Ponzi scheme: Whistleblower Alam Pasha seeks arrest of IAS officer, cop and IMA chief

News Network
October 27, 2021

Bengaluru, Oct 27: Industrialist-cum-whistleblower Alam Pasha has lodged a complaint with the Anti-Corruption Bureau seeking arrest of three persons, including IAS officer Harsh Gupta and Commercial Street Inspector of Police for alleged dereliction of duties with an ulterior aim to acquit IMA chief Mohammed Mansoor Khan, who is an accused in IMA scam.

Speaking to UNI, Pasha said Gupta, who was appointed by Karnataka government as Competent Authority (CA) on behalf of Revenue Department to retrieve the investors monies of more than Rs 4,000 crore and take action as per law against Khan and other accused in the case.

Giving background of the scam in his complaint, Pasha said Khan had floated a ponzi scheme offering investors dream returns on investments made in his firm called I Monetary Advisory Group.

Around October 2018, as many as 75,000 investors began complaining of the firm reneging on payments worth Rs 4,000 crore and the firm also had come under the RBI scanner, he said.

The firm was accused of siphoning off nearly Rs 4,000 crore of funds for the personal benefit of the owners of the firm, he said.

In June 2019, Khan absconded as police initiated a probe in the case. Before absconding, he had released an audio message for the police accusing then Congress MLA Roshan Baig for the fall of the firm, Pasha alleged.

Khan alleged Baig borrowed Rs 400 crore from the firm and failed to return it. He had also accused other politicians and officials of bleeding IMA resources, the complainant said.

After the scam became a major controversy, the then Karnataka Chief Minister HD Kumaraswamy ordered the creation of a Special Investigation Team (SIT) to probe the IMA scam, he said.

Khan was arrested by the ED at Delhi airport in July 2019. In October 2020, he was granted bail by Karnataka High Court, Pasha said.

Gupta, the complainant said, has failed to take action as per law to book IMA culprits to meet the purpose of his appointment to retrieve the monies of the investors from them.
He said the CA has failed in his duty to direct the Inspector of Police to file FIRs against the IMA culprits so that the victims of the scam get back their monies, which they had invested in nine of the companies owned by Khan.

"Unless the police file FIRs against the IMA culprits, no court in the country shall be able to deliver the verdict in favour of the victims. Filing FIRs is the first step towards providing relief to the victims," he said.

The CA also has failed in his duties to seek the intervention of the Ministry of Corporate Affairs to investigate serious frauds committed by IMA Group of companies so that the investigation is carried out without depending on police and their investigation, Pasha said.

The IMA group of companies fall under the purview of the Companies Act 2013 as they are not financial establishments, Pasha said.

Also, the CA has been appointed under section 5 of the Karnataka Protection of Interest of Depositors in Financial Establishment Act 2004, who enjoys powers to initiate an investigation into the financial establishments, but IMA Group of companies are full-blown firms, Pasha said.

"So, knowing that he has to depend on the investigation of the police, the CA is well within his rights to seek the intervention of the Ministry of Corporate Companies to conduct investigations under SFIO rules. If he is sincere and genuine, he would have asked for the SFIO probe," he said.

"It is very clear that the CA and the police officer are working in favour of the accused, namely Khan, rather than giving relief to the IMA victims, who are waiting for retrieval of their money. In these circumstances, I had approached the ACB and lodged a complaint seeking arrest of the three accused," Pasha said.

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News Network
March 25,2024

reddymining.jpg

Bengaluru, Mar 25: Former Karnataka Minister and mining baron G Janardhana Reddy on Monday rejoined the BJP ahead of the 2024 Lok Sabha polls.

The Gangavati MLA, who is an accused in an illegal mining case, had formed the 'Kalyana Rajya Pragati Paksha' (KRPP) ahead of the state assembly polls last year, snapping his two-decade-old association with the BJP.

Reddy today merged his KRPP with the BJP as he, along with wife Aruna Lakshmi and some family members, joined the party in the presence of its veteran leader and former Chief Minister B S Yediyurappa, state President B Y Vijayendra, and others.

Reddy had recently met Union Home Minister Amit Shah in New Delhi.

However, in the February 27 Rajya Sabha polls he had extended support to the Congress candidate.

Calling it a "home coming", Reddy explained that the move to merge KRPP with the BJP is to "make Narendra Modi the Prime Minister a third time".

"Amit Shah had invited me to Delhi and told me that -- there is no question of extending outside support (KRPP supporting BJP in LS polls) and instead I should join the BJP and work for it, as I took my political birth in the party. Accepting it, I'm joining the party," he said.

Praising Yediyurappa and the leader's contribution in his political growth, Reddy said he is happy that he will be working in the party now with the veteran leader's son Vijayendra.

"I will work as a common party worker along with other leaders under the leadership of Vijayendra. I have not come with any conditions or expectations. Whatever responsibility the party gives me, I will honestly work.

"BJP was always there in my blood, but due to some reasons I had gone out, but today I feel I have come back to my mother's lap. Looking at my brothers here, I don't feel like I'm coming back to the BJP office after 13 years," he added.

