The Karnataka government has given the Central Bureau of Investigation (CBI) clearance to file a charge sheet against the five officers, including two IPS officers, in the IMA Ponzi scheme in which over a lakh people were allegedly duped of more than Rs 4,000 crore.
The permission to prosecute the senior IPS officers has been issued under Criminal Procedure Code section 197 (Prosecution of Judges and Public Servants) and section 170 of the Karnataka Police Act (Suits or prosecutions in respect of acts done under colour of duty).
The two IPS officers are Hemant Nimbalkar, Additional Commissioner of Police (administration) in Bengaluru city, and Ajay Hillori, a commandant in the state reserve police. The other three policemen are of the rank deputy superintendent, inspector and sub-inspector.
Under the ponzi scheme, valued at over Rs 4,000 crore by the CBI, hundreds of depositors were swindled of their savings. It was allegedly backed by top politicians, police and state officials in Karnataka.
The five officers have been charged with conspiring with IMA founder Mohammed Mansoor Khan and others for protecting the interest of IMA and its entities. They will be tried under CrPC, Karnataka Police Act and Karnataka Protection of Interest on Depositors Financial Establishment Act.
The government order said the CBI has held that Nimbalkar, Hilori and other officers favoured IMA, ascertaining in their inquiry report that these companies are not financial establishments under the definition of KPID Act and the deposits received by them are exempted under the Act. The CBI said that these officers received favours from IMA in return for their help.
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