IMA scam: SIT arrests Bengaluru Urban DC

Bengaluru: In a major catch in the I Monetary Advisory (IMA) scam, in which over 50,000 investors were duped of over Rs 4,000 crore, the Special Investigation Team (SIT) probing the scam arrested Deputy Commissioner of Bengaluru Urban District B.M. Vijay Shankar.  Vijay Shankar was arrested after Assistant Commissioner of Revenue Department L.C. Nagaraj and Village Accountant Manjunath, who were arrested earlier this month, spilled the beans on Rs 4.5 crore bribe and the involvement of Vijay Shankar.

According to SIT, Vijay Shankar received Rs 1.5 crore from IMA group MD Mohammed Mansoor Khan to sign on a favourable report made by Nagaraj which was later submitted to the government and the RBI. The trio received Rs 4.5 crore from Khan to execute the task.

During the investigation, both Nagaraj and Manjunath revealed that Vijay Shankar took his share of Rs 1.5 crore, following which he was summoned for questioning and later arrested. The SIT sleuths also raided his house.

Nagaraj was appointed Competent Authority by the government to look into the functioning of IMA after the RBI highlighted irregularities in the company. Nagaraj, however, took Rs 4.5 crore from Khan for a favourable report which was later submitted to the government and RBI.

Sources said the SIT has also taken into custody a builder, Krishnamurthy, who is being questioned.

Earlier, the SIT had arrested Bengaluru Development Authority Executive Engineer P.D. Kumar for receiving a bribe of Rs 4 crore from Khan and BBMP nominated corporator Syed Mujahid who, according to SIT, was involved in financial transactions with Khan.

In all, the SIT has arrested 18 people in connection with the IMA scam, including 12 IMA directors, one auditor, nominated corporator Syed Mujahid, BDA Executive Engineer P.D. Kumar, Assistant Commissioner, Revenue Department, L.C. Nagaraj, Village Accountant Manjunath and Bengaluru Urban Deputy Commissioner B.M. Vijay Shankar.