The State government on Tuesday assured the Legislative Assembly that it would examine the demand for amending the legislation concerned to ensure that investors are not cheated by being made out as partners in the multi-crore I Monetary Advisory (IMA) scam.
During to a debate on the scam initiated by Congress member Rizwan Arshad, who expressed concern about the promoters of the company cheating investors by presenting them as partners, Law Minister J.C. Madhuswamy said the government would consider the suggestion of amending the Karnataka Protection of Interest of Depositors in Financial Establishments Act to safeguard the interests of investors.
Mr. Arshad and others expressed concern that the investors may not get back their deposits if they are treated as partners by the company. Many of them urged the government to take measures to return the deposits from the proceeds of the assets seized from the promoters of IMA.
To this, Mr. Madhuswamy said a notification had been issued through the Revenue Department to confiscate the property of IMA owners and directors worth ₹465.21 crore, but it was not possible, at this stage, to give back the deposits as the investigation was yet to reach its final stage. “Even now, we are receiving petitions from people saying that they have invested in IMA and demanding return of their deposits. We cannot begin the process of using the confiscated property to pay back depositors as the deadline for receiving petitions is not yet over,” he said.
He explained that such an appeal could be made before the High Court of Karnataka, which is looking into the issue, when the case reaches the final stage.
Replying on behalf of Chief Minister B.S. Yediyurappa, the Minister said a proposal had been sent to the Finance Department for utilising the services of Sakala call centres to the provide information to depositors through SMS.
Giving details about the case, he explained that the Central Bureau of Investigation had taken over the IMA scam probe on September 17, 2019, and updates on the inquiry were being submitted to the High Court on a regular basis.
