IMA: No stay on Appellate Authority action, says HC

The high court refused to grant an interim stay on the operation of the Appellate Authority in the IMA scam and issued notice to the government to file objections in three weeks.

Justice B Veerappa was hearing a writ appeal filed by IMA chief Mohammed Mansoor Khan, seeking abolition of the Appellate Authority for recovery of the property from IMA.

The advocate for the petitioner submitted that an interim stay should be given on the operation of the Appellate Authority, which is recovering IMA’s property, till the petition is disposed of.

However, the advocate for the government, Vijay Kumar Patil, said IMA cheated thousands of investors and the government has appointed the Appellate Authority to recover the property under the Karnataka Protection of Interest of Depositors in Financial Institutions Act, 2004. The stay will affect the investigation.

Allowing the contention of the government’ advocate, the bench refused to grant an interim stay on the operation of the authority.