The investigation into the alleged Shivam Associates financial scam has intensified, with Belagavi Police Commissioner Bhushan Borase indicating that the case may soon be recommended for transfer to the CID due to its interstate links and large financial scope.
Addressing a joint press conference along with Deputy Commissioner Mohammad Roshan on Saturday, officials said the case involves alleged illegal deposit collection from nearly 35,000 to 45,000 people by promising unusually high returns of around 36% annually.
What Authorities Found
Officials said raids were conducted at multiple locations linked to Shivam Associates owner Shivanand Neelannavar, including his residence, offices, and apartment premises in Belagavi.
During the searches, police and district officials reportedly seized:
- Thousands of cheques and bond papers
- Depositor lists
- Bank account details
- Investment documents
- Laptops and mobile phones
- Digital financial transaction records
Deputy Commissioner Mohammad Roshan described it as a “serious case” involving inter-district and interstate financial transactions. He stated that documents worth over ₹50 crore in bonds and cheques were found during inspections.
FIR Registered Under KPID and BUDS Acts
Police have registered a case against Shivanand Neelannavar under:
- Karnataka Protection of Interest of Depositors (KPID) Act
- Banning of Unregulated Deposit Schemes (BUDS) Act
Officials alleged that Shivam Associates collected deposits from the public without approvals or licences from agencies such as RBI, SEBI, or the Cooperative Department.
The Deputy Commissioner said a detailed 150-page investigation report prepared by the Belagavi Sub-Divisional Officer has already been submitted to the state government. A State Nodal Officer is expected to be appointed next, with powers to seize properties and freeze bank accounts linked to the case.
“People Were Tempted by High Returns”
Officials said many investors were attracted by promises of high monthly payouts. According to police, investors were allegedly offered ₹3,000 per month for every ₹1 lakh invested, creating trust among depositors. Police also said blank cheques were allegedly issued to investors as assurance.
Authorities believe several people sold land and invested money into the scheme expecting guaranteed returns.
How the Investigation Started
Police Commissioner Bhushan Borase said authorities had been monitoring Shivam Associates for nearly a month after anonymous complaints were reportedly sent to SEBI and CID. Verification with RBI reportedly showed that Shivam Associates was not registered as an authorised financial institution.
Officials also said the investigation was triggered further after controversial public speeches made by Neelannavar went viral on social media.
Who Is Shivanand Neelannavar?
According to police, Neelannavar originally worked as a driver and later operated small businesses including an ice cream venture before entering the investment business around 2016. Investigators claim he gradually expanded operations using websites, social media campaigns, public events, and local influence networks.
He also produced the 2022 Kannada sports action-drama film Champion under S.N. Production.
Police said Neelannavar is currently not fully cooperating with the investigation, and further custodial interrogation may take place.
Public Asked to Stay Alert
Deputy Commissioner Mohammad Roshan said a special scam monitoring cell had already been formed in the DC office on April 29 to track illegal deposit schemes and financial frauds under the KPID and BUDS Acts.
He urged citizens not to fall for schemes offering unrealistic or guaranteed returns and advised people to verify whether firms are authorised by RBI or other financial regulators before investing.