IMA Ponzi scheme case: A multi-crore scheme run by Karnataka-based I-Monetary Advisory (IMA) and its group entities allegedly duped lakhs of people by promising higher returns using Islamic ways of investment. The Central Bureau of Investigation (CBI) is currently investigating the case and has filed at least three FIRs. (File image of the CBI headquarters)
The CBI has registered an FIR against Deccan Chronicle Holdings Ltd, its Chairman T Venkatram Reddy and others for allegedly cheating the United India Insurance Company (UIIC) Ltd of Rs 30.54 crore, officials said here today.
A Balasubramanian (former deputy general manager of UIIC's investment department, Chennai) and K L Kunjilwar (ex-chief manager) have also been booked along with SEBI-approved rating agency CARE - represented by its CEO Rajesh Mokashi, and IDFC - represented by its CFO Sunil Kakkar.
It is alleged that as part of the criminal conspiracy, Balasubramanian and Kunjilwar made investments in short term unsecured redeemable non-convertible debentures issued by DCHL in 2011 which was not repaid by, causing a loss of Rs 30.54 crore to the public sector insurer, they said.
In pursuance of the criminal conspiracy, between July to October, 2011, three office notes were put up by K L Kunjilwar for investment of Rs 10 crore each in 11.25 per cent unsecured non-convertible debentures issued by Deccan Chronicle Holdings Ltd for purchase of short-term unsecured debentures with 364 days maturity.
It is alleged that in doing so the proposal was not analysed in detail and was approved by A Balasubramanian, the then DGM of UIIC.
"The investments were made in three different occasions deliberately in order to by pass the investment committee of UIIC. Thus UIIC invested Rs 30 crore in DCHL. UIIC had relied on the ratings awarded by CARE Ratings Limited, a SEBI approved rating agency," the FIR alleged.
The CBI has alleged that the UIIC had not done any separate risk analysis or due diligence apart from CARE rating P1+.
"It has not obtained any appraisal report from any financial institution. It was purchased through IDFC, sole arranger. The entire debenture issue was made under private placements through the sole arranger IDFC Limited," it alleged.
The agency has said that at the time of investment in the year 2011, the CARE rating was PR1+ which was downgraded drastically to D within a short span of one year.
It is alleged that Deccan Chronicle Holdings gave three cheques of Rs 10 crore each which were dishonoured, they said.