The Directorate of Execution (ED) conducted searches on Thursday against the former Minister of Karnataka R Roshan Baig and a congressman as part of a money laundering investigation into the alleged scam of Rs 4,000 IMA Ponzi, officials said.
They said several premises of Baig and his associates were raided by the agency under the provisions of the Prevention of Money Laundering Act (PMLA).
Two of its premises in Shivajinagar in Bangalore and that of the Congressman of Chamrajpet in Bangalore, BZ Zameer Ahmed Khan, as well as a travel agency linked to him were raided.
Searches were also carried out in parts of Mumbai.
The congressman allegedly had an alleged real estate transaction with IMA Group Managing Director Mansoor Khan. This transaction was stated by Zameer Ahmed Khan in his election affidavit.
Baig, previously arrested by the Central Bureau of Investigation (CBI) in the case, was suspended from Congress after the alleged scam was exposed.
Baig is currently out on bail.
The Enforcement Branch’s action is linked to its investigation into the alleged 4000 crore I-Monetary Advisor (IMA) ponzi scheme scam, becoming aware of a CBI FIR and an act of charge.
The CBI in April filed an indictment in a special CBI court in Bengaluru and named Baig, Mansoor Khan, IMA Group and the company of Baig Daanish Publications and others.
“It has been alleged that the accused former minister received several crore rupees from IMA funds for election expenses.
“It was further alleged that the accused also used the said funds for current expenses, including the salaries of the employees of his company. It was also alleged that the accused spent the funds for various social and cultural activities in his constituency to increase his popularity, “said a spokesperson for the CBI in a statement released after the indictment was filed.
The alleged IMA scam involves over 4,000 crore rupees collected by the IMA Group from over a million gullible investors in the name of providing attractive returns on investment through Islamic methods.
The CBI alleged that the money was diverted to Baig, a minister in the former Congressional government, led by Siddaramaiah, so that the IMA group could continue its illegal activities, CBI officials said.
The CBI had registered four cases relating to the scam and filed several indictments against 33 defendants, including Khan, company directors, several tax officials and the police.
“It was alleged that the said group had raised unauthorized deposits and deceived the public by not repaying the principal as well as the promised returns.
“These funds were said to have been misappropriated to acquire property, pay bribes, etc. Several properties, including movable and immovable property, have been identified and seized under the KPIDFE (Karnataka Protection of Interest of Depositors) law. in Financial Establishments) Act, 2004 by the competent authority, “the CBI said.
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