IMA fraud: HC issues notices to state, CBI and SIT

The high court issued notices to the state, Central Bureau of Investigation (CBI) and Special Investigation Team (SIT) while hearing a petition filed by Bengaluru Urban Deputy Commissioner B M Vijay Shankar.

Shankar was arrested by the SIT in connection with the IMA scam.

Justice Dinesh Kumar issued the notices in response to the petition filed by Shankar who sought a CBI probe into the case.

The petitioner had urged the court to quash the notification forming the SIT issued by the government on June 12, and stay all further proceedings in pursuance of the notice dated July 6, issued to him. He also urged the court to stay all proceedings initiated against him before the city civil court.

The deputy commissioner further urged the court to direct the Centre to entrust the matter to the CBI under the Section 29 and 30 of Ordinance 7/19 (Banning of unregulated deposits, schemes, deposits, schemes, ordinance 2019) promulgated by the President of India. He contended the SIT had no jurisdiction to investigate the case.

The petitioner further contended that the SIT served him a notice under Section 160 of the CrPC, though he has been appointed the competent authority under the Karnataka Protection of Interests of Depositors in Financial Establishments Act. Therefore, he cannot be summoned as a witness by the SIT and there is a vast difference in investigation and enquiry under the CrPC.

Henceforth the notice issued to him was without the authority of law, the petitioner maintained. The court adjourned the hearing of the case to next week.