Shivanand Neelannavar, the prime accused in the case concerning Belagavi-based Shivam Associates that is involved in a ponzi scheme, was remanded in judicial custody by a Mangaluru court till September 2.The Enforcement Directorate (ED), which is investigating the case, had arrested Neelannavar and produced him before the Third Additional District and Sessions Court, Mangaluru, on August 14. After inquiry, the ED sleuths produced him before the court on Monday.ED Special Public Prosecutor Rajesh K.G., filed objection to the regular bail application filed by Neelannavar. He contended that the ED was still in the process of collecting evidence, including digital evidence, related to the ponzi scheme. Hence, releasing Neelannavar would hamper the investigation. The court posted further hearing on the bail application to August 28.Neelannavar faces allegations of collecting over ₹2,100 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. It is further alleged that the money collected from thousands of investors was illegally transferred for films, real estate, fisheries, and other businesses, without any permits. The ED had launched an investigation under the Prevention of Money Laundering Act following suspicion of illegal money transfer in the transactions of investor money. Published - August 24, 2026 10:38 pm IST