The RBI had first issued an alert against IMA Jewels and Mansoor Khan in 2015.
The RBI had first issued an alert against IMA Jewels and Mansoor Khan in 2015.(Photo: Altered by The Quint)
  • 1. What is Islamic Banking or Halal Banking?
  • 2. Is there Islamic Banking in India?
  • 3. So, is Practising Islamic Banking Legal in India?
  • 4. How is Islamic Banking Used for Ponzi Schemes?
  • 5. How Many Ponzi Schemes Have Been Reported?
Explained: How Islamic Banking is Used in Scams Like IMA Jewels

One missing scamster, Rs 2,000 crore at stake, and over 30,000 complaints filed within a week – the scam surrounding I Monetary Advisory (IMA) is one of the biggest financial frauds Bengaluru has witnessed in the recent past.

Using the loopholes in the law, the company’s chairman Mohammed Mansoor Khan had managed to evade scrutiny, including two RBI notices, for several years. But, eventually, Khan’s malpractices resulted in him absconding with the investments raised.

Even though the IMA scam is one of around 20 ponzi scams out of Bengaluru, at the heart of a scam is a clever manipulation of religious feelings and greed, using a banking system based on Islamic beliefs called ‘halal investment’ or ‘Islamic banking.’

What exactly is this religion-accepted banking system? And how does it work?

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