oppn parties Bengaluru Ponzi Scam: Congress And Scams Cannot Be Kept Apart

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  • Amidst loud attack on the government for trying to change the Constitution, PM Modi says the Constitution is Gita, Bible and Quran for the BJP government
  • PM Modi says Congress circulating meat cooking and eating videos during Navratri and the month of Savan is indicative of its 'Mughal' mindset
  • Medical journal Lancet has said that medical data from India needs more transparency for correct analysis and policy action
  • India issues advisory for citizens to refrain from travelling to Iran and Israel as conflict escalates in the Middle-East
  • Rameshwaram Cafe blast accused arrested in Bengal hid in several Kolkata lodges before going to Digha in Medinipore from where they were arrested in a joint operation by the NIA and the state police
  • AAP leader Atishi says Centre is laying the groundwork to impose President's rule in Delhi
  • Elon Musk likely to discuss Starlink too with PM Modi
  • Elon Musk likely to discuss Starlink too with PM Modi
  • Currency in circulation rose by Rs 1.3 lakh crore in one year from FY23 to FY24
  • Gold jumps to nearly Rs 74000/ 10gm on MCX
  • Retail inflation was at 5-month low in March and IIP was at 4-month high
  • Stock markets crash on Friday - Sensex tumbles 793 points to 74244 and Nifty 234 points to 22519
  • Legendary boxer Mary Kom resigns as chef-de-mission of Paris Olympics squad citing personal reasons
  • IPL: DC beat LSG by 4 wickets as Kuldeep Yadav bowls a dream spell to restrict LSG to just 167
  • Bombay HC says Senior Citizens Act not a tool to settle property disputes but a law to ensure that seniors are not treated harshly and to resotre residential rights in houses they might have gifted to their children in their lifetime
West Bengal Police helps NIA arrest two Rameshwaram Cafe blast accused from Digha
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Bengaluru Ponzi Scam: Congress And Scams Cannot Be Kept Apart

By Sunil Garodia

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.

If Congress (either on its own or in alliance) is at the helm of affairs, will scams and corruption be far behind? The latest to sully the image of the party is the fast ballooning ponzi scam in Bengaluru in which, at last count, more than Rs 1700cr (expected to cross Rs 5000cr by the time the last complaint is filed) have been lost by investors who were duped with promises of halal investment and/or fancy interest rates on their investment.

The reports that are emerging are distressing, to say the least. The Times of India reports that a particular minister tried to bail him out with a Rs 600cr package even after it became known that Mohammed Mansur Khan was running a racket to fleece people, but his efforts came to naught as he came up against a conscientious IAS officer who refused to sign the papers.

It has also come to light that Khan was able to flee from the country when things got too hot with the active connivance of the administration. He boarded a flight to Dubai with the investigating agencies close on his heels. It is now clear that Khan was kept in the loop by someone in the government and advised to leave India.

When Khan’s firm was under the RBI scanner and the revenue department had put out a notice detailing the fraudulent practices of his firm, Khan approached a bank for a huge loan. The bank insisted on a no-objection certificate from the state government which tried his best to acquire through the office of the above-mentioned minister. But they had not reckoned with the IAS officer who refused to sign the papers to issue the certificate.

Once the bank loan bailout failed, Khan’s empire began to crumble. He defaulted on interest payments in March, leading to a spate of complaints against him. His efforts to keep the scam running did not succeed as no Peter was making a fresh investment for him to pay interest to the thousands of Pauls who were knocking at his door. Hence, Khan first shipped his family out of India and later fled himself. His flight could not have been possible without some corners being cut by his friends in the administration. For, by the time he boarded the flight, everyone in the government knew he was a scamster and was in trouble.

This leaves the Congress-JD(S) government in Karnataka to handle the fallout of the case and deal with the army of duped investors. With the scam figure rising every day, the government is going to take a bad hit. As the alliance is already rocked by several controversies and the Lok Sabha election debacle, one feels this scam will now pull it apart at the seams. A certain B S Yeddyurappa must be watching the developments with glee.