It was argued in court that the interrogation of the accused is likely to produce important information about other people involved in the fraud case and the money transactions.
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Authorities of the Directorate of Enforcement (ED) have taken Shivanand Neelannavar, the prime accused in the case concerning Shivam Associates, a Belagavi-based entity allegedly running a Ponzi scheme, into custody.The accused was produced before a Belagavi court on Friday. The judge ordered the accused to be remanded in ED custody for 12 days for questioning.Mr. Neelannavar faces serious allegations of collecting over ₹2100 crore from the public by promising exorbitant interest rates but failing to keep his promise. The firm had no permission or clearance from any agency, including the RBI and the SEBI.ED lawyers told the court that it was necessary to trace the complete details of the financial transactions in the case, trace the source of the money collected from the investors, and trace its transfer network. It was argued that the interrogation of the accused is likely to produce important information about other people involved in the fraud case and the money transactions.The case also alleges that the money collected from thousands of investors was illegally transferred elsewhere, such as films, real estate, fisheries and other businesses, without any permits.ED authorities had launched an investigation under the Prevention of Money Laundering Act following suspicions of illegal money transfer in the transactions of investor money.He was arrested earlier by the Belagavi police, who initiated an investigation along with officers of the Revenue, Cooperation and Sub-Registrar Offices. The case was transferred to the CID later. ED officers from Mangaluru conducted a search and seizure operation at the houses and offices of Shivannad Neelannavar a few days ago.Belagavi police officers said that they had found that depositors from Maharashtra, Chhattisgarh and Goa had invested money in Shivam Associates. “The money was collected after promising investments in the stock market. We found evidence to show that the firm suffered huge losses in the stock market, but Shivanand Neelannavar never showed these losses to the depositors. He began using a fresh influx of money from new depositors to pay dividends to old depositors. He led a luxurious life by purchasing palatial houses, costly cars, and going on holidays. He also funded the production of films and engaged in some other business ventures,’’ the officer said. Published - August 14, 2026 07:12 pm IST
