Investors lost Rs 5,685 cr in state falling prey to ponzi schemes

News Karnataka

Investors lost Rs 5,685 cr in state falling prey to ponzi schemes

Investors lost Rs 5,685 cr in state falling prey to ponzi schemes

Bhavana S   ¦    Jun 12, 2019 12:42:49 PM (IST)

Investors lost Rs 5,685 cr in state falling prey to ponzi schemes-1

Bengaluru: The IMA scam, which hit over 10,000 families across the state has now opened a can of worms. According to an estimation, in the last five years between 2013 and 2018, investors lost Rs.5,685 cr in various financial frauds reported from the state.

According to the senior police officers who are monitoring the IMA scam, 18 companies are blamed for cheating the poor investors-depositors. "These companies are not registered with the RBI or any government agencies. The promoters go absconding one night locking the companies. Generally they get bail in a few days as most of the time they don't leave any witness or proof. The receipts they issue are fake and in the name of some other companies," explained an officer.

According to the police, the only solution for this is strengthening the formal banking system and creating jobs. "Most of the people who lose money are those from poor families who wanted to double the interest to run family. So the government must think about alternatives," he said.