The Directorate of Enforcement (ED), Mangaluru, conducted search operations on August 7, 2026, at multiple premises in Belagavi, Chikkodi and Nipani linked to M/s Shivam Associates, Shivanand Siddappa Neelannavar and other associated persons and entities.
The searches were carried out under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002.
The ED said it initiated its investigation based on an FIR registered by the Malamaruthi Police Station in Belagavi City under the Banning of Unregulated Deposit Schemes Act, 2019, and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004.
According to the FIR, members of the public were allegedly induced to invest money by promising them unusually high and assured returns.
The ED’s preliminary investigation indicates that Shivam Associates and its associated persons and entities allegedly mobilised substantial funds from a large number of investors. Analysis of bank accounts and other financial records has revealed extensive movement of funds through business, personal and intermediary accounts, including transfers to stock brokers, fixed deposits, related persons and other beneficiaries.
The agency said it has identified a financial nexus involving Shivam Associates, Shivanand Siddappa Neelannavar, Subhash Ramagouda Nandargi, Mahesh S. Neelannavar, Shivam Productions, Shivam Lifeline Pvt. Ltd., Shivam Sevaa (OPC) Pvt. Ltd. and other associated persons and entities.
The ED said its investigation found that Shivanand Siddappa Neelannavar allegedly lured members of the public by promising returns of 3% per month on their investments or deposits.
As per the agency’s findings, approximately ₹2,110.97 crore was collected from the public. Against this amount, repayments of approximately ₹333.89 crore have been identified during the search operations.
The ED said approximately ₹1,777.08 crore of the alleged proceeds of crime remains untraced.
The investigation also found that a 0.5% commission was allegedly paid to leaders or commission agents who were involved in bringing investors into the scheme.
During the searches, the ED said it recovered and seized various incriminating documents and digital evidence relating to the alleged generation, movement, layering and parking of proceeds of crime.
Records relating to monetary transactions, diversion and parking of funds, investments in immovable properties and dealings with various persons and entities associated with the accused were also recovered and seized.
The ED said the documents and digital evidence seized during the searches are currently being examined as part of the ongoing investigation.