Khushi
The High Court of Karnataka directed the State government to take a decision on refunding ₹12.82 crore for redevelopment and maintenance of V.K. Obaidullah Government School in Shivajinagar that is spent by the IMA group.
The multi-crore ponzi scheme run by Karnataka-based IMA and its group entities allegedly duped lakhs of people promising high returns using islamic ways of investment.
“Prima facie, we are of the view that investors’ money cannot be diverted for building a school owned by the government,” the court said.
A division Bench of Chief Justice Abhay Shreeniwas Oka and Justice Suraj Govindaraj issued the direction after IAS officer Harsh Gupta, Special Officer and Competent Authority under the Karnataka Protection of Interest of Depositors in Financial Establishment (KPIDFE) Act, 2004 for IMA and other scams, wrote a letter to the government for refunding of Rs 12.82 crore spent by IMA Group for development of infrastructure at V K Obaidullah Government School in Shivajinagar.
The main purpose behind the direction is to save the Karnataka government from the embarrassment of its attachment. Harsh Gupta advised that the money can be used for settlement of a large number of claims.
The Court also directed the government to reconsider its decision on attaching the properties of former Minister R. Roshan Baig.
It was pointed out that there is no need for the government to wait for the investigation report from the Central Bureau of Investigation (CBI) as law empowers the authorities to attach properties based on other relevant materials.