Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Jun 19: The special investigation team (SIT) which is probing the scam involving IMA has found that in addition to violating acts and rules governing financial dealings, the entity has also transgressed company law and cooperative rules. Although the firm has continuously defaulted in filing of audited accounts since its inception year after year, which is compulsory as per company law and cooperative act, the licence of the company, surprisingly, was renewed every year.

Under IMA Group of Companies, 16 companies have been registered. Some have been registered under cooperatives act while others fall under company act. SIT sources said that the officials of the department of cooperation have not even undertaken mandatory audit of the account books of these firms. It is also strange that without receiving financial results and audited accounts, the licence of the group was renewed annually.

Intelligence official are expected to scrutinize the audited accounts and file complaints with either police department, enforcement directorate or Reserve Bank of India depending on the quantum of wrong transactions or seriousness of lapses unearthed. If the cooperative department had functioned properly, IMA fraud would have been exposed long back and the firm would not have been allowed to exist thus far, SIT sources point out.

At the same time, complaints about IMA had been sent earlier to enforcement directorate after the income tax department, during its raids, found discrepancies in accounts. But both these departments did not go ahead and clear the air of suspicion. Failure of several agencies have now compounded the problems of investors, it has been pointed out.

So far, 36,000 people have filed complaint against IMA. Case under sections 120 B and 409 of Indian Penal Code has been filed in commercial street police station here. Head of the SIT Ravikanthe Gowda, said that the names of accused would be added to the case as and when their names tumble out during investigation.