Victims of over 6 halal ponzi schemes in Bengaluru await action, approach DC

While probe against Bengaluru-based ponzi schemes such as IMA and Ambidant have seen some progress after the arrest of the high-profile accused, victims of at least six other such fraud companies are awaiting action by the authorities.

It has been more than a year since the cases against ponzi schemes like Injaz, Muzaribah, Aala, Burraq, Morgenall and Nafiya were registered but till date, there has been no appointment of a competent authority for a probe, as mandated by the Karnataka Protection of Interest of Depositors (KPID) Act.

These competent authorities, usually of the rank of Assistant Commissioner or above, can sell the seized assets of these companies and distribute the money among the victims proportionately.

Till date, only Ajmera, Ambidant and IMA ponzi schemes have seen competent authorities appointed. Notably, in the IMA case, the state government has appointed Bangalore Regional Commissioner Harsh Gupta as the competent authority, as directed by the Karnataka High Court. 

While in the IMA case, Harsh Gupta has petitioned the high court to seek online claims from the victims for the refund process just within two months, the competent authorities for Ambidant and Ajmera have not done anything.

Activists and victims under the aegis of ‘LanchaMukta Karnataka,’ who have been uniting the victims on Thursday met Bengaluru District Commissioner K Srinivas and asked for the prompt appointment of competent authorities for other six cases. 

They have cited Section 3(1) of the KPID Act in their plea, which gives power to District Commissioner to take suo motu action and get a competent authority appointed. Incidentally, the previous DC, BM Vijay Shankar has been arrested in the IMA case for allegedly accepting bribes from the company.

“The probe into the IMA case has gained pace, despite a pathetic seizure of assets, and the Competent Authority has even filed a case in a special court seeking permission for the online acceptance of claim forms from victims. However, the victims of other ponzi companies have got a raw deal, where for over a year, even the competent authority has not been appointed,” Narendra Kumar, State Joint Secretary, LanchaMukta Karnataka, said.

The group has also petitioned the Karnataka High Court over the swift refund of money for the victims.