Bengaluru: The suspected suicide of a senior IAS officer in Karnataka has once again brought into focus a Rs 4,000 crore Ponzi scam that came to light in the state last year and is believed to have robbed as many as 20,000 people of their savings.
B.M. Vijay Shankar was found hanging at his Bengaluru residence Tuesday evening. He was one of multiple Karnataka government officers facing a CBI investigation for allegedly facilitating the IMA Ponzi scam in exchange for crores in kickbacks from suspected mastermind Mohammed Mansoor Khan.
Khan was arrested last year. Shankar served as Bengaluru Urban Deputy Commissioner when he came under the lens for his alleged role in the scam. A special investigation team (SIT) established by the erstwhile Kumaraswamy government had allegedly found a clear “money trail” to prove Shankar and Bengaluru North Assistant Commissioner L.C. Nagaraj received Rs 1.5 crore from Khan to cover his crime.
The case was handed over to the CBI by the B.S. Yediyurappa government.
A government official told ThePrint that the CBI had “recently sought permission to indict Shankar and two others” in connection with the IMA Ponzi scam case.
“Shankar had received a notice from the CBI to be questioned on 12 June. When he did not respond to the notice, another reminder was sent,” said the official. Shankar had spent a short time in jail in connection with the scam last year, and the government official suggested the CBI investigation may have driven Shankar to end his life.
Speaking to ThePrint, Bengaluru Police Commissioner Bhaskar Rao said Shankar’s death is under investigation and they are taking into consideration all factors that could have played a role.
“We are investigating it as an unnatural death. We have deputed an inspector to handle the case as it deals with the death of a senior official. We are ensuring that a thorough investigation is conducted and seek the cooperation of the family during investigation,” Rao said.
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Under the lens
IMA, run by Khan, a businessman who had returned from the Gulf, allegedly exploited people’s faith in Islam to swindle close to Rs 4,000 crore. The participants of his schemes, which promised returns of 10 to 12 per cent on investments, received money for several months before it all stopped in January 2019.
You can read all about the scam and its impact on victims in this ThePrint report from June 2019.
An investigation was launched as several alleged victims filed complaints with Bengaluru police against Khan. The CBI investigation has reportedly revealed since that government officials ignored repeated RBI alerts regarding IMA.
Shankar was among the officers tasked with the responsibility of submitting a report on IMA, which he handed over to Nagaraj, SIT officials told ThePrint.
The two are accused of providing a favourable report on the IMA group despite its fraudulent activities, they said.
The SIT investigation revealed that the duo allegedly received a bribe of Rs 1.5 crore for this, with the money believed to have been routed through a village accountant turned mediator named Manjunath. “The SIT found a clear money trail leading to Shankar,” said an official of the SIT.
The SIT arrested Shankar in July 2019, but he was released on bail later that month. He was subsequently suspended. Since the CBI took over, it has sought the Karnataka government’s sanction to prosecute many government officials, including two senior IPS officers (sanction granted this January) and Shankar.
The CBI has alleged that the suspects “blatantly and dishonestly favoured” Khan and allowed him to continue his activities.
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‘Appeared cheerful’
Shankar was a promotee from the Karnataka Administrative Service to the IAS. His suspension was revoked recently and he was posted as the additional mission director for the Sakala Mission, a programme of the Karnataka government meant to standardise and simplify citizen service delivery systems.
Police sources said Shankar attended meetings through the day Tuesday at his office, which is located at VV Towers in Bengaluru. He reached his residence at Jayanagar 4 T Block around 7 pm. Shankar was alone at home at the time since his wife and children were visiting relatives.
When they returned at 8.30 pm, they found his room door closed. The wife panicked when he did not open the door. When it was forcibly opened, Shankar was found hanging.
“We spoke to his colleagues and they all said he did not show any signs of depression or of the extreme step he was about to take. Rather, some of them said he was quite normal and even cheerful, “ a senior police officer said.
Reports, however, suggest that the officer was suffering from depression and was undergoing counselling.
Also Read: Karnataka govt gives CBI permission to indict 2 IPS officers in multi-core IMA ponzi scam