Ponzi scheme: Karna Cong leader seeks formation of regulations

In the backdrop of the alleged financial fraud by an investment firm here, Senior Congress leader H K Patil Sunday urged the Karnataka government to formulate regulations under a law that enables confiscation of properties of fraudsters and returning it to investors in 180 days.

In a letter to Chief Minister H D Kumaraswamy on Sunday, Patil gave a slew of suggestions to protect the interest of investors by returning their dues and initiate action against the culprits.

"The state government should immediately formulate regulations under the Banning of Unregulated Deposit Schemes Ordiance-2019, and enable confiscation of properties of frausters and returning the property to the investors in 180 days," he said.

The city-based IMA jewels had allegedly cheated a large number of investors after promising them impressive returns on their deposits.

Nearly 30,000 complaints have so far been received by police in connection with the case, relating to which seven directors of the firm were apprehended on June 12.

Mohammed Mansoor Khan, owner of the firm went absconding after allegedly threatening to commit suicide in an audio clip.

He also demanded Kumaraswamy to constitute a competent authority under section 7 of the ordinance and appointment of officers and staff without any delay.

Advocating setting up of special courts for speedy trial in such cases, Patil said mere vigilance was not sufficient but initiating action under such regulations was also necessary.

Underscoring the necessity to instill confidence among people about the administration, Patil inisisted upon financial awareness among people.

Chief minister Kumaraswamy has not responded to the suggestions yet.

While BJP leaders including MLA Basanagouda Patil continued to demand a CBI inquiry into the case given that a few Muslim leaders' name surfaced, Karnataka forest minister Satish Jarkiholi ruled it out, saying the Special Task Force was competent enough to solve the case.

On June 12, The Karnataka government had formed a 11-member Special Investigation Team (SIT) to probe the case.

As reports emerged that Khan had fled to Dubai, the SIT had said they were investigating his whereabouts.