Following the major controversy surrounding Shivam Associates and allegations of cheating depositors, the Belagavi district administration has now identified four more suspected Ponzi companies operating in the district, Deputy Commissioner Mohammad Roshan said on Monday.
Speaking to the media in Belagavi, the Deputy Commissioner said that a special fraud monitoring cell had been established at the Deputy Commissioner’s office last month under the provisions of the KPID and BUDS Acts to track and act against fraudulent financial schemes.
He stated that the district administration has been empowered at the district level to investigate such cases, following earlier studies and discussions held under the Karnataka Protection of Interest of Depositors (KPID) framework during 2025. A district-level committee has also been constituted for coordinated action.
Roshan said the administration is actively gathering information from multiple sources, including social media reports, media coverage, direct complaints, and even anonymous tips.
“We have received several complaints from across the district. Discussions have also been held with the City Police Commissioner. We are currently examining four more suspected Ponzi companies. One among them has reportedly promised 5% interest returns,” he said, adding that action against these firms would be initiated shortly.
The Deputy Commissioner revealed that the City Police Commissionerate is presently carrying out a digital investigation into the suspected firms. Strict legal action will follow once the investigation report is submitted, he added.
Warning the public against unrealistic investment promises, Roshan said that even major banks are unable to offer annual returns of 9% pa, and people should avoid falling prey to schemes promising unusually high profits.
“If money is invested in such companies, there is no guarantee of safety. Our aim is to make Belagavi district free from Ponzi and fraudulent financial operations,” he said.
Referring to previous complaints related to microfinance frauds involving women investors, Roshan said the administration is now determined to identify and dismantle such fraudulent networks at the grassroots level.
He further assured that the district administration would take responsibility for efforts aimed at recovering and returning depositors’ money wherever possible.