In a major development in the multi-crore Shivam Associates scam, officials of the CID brought Shivam Associates chief Shivananda Neelannavar from Bengaluru to Belagavi for further interrogation in the alleged Rs 4,500 crore investment fraud case.
Neelannavar is currently being questioned at the Malmaruti Police Station. With the 10-day CID custody granted by the court ending on May 27, officials are expected to produce him before the court shortly. Since the court is scheduled to remain closed on Tuesday, preparations were reportedly being made to present him before the judge on Monday itself.
The CID has meanwhile widened its investigation and issued notices to Neelannavar’s wife, actor R Abhilash and business associate Subhash in connection with the case.
Following the notices, all three appeared before CID officers at the Malmaruti police station, where investigators are believed to be gathering crucial details related to the alleged financial fraud.
Luxury Vehicles Worth Crores Seized
As part of the ongoing probe, CID officials have seized several luxury vehicles allegedly purchased using investors’ money. The seized vehicles reportedly include high-end models such as the Land Rover Defender, Mercedes-Benz AMG and Toyota Vellfire, together valued at nearly Rs 5 crore.
Officials also seized a Hyundai Verna allegedly used by Neelannavar’s wife.
CID officers reportedly brought Neelannavar to his residence in Shivabasava Nagar as part of the investigation process before carrying out the seizure of the vehicles. Investigators also conducted a detailed inspection of the residence, examined several records and collected documents believed to be relevant to the case.
The seized vehicles were later shifted to the Malmaruti police station.
Wider Crackdown on Suspected Ponzi Operations
The CID has also issued notices to several individuals who were allegedly in contact with Neelannavar or involved in business dealings linked to Shivam Associates. Investigators are now examining financial transactions and possible connections to the alleged fraud network.
The investigation has entered a crucial phase, with thousands of investors and residents closely tracking developments in one of the biggest alleged financial scams reported from the region.
In the wake of the case, the Belagavi district administration has established a dedicated fraud prevention cell at the Deputy Commissioner’s office under the KPID and BUDS Acts to monitor and curb illegal financial activities.
A district-level coordination committee has also been formed to track firms suspected of operating Ponzi schemes by luring investors with promises of unusually high returns.
Officials said the newly formed cell will monitor social media inputs, media reports, public complaints and anonymous tips to identify suspicious financial activities at an early stage.