In 2019, Bengaluru became the center of one of India’s biggest financial scams. Over 100,000 investors, mostly from the Muslim community, lost their life savings when I Monetary Advisory (IMA) collapsed. The founder, Mohammed Mansoor Khan, had promised high returns on “Sharia-compliant” investments.
What looked like a golden opportunity turned out to be a ₹3,213 crore Ponzi scam, leaving thousands financially and emotionally devastated.
IMA Review
IMA started in 2013. It presented itself as an ethical investment company offering returns between 36% and 64%—way higher than normal market returns.
The company operated in gold trading, education, healthcare, and real estate. Investors were told they were entering “profit-sharing partnerships,” a common concept in Islamic finance. On paper, everything seemed legit.
But the reality was different. IMA ran a classic Ponzi scheme: money from new investors was used to pay earlier investors. When new funds slowed down, the scam collapsed. By March 2019, dividends stopped. By May, offices were closed, and investors couldn’t withdraw their money.
The Scale of the Scam
The IMA Ponzi scam affected over 100,000 investors, with losses totaling ₹3,213 crore. Many families lost life savings meant for weddings, education, or medical emergencies.
The company’s presence in multiple sectors added to its credibility, making it easier to attract trust and money. The emotional impact was huge—communities felt betrayed by someone they trusted.
Arrests and Political Connections
Mohammed Mansoor Khan fled the country, reportedly to Dubai. But in July 2019, he returned to India and was arrested by the Enforcement Directorate (ED) at New Delhi airport.
Investigations also revealed political connections. Former Congress MLA Roshan Baig was accused of helping IMA operate and allegedly received bribes. The CBI conducted multiple raids, uncovering the extent of political involvement.
Legal Action and Asset Seizures
Authorities moved quickly to recover some of the lost money. ED attached assets worth ₹209 crore, including bank accounts, properties, and gold.
Legal proceedings are still ongoing. The scam highlights the importance of strong regulation and coordination between agencies like ED, CBI, and state authorities.
Compensation for Victims
The Karnataka government has taken steps to help victims. In February 2025, the state announced plans to auction IMA’s assets and distribute the proceeds to investors.
Victims can also file claims online through the official portal: imaclaims.karnataka.gov.in. While full recovery will take time, this is a step toward justice.
How to Identify Ponzi Scheme?
IMA is a textbook example of a Ponzi scheme. Here’s how to spot such scams:
- Unrealistic Returns: Promises of 30%-60% annual returns are usually fake.
- Pressure to Invest Fast: Scam companies create urgency.
- Complex or Secretive Operations: If you don’t understand how money is made, be careful.
- Difficulty Withdrawing Funds: Delays in accessing your money are a red flag.
Tips to stay safe:
- Check Registration: Verify the company with SEBI, RBI, or other regulators.
- Do Your Research: Look into the company’s background and reviews.
- Seek Advice: Talk to certified financial advisors before investing.
How to Report Investment Scams?
If you suspect a Ponzi scheme or investment fraud, act fast:
- SEBI: File a complaint through the SCORES platform.
- Local Police: Register a complaint at your nearest station.
- Consumer Forums: Approach state consumer forums for guidance.
- Enforcement Directorate: Contact the ED for cases involving suspected money laundering.
- Crime Reporting Portal: File an online complaint at the National Cyber Crime Reporting Portal.
Prompt reporting can help authorities act quickly and prevent more victims.
Lessons From the IMA Scam
The IMA Ponzi scam teaches us important lessons:
- Due Diligence is Critical: Always verify before investing.
- Financial Literacy Saves Money: Understand investments, returns, and risks.
- Regulation Protects Investors: Avoid unregulated schemes, no matter how attractive they seem.
- Spread Awareness: Educate your community to prevent collective loss.
Need Help?
If you’ve been affected by the IMA Ponzi Scam, you can register with us for legal assistance and guidance to recover your funds.
Conclusion
The IMA Ponzi scam is a stark reminder that trust must be earned, not assumed. While legal proceedings continue and some recovery is underway, investors must learn from this incident.
By staying vigilant, recognizing red flags, and reporting suspicious schemes, you can protect yourself and your community from scams like IMA. Financial awareness isn’t optional—it’s essential.
