The I Monetary Advisory (IMA) scam is one of the major financial fraud cases in Karnataka. The Bengaluru-based investment company attracted thousands of investors by promising attractive returns through business activities such as gold trading, bullion investments and other ventures.
Many investors trusted the company because it presented its investment plans as being compliant with Islamic financial principles. People invested their life savings, retirement funds and family savings, hoping to receive regular returns.
However, in June 2019, the company stopped making payments, its offices became inaccessible, and thousands of investors began worrying about their money.
The collapse of IMA became a major financial scandal in Karnataka and triggered investigations by the Special Investigation Team (SIT), Central Bureau of Investigation (CBI) and Enforcement Directorate (ED).
What Was the IMA Scam?
I Monetary Advisory (IMA) was a Bengaluru-based financial and investment company promoted by Mohammed Mansoor Khan.
The company operated through several entities under the IMA Group and collected money from the public through different investment plans.
Investors were attracted by promises of high returns, reportedly ranging between 36% and 64% annually, depending on the scheme and the claims made to investors.
The company promoted different plans, including:
- Monthly investment and profit plans.
- Marriage savings plans.
- Education investment plans.
- Gold and bullion trading investments.
- Other business-linked investment schemes.
The company attracted a large number of investors, particularly from Karnataka.
Who Was Mohammed Mansoor Khan?
Mohammed Mansoor Khan was the founder and managing director of I Monetary Advisory.
He was the central figure in the investigation into the collapse of the IMA Group.
The investigation examined how money was collected from investors, how the funds were used, and whether investor money was diverted into other businesses and properties.
He was arrested in July 2019 after returning to India from Dubai.
The CBI and ED subsequently investigated different aspects of the case.
How Did the IMA Scam Come to Light?
The crisis became public in June 2019 when investors started facing difficulties withdrawing their money and receiving promised returns.
The company’s founder, Mohammed Mansoor Khan, disappeared from Bengaluru and released an audio message in which he made allegations against several politicians and other individuals.
His disappearance created panic among investors.
Thousands of people gathered to seek information about their investments and demanded that the authorities take action.
The Karnataka government subsequently formed a Special Investigation Team (SIT) to investigate the matter.
How Much Money Was Involved in the IMA Scam?
The IMA case involved thousands of crores of rupees.
Investigators estimate it at roughly Rs 4,000 crore, with over a lakh investors, most of them from the Muslim community, allegedly affected. It is among the biggest Ponzi schemes India has seen, and one that exposed uncomfortable links between private fraud, politics and the officials meant to regulate it.
These figures indicate the enormous financial impact of the case on ordinary families.
The Warning Signs Were There Years Earlier
The records show the company was on the radar well before the collapse:
- In April 2017, the Revenue Department searched Khan’s properties, and he had reportedly not filed income tax returns since 2015.
- On 16 November 2018, an Assistant Commissioner issued a forfeiture notice against IMA.
- In December 2018, Khan formally replied that the company did not accept deposits, dealt in precious stones and metals, needed no RBI or SEBI licence, was a Limited Liability Partnership with partners rather than depositors, and so was outside the Protection of Interests of Depositors Act.
His position was that IMA was not a deposit-taking scheme at all. Investigators and later chargesheets say otherwise.
The CBI Takes Over and the Case Widens
In August 2019, at the request of the Karnataka government, the CBI took over the investigation. It registered its first FIR on 30 August 2019 and filed its first chargesheet on 7 September 2019, against Khan and others including directors, an auditor and group companies. It has since registered four cases in total, and the probe has been monitored by the Karnataka High Court.
The more consequential development was that the investigation moved beyond the company itself:
- Officials. In October 2020, the CBI filed a supplementary chargesheet against 28 accused, including senior IPS officers and other police and revenue officials. It alleged that officials closed enquiries into complaints against IMA instead of acting on them. The state government separately suspended three police officers accused of protecting Khan’s interests rather than investors’.
- Alleged bribe. A Bengaluru Development Authority executive engineer was charged with allegedly accepting Rs 5 crore to help secure a clean chit for IMA from the Revenue Department.
- Politicians. Before fleeing, Khan had publicly accused then-MLA R. Roshan Baig of taking Rs 400 crore from him. The CBI later named Baig in a supplementary chargesheet, and he was granted bail by a special CBI court in December 2020. Baig has contested the allegations.
- Raids. The CBI and ED conducted searches across Karnataka and Uttar Pradesh, and questioned several police and IAS officers.
Latest IMA Scam Updates – 2026
The IMA case continued to remain in the news during 2026.
May 2026 – Court rejects discharge applications
On May 17, 2026, reports stated that a special court in Bengaluru rejected discharge applications filed by four IMA directors.
The court observed that there was sufficient prima facie material for the case to proceed to trial. The allegations included the mobilisation of public deposits and diversion of funds towards properties.
This was an important development for investors seeking accountability.
September 2026 – Investors demand further investigation
In September 2026, the Aggrieved IMA Investors’ Forum submitted a representation to the Karnataka Governor seeking an independent CBI investigation into alleged financial links involving Karnataka minister BZ Zameer Ahmed Khan.
The representation referred to statements attributed to Mohammed Mansoor Khan during ED proceedings.
These are allegations and demands for investigation, not a judicial finding of guilt. The minister’s response should also be considered before drawing conclusions.
What Happened to the Investors’ Money?
One of the biggest concerns for investors is the recovery of their hard-earned money.
The Karnataka government initiated steps to identify, attach and liquidate properties associated with the IMA Group.
In February 2025, the Karnataka government announced plans to auction IMA properties to compensate affected depositors.
By that time, the government reported that 60,902 victims had received approximately ₹87.43 crore in compensation through different relief distributions.
The Enforcement Directorate also reported that assets worth approximately ₹294 crore had been restored for the purpose of victim compensation following a Karnataka High Court order.
However, the recovery of assets does not automatically mean that every investor has received their full investment back.
When Will IMA Investors Get Their Money Back?
The I Monetary Advisory scam is not just a financial fraud case. It is a painful experience for thousands of families who trusted the company with their hard-earned savings.
Even after several years of investigations, asset recovery and court proceedings, investors continue to seek answers.
The most important questions remain:
- When will all eligible investors receive their money?
- How much money can be recovered through the auction of attached properties?
- Will all those found responsible face legal consequences?
- How long will the remaining court proceedings take?
Investors deserve transparency, accountability and timely justice.
The IMA case should serve as a warning to everyone: never risk your family’s savings simply because an investment company promises extraordinary returns.