Welcoming Reddy back into the party, Vijayendra said his joining will strengthen BJP in the Kalyana Karnataka region.

"Liking Narendra Modi's leadership and accepting BJP's ideology, Reddy has rejoined the party. Reddy has said that Karnataka should have a larger contribution in making Modi PM once again -- to ensure that BJP and JD(S) alliance win all the 28 Lok Sabha seats in the state, he is merging his KRPP with BJP and is joining the party," he said.

Before the assembly polls last year, Reddy had been largely politically inactive for nearly 12 years since his arrest by the CBI for an alleged role in a mining scam. During this period, he had a brief stint ahead of the 2018 assembly polls when he campaigned for his close friend and former Minister B Sriramulu in Molakalmuru Assembly segment.

In the run up to the 2018 assembly polls, the then BJP national president Amit Shah, in response to a reporter's question, had distanced the party from him and stressed that "the BJP has nothing to do with Janardhana Reddy." Accused in a multi-crore illegal mining case, he has been out on bail since 2015. Several conditions were imposed by the top court in its order which includes prohibiting him from visiting Ballari in Karnataka and Ananthpur and Kadapa in Andhra Pradesh.

Because of these restrictions, he had to contest the 2023 Assembly polls from Gangavati in Koppal district.

Expressing his displeasure about the way BJP had ignored him, Reddy had announced a new party last year and also took a dig at his brothers -- Karunakara Reddy and Somashekar Reddy -- and Sriramulu, as they remained with the BJP.

The three of them had unsuccessfully contested the Assembly polls, with Reddy's new party said to have impacted their performance in the election.

Sriramulu, a ST community leader and former Minister is now the BJP's candidate from the Bellary (Ballari) Lok Sabha constituency.

Reddy had played an instrumental role in strengthening the BJP in the Ballari district and is still believed to enjoy a considerable clout there as well as in adjoining districts like Chitradurga, Koppal and Raichur, which could be useful for the BJP in the Lok Sabha polls.

Reddy and his brother-in-law B V Srinivas Reddy, managing director of Obalapuram Mining Company (OMC), were arrested by the CBI on September 5, 2011.

The company is accused of changing mining lease boundary markings and indulging in illegal mining in the Ballari Reserve Forest area, spread over Ballari in Karnataka and the Anantpur district of Andhra Pradesh.

Reddy first came to political limelight during the 1999 Lok Sabha elections, when he campaigned for BJP leader, the late Sushma Swaraj, who had contested against Congress' Sonia Gandhi from Ballari.

Former Congress Minister T John's son Thomas John also joined the BJP today.

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News Network
March 28,2024

An Indian expatriate, hailing from Dakshina Kannada district in Karnataka, who was detained in Jeddah jail in an alleged cyber case, was set free recently. He is allowed to continue his work in the same company. 

The 49-year-old Mangalurean, has been working for a Maintenance company in Jeddah for more than 13 years. He is known for his efficiency and sincerity in the company with good experience in his field of work. 

His company usually assigned him on duty in Jeddah sea port to take the delivery of the goods consigned to his company. As a part of his duty, he normally takes pictures of the goods before the transportation. He did the same in February 2023 too. 

The security personnel informed the police about his act that amounts to be a violation of the port security rule. He was unaware of the rule as he was doing it normally in the port during the release of the goods. Since then, he was detained by the police on the charge of photographing inside the port premises. After more than 6 months detention, he was released and allowed to work in the same company. 

The detainee’s brother based in Jeddah was constantly pursuing the case.

P A Hameed Padubidri, a pro-bono NRI lawyer and social worker based in Riyadh, extended his socio-humanitarian help in this case upon the request of his family and relatives. 

He actively involved trying to set him free from the jail on humanitarian grounds with the coordination and help of the Consulate General of India (CGI) Jeddah. The CGI keenly followed up the case with the concerned Saudi authorities. He was released from the jail recently and shared his happiness with his family and thanked good samaritans. 

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News Network
March 22,2024

The Enforcement Directorate on Friday produced Delhi Chief Minister Arvind Kejriwal before the Rouse Avenue court and sought a 10-day custody in the excise policy-linked money laundering case. "Kejriwal was the kingpin of the scam," the ED reportedly told the court after the AAP chief was produced before Special Judge Kaveri Baweja around 2 pm amid tight security. 

ASG S V Raju was appearing for the agency, while Senior Advocate Abhishek Manu Singhvi is representing Kejriwal. 

Raju in his argument said Kejriwal was "directly involved in formulation of the (liquor) policy... he was involved in handling of proceeds of crime as well in the Goa election campaign."

"The expert committee was constituted but it was a sham committee. The policy was made in such a manner that it would enable the taking of bribes and recoupment of people who gave the bribes," the ED counsel said. 

Kejriwal was produced in the trial court shortly after he withdrew from the Supreme Court his plea against arrest by the Enforcement Directorate in the excise policy-linked money laundering case. Kejriwal's counsel said he would contest the remand proceedings before the trial court and then come back to the apex court with another petition.

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