With zero profit, IMA paid Rs 134 crore in taxes

The ponzi company gained legitimacy by paying taxes and getting influential people on its side, says IAS officer in charge of refunds

Officials trying to refund victims of the IMA scam have stumbled on an unusual detail: the company paid Rs 134 crore as taxes when no tax was due.

I-Monetary Advisory, a Bengaluru-based company founded in 2006, went bust in 2019, leaving thousands of depositors in the lurch. It mainly targeted Muslims, claiming its investment model follows Islamic principles.

“The IMA has paid Rs 134 crore as tax over a period of time. The forensic auditors say that there was no profit generation, and so IMA was not liable to pay tax,” says Harsh Gupta, IAS officer appointed by the government, to look into refunds.

Designated ‘IMA special officer and competent authority’, he was instrumental in setting up a website to enable depositors to file their refund claims (see box).

IMA, with its headquarters in Shivajinagar, was only circulating money, and not making any profits, investigators say. It ran a host of businesses, including jewellery stores and pharmacies, but its main interest was in collecting deposits by promising up to 12 per cent monthly interest.

“We have written to the state government asking them if they could take this up with the Central government and get the tax money refunded,” Harsh Gupta told Metrolife.

The investigators have sought the examination of the assets of two senior police officers — Hemant Nimbalkar and Ajay Hilori---and two subordinate officers named in the scam case. If enough evidence is gathered by the CBI, the policemen must be deemed beneficiaries and steps taken to attach their assets, Harsh Gupta says. “We still don’t have enough money to repay the depositors. We are exploring multiple ways in which we can refund the depositors’ money,” he says.

Tax recovery?

A senior income tax official says it is difficult to determine how much tax depositors have paid on income generated from IMA deposits.

“In most of these ponzi schemes, people don’t file their returns because they want to evade tax. It is a large network of money changing hands that is difficult to track,” he told Metrolife.

While the CBI can attach the assets of those who have profited from the IMA scam, the accused may claim the assets were not acquired from tainted money.

“The investigating team must look into this and thoroughly scrutinise the papers,” adds the official.

Investigation status

Meanwhile, the CBI is trying to identify influential people who profited from protecting and promoting the business operations of the IMA.

Investigators are going
after politicians and policemen who helped the racket thrive. Former minister Roshan Baig, now in judicial custody, is among those arrested in the case.

The man at the helm of the business, Mansoor Khan, had fled to Dubai in 2019.

He was later arrested, and is now lodged in Parappana Agrahara jail.

In 15 days, 40,000 calls flood refund website

About 40,000 have filed for refunds on a website launched for depositors who lost money in the IMA Group scam. The site has been active since November 25. Harsh Gupta, says the site has proved highly effective in helping track scam victims.

The online initiative has been especially helpful for depositors, some from outside Bengaluru, unable to travel because of the pandemic.

Thanks to the website, depositors can now submit documents and file complaints online. “Claims are also being received through BengaluruOne, KarnatakaOne and Atalji Jan Snehi Kendras and our volunteers are visiting bedridden people and picking up their papers. Our call centre has received 30,000 calls till date,” he told Metrolife.

The chatbot on the website, with frequently asked questions, has been accessed by 4,000 people and a newly launched WhatsApp number got about 5,000 calls from people asking how they could file their claims.

“We have taken extra care to inform the depositors about the claim filing dates and procedures by sending burst SMSes, IVRS calls and letters to about 70,000 depositors,” he says. The last date for submission of claims is December 24.

The authorities will start processing claims after that date. “The value of properties seized stands at Rs 475 crore. The principal investment is
Rs 2,900 crore and the amount to be returned is about Rs 1,400 crore after taking into account money received by the depositors in the form of returns or profits,” says Harsh Gupta.

Scam victim? File for refunds here

Claimants can call 080 4688 5959 between 8 am and 8 pm. WhatsApp [phone]. Email [e-mail].
The IMA Special Officer and Competent Authority office is located on the 2nd Floor, BMTC Complex, Shanti Nagar.