Updated: November 25, 2020 7:17:40 pm
Former MLA Roshan Baig was remanded to CBI custody for three days till November 28 by the CBI special court in Bengaluru on Wednesday in connection with Rs 4,000 crore ponzi scheme. Baig, who was arrested by the CBI on Sunday, is alleged to have received several crores in kickbacks.
Baig, who is lodged in Parappana Agrahara Central Jail, will be brought to CBI office.
More than 40,000 investors, mostly from the Muslim community, were duped of their savings by arrested businessman Mohammed Mansoor Khan, who owns the IMA Group.
Baig’s name emerged when the scam surfaced nearly 18 months ago. Khan had fled the country but was arrested and brought back from Dubai in July 2019 by the Bengaluru Police Crime Branch.
While on the run, Khan has released a video in which he had claimed that several state politicians and officials had coerced him into paying bribes, leading to the downfall of IMA. One of them, whom Khan claimed had received nearly Rs 400 crore, was Baig, the then Congress MLA from Shivajinagar constituency in central Bengaluru.
What is Karnataka's IMA scam?
In what has come to be known as the IMA scam, a private firm called I Monetary Advisory Group floated a ponzi scheme offering investors dream returns to the tune of 36 to 64 per cent on investments. The investment schemes of the firm were pitched as being in line with Sharia principles of Islam.
During investigations last year, police found documents in which a key associate of Khan had recorded payments made to politicians, policemen, and government officials. It showed Baig as a key recipient of funds.
On Monday, a 13-member team of CBI officials from Delhi raided Baig’s house in Pulakeshinagar at around 6.30 am. According to the CBI sources, two teams conducted the raids on Baig’s residence, when Roshan Baig’s wife Sabiha Fatima and son Ruman Baig were at the residence.
The raid continued till evening where officials also raided Ruman Baig’s office on Jayamahal road. CBI sources said that they have seized some of the documents, which they suspect to be linked to their investigation.
Baig crossed over to the BJP along with 16 other Congress and JDS MLAs in July 2019 and helped the BJP form a government under B S Yediyurappa by ousting the Congress-JDS coalition. Soon after coming to power, the BJP handed over the IMA scam case to the CBI in August 2019.
Baig, a seven-time MLA, was denied a BJP ticket for the bypolls held for the Shivajinagar constituency in December 2019 on account of his links to the IMA scam.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.