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

News Snippets

  • MS Dhoni decides to take a two-month break, will skip West Indies tour but will not retire
  • Phagu Chauhan is the new Governor of Bihar while Ramesh Bais has been appointed as that of Tripura
  • Governors: Anandiben Patel shifted from Madhya Pradesh to Uttar Pradesh and Lalji Tandon from Bihar to Madhya Pradesh
  • Naga talks interlocutor RN Ravi appointed as Governor of Nagaland
  • Noted lawyer Jagdeep Dhankhar appointed as new Governor of West Bengal
  • 84 NDRF teams have been despatched to 23 states to tackle the flood situation
  • Three persons lynched in Bihar after being accused of cattle theft
  • Delhi police seize a consignment of 1500 kgs of heroin and busts a cartel of Afghanistan-Pakistan narcotics dealers with links to the Taliban
  • Supreme Court gives 9 more months to complete the Babri Masjid demolition case trial
  • Priyanka Gandhi not allowed to meet the families of the dead in the Sonabhadra firing, arrested
  • ICC inducts Sachin Tendulkar in [email protected]@@s Hall of Fame
  • Stock markets bleed for the second day. Sensex crashes 560 points
  • S Jaishankar, Minister of External Affairs, says Pakistan should release and repatriate Kulbhushan Jadhav immediately
  • Karnataka Governor Vajubhai Vala asks the Speaker to hold the trust vote latest by 1.30 pm today
  • The Government sends a list of 24 questions to mobile app company that runs video app TikTok seeking answers for anti-national and obscene content carried on the platform
Former Delhi CM and senior Congress leader Sheila Dikshit dies following a cardiac arrest. She was 81
oppn parties
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. Writes for a number of publications.

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.