Deputy Commissioner and District Magistrate Mohammad Roshan has ordered a detailed enquiry and investigation under the Karnataka Protection of Interest of Depositors in Financial Establishments (KPID) Act, 2004, into the activities of Shivam Associates (Accumem), a firm operating from Shivabasav Nagar in Belagavi.
The official order dated May 14, 2026, cites multiple reasons for initiating the probe, including suspicious deposit collection activities, advertisements and promotions allegedly promising unusually high returns, and a police report highlighting suspected financial irregularities.
According to the order, market intelligence inputs received by the district administration indicated that the firm was allegedly collecting deposits from the public under various schemes while assuring abnormal returns and benefits. The administration also noted that advertisements circulated through print, electronic, and social media had raised concerns regarding the genuineness and legality of the activities.
A police report submitted by the Commissioner of Police, Belagavi, on May 13, 2026, reportedly referred to alleged fraudulent financial activities and possible defaults affecting depositors.
Invoking powers under Sections 3 and 4 of the KPID Act, the Deputy Commissioner has directed the Assistant Commissioner, Belagavi Sub-Division, to conduct a comprehensive investigation into the affairs of the establishment.
The order authorises officials to verify the nature of deposit collection schemes, inspect financial transactions, examine movable and immovable assets, scrutinise bank accounts, and collect documents, electronic records, promotional materials, and account books linked to the firm.
Authorities have also been empowered to carry out search, inspection, seizure, freezing of accounts, and attachment proceedings wherever required, in accordance with the law.
The investigation team has been instructed to ascertain whether the establishment failed to return deposits, defaulted on promised returns, or acted in a manner detrimental to the interests of depositors.
Police authorities and other concerned departments have been directed to extend full cooperation during the enquiry process.
The development assumes significance as several citizens, including ex-servicemen, are believed to have invested substantial savings in schemes linked to the firm.
Officials have urged the public to remain cautious and verify investment schemes thoroughly before investing money, especially those offering unusually high or “guaranteed” returns.