In a significant development in the alleged Rs 4,500 crore Shivam Associates investment fraud case, Shivanand Neelannavar, the prime accused, has been granted conditional bail by the 93rd City Civil and Sessions Court in Bengaluru.
The court granted bail on a personal bond of Rs 3 lakh and imposed conditions, including a restriction on leaving the country without permission.
Neelannavar, who is currently lodged in Hindalaga Central Prison, is expected to be released on Monday after completion of the required legal formalities.
The owner of Shivam Associates was arrested following allegations that he collected thousands of crores of rupees from investors by promising unusually high returns without obtaining the necessary approvals from regulatory authorities such as the Reserve Bank of India and the Securities and Exchange Board of India.
According to the investigation, investors were allegedly lured with promises of high interest rates, leading to deposits amounting to approximately Rs 4,500 crore over several years.
The case is currently being investigated by the Economic Offences Wing of the Criminal Investigation Department under provisions of the Karnataka Protection of Interest of Depositors (KPID) Act.
The CID has earlier stated that more than 40,000 investors are linked to the scheme and has traced assets worth hundreds of crores, including bank deposits, real estate, gold and luxury vehicles allegedly acquired using investors’ funds.
While bail has been granted, the investigation into the financial transactions, asset recovery process and identification of beneficiaries continues. Authorities have maintained that efforts are underway to maximize recovery of assets for eventual distribution to eligible depositors under the provisions of the KPID Act.
The granting of bail is likely to be closely watched by thousands of investors across Karnataka and Maharashtra who are awaiting progress in the recovery of their deposits.