The Enforcement Directorate (ED) on Friday conducted searches at premises linked to Belagavi-based Shivam Associates managing director Shivanand Neelannavar, who is accused of collecting thousands of crores of rupees from investors by allegedly promising unusually high returns.
ED teams from the Mangaluru and Goa units searched Neelannavar’s apartment in Shivabasava Nagar and premises linked to his close associates. Officials also questioned his wife, Sangeeta, and son-in-law, Sanju, during the operation.
The searches are part of a parallel money-laundering investigation into the alleged financial irregularities surrounding Shivam Associates. The action comes while the Crime Investigation Department (CID) is investigating a case registered under the Banning of Unregulated Deposit Schemes (BUDS) Act.
Neelannavar was arrested by the Belagavi police a few months ago over allegations that he was operating a Ponzi scheme. Preliminary investigations by the police, revenue and cooperation department officials indicated that more than ₹3,500 crore had allegedly been collected from nearly 40,000 investors, with returns of over 35% reportedly promised.
The case was subsequently transferred to the CID for a detailed investigation.
As part of Friday’s operation, the ED also searched properties linked to Neelannavar’s close associates, including a residence in Badkundri village of Hukkeri taluk and another property in Chikkodi.
The first round of searches in the case was conducted on May 15 under the supervision of the Belagavi Assistant Commissioner. A case was later registered at the Malmaruti police station before being handed over to the CID.
The ED searches indicate a widening of the investigation into the alleged financial transactions, with the agency examining the money trail and possible laundering of funds while the CID continues its probe into the alleged deposit scheme.