The Belagavi district administration on Friday launched investigations into two more private investment firms following allegations that they collected crores of rupees from the public by promising unusually high monthly returns. The action comes in the wake of recent investigations into Shivam Associates, Appexx Bizcorp and Adityaraj Capital and is part of the administration’s ongoing crackdown on unauthorized investment schemes.
Acting on the directions of District Magistrate Mohammad Roshan, a joint team comprising officials from the Revenue Department, Cooperation Department and Police, led by Sub-Divisional Officer Shravan Kumar Naik, carried out simultaneous investigations at the offices of Growdhan LLP in Tilakwadi and City Index on Mahatma Phule Road. Officials examined financial records and other relevant documents during the exercise.
Investigators scrutinised financial transactions, investor records and related documents, with the verification process continuing late into the night.
According to Sub-Divisional Officer Shravan Kumar Naik, initial findings suggest that around 1,100 investors had deposited approximately ₹38 crore with Growdhan LLP. Officials believe these funds were accepted in the form of loans.
In the case of City Index, preliminary records indicate that nearly 1,500 investors had invested around ₹30 crore. The funds were reportedly mobilised through debentures. Although the company is said to be registered with SEBI, officials are examining its legal compliance, business operations and financial transactions in detail.
The preliminary investigation report on Growdhan LLP is expected to be submitted to the District Magistrate on Saturday. The inquiry into City Index will continue, after which a detailed report will be prepared and further legal action taken, officials said.
Over the past several days, the Belagavi district administration has intensified scrutiny of investment firms promising unusually high returns and is examining whether their operations comply with applicable laws and regulations.