'Panel urged action against IMA, but govt did nothing'

Former Union minister K Rahman Khan has revealed that the state government had turned a "blind eye" to a recommendation made by a chief secretary-headed committee to take action against the IMA Group two years ago.

In 2017, a state-level coordination committee of the RBI recommended that the government take action against IMA but nothing was done. The recommendation was based on information provided by the Income Tax department and the Enforcement Directorate. The committee consisted of the chief secretary, the state police chief, the Bengaluru police commissioner and the Bengaluru Urban deputy commissioner, Khan told reporters on Monday.

"That IMA was a fraudulent company was well known. The I-T department and the ED had raided its establishments. The government committee recommended action after finding its operations suspicious. Minutes of the committee's meeting are there for all to see. Why was no action taken against IMA even though the then government was aware of everything," he demanded.

Rahman Khan claimed he had nothing to do with IMA or its founder Mohammed Mansoor Khan.