BENGALURU: The Special Investigation Team (SIT) probing the IMA fraud case has moved the Karnataka High Court to invoke Karnataka Protection of Interest of Depositors in Financial Establishments Act (KPID Act) in the case, which will pave the way for officials to seize properties belonging to the firm and its owner Mohammed Mansoor Khan and, to return money to investors by auctioning them.
Sources in the SIT said that senior officials decided to add the act, along with existing IPC sections, in the interest of the investors.
“We have already filed a petition in court regarding the same and soon the act will be invoked,” an official said.
Once, the court grants permission, the police will identify all his movable and immovable properties and seek information from the public about his properties.
With the help of Revenue Department officials, they will be attached to the court and an auction will be held.
The money derived out of the auction will be used to repay investors, the official added.
Meanwhile, SIT officials continued the search operation at Mansoor’s residence in Shivajinagar and his relatives' houses as well. It is learnt that the police have seized several documents related to his financial dealings during the operation.
Though Khan has already fled to the UAE, police are trying to track his movements, said sources.
On Sunday, over 1,500 investors filed complaints against IMA and its founder. With this, the total number of complaints received has increased to more than 34,800.
Meanwhile, several employees of the firm met DCP (East) and reportedly complained that their employer had cheated them too of several lakhs.
“More than 150 employees had invested in the firm and now they are in the lurch as they have lost both their job and investment,” the officer said.