The Directorate of Enforcement (ED), Mangalore Sub-Zonal Office, has provisionally attached movable and immovable properties worth ₹427.16 crore belonging to Shivanand Siddappa Neelannavar and persons/entities associated with him under the Prevention of Money Laundering Act (PMLA), 2002.
The provisional attachment order was issued on October 30, 2026, in connection with the investigation into the alleged ₹2,459 crore Shivam Associates Ponzi scam, in which more than 35,000 investors were allegedly cheated with promises of assured returns of 3% per month.
The attached assets include fixed deposits worth ₹3.67 crore, bank balances of ₹44.37 crore, immovable properties worth ₹13.68 crore and share market holdings valued at ₹1.31 crore, along with other movable and immovable assets. The total attachment value is ₹427,16,37,165.
According to the ED, the investigation revealed that investor funds were diverted through multiple channels, including high-risk stock trading, cooperative credit societies, real estate investments and business ventures linked to the accused and their associates. Around ₹185.95 crore was lost in stock trading, while approximately ₹25 crore was routed through cooperative societies to create fixed deposits and secure loans for purchasing land parcels.
Modus Operandi of the Mega Ponzi Scheme
PMLA investigation unmasked an organized investment fraud orchestrated by the kingpin, Shivanand Siddappa Neelannavar, along with his associates, who illegally collected Rs. 2,459.49 Crore from more than 35,000 gullible public investors by luring them through false representations that promised abnormally high, assured returns of 3% per month alongside a 0.5% referral commission for introducing new investors, with Neelannavar prominently introducing these network referral agents as “leaders”.
The ED had initiated its investigation based on an FIR registered by Malamaruti Police Station in Belagavi under the BNS, Banning of Unregulated Deposit Schemes Act, 2019, and the KPID Act, 2004.
Shivanand Siddappa Neelannavar was arrested on August 13, 2026. A prosecution complaint against five persons and entities was filed on October 9, 2026, before the PMLA Court in Mangalore. Further investigation is underway.
During investigation, following movable-immovable properties amounting to ₹ 427,16,37,165/- belonging to Shivanand Siddappa Neelannavar and persons/entities associated with him was identified as having been acquired directly or indirectly from the Proceeds of Crime and have now been provisionally attached:
| Asset Category | Description / Coverage | Value Attached (₹) |
|---|---|---|
| (FDs) | Maintained across HDFC, ICICI, IDFC First, Kotak Mahindra, Ujjivan Small Finance, and local cooperative societies. | 3,67,77,79,386 |
| Bank Balances | Funds resting across 47 individual and corporate bank accounts held by the primary operators, family members, and associates. | 44,37,96,242 |
| Immovable Properties | 42 specific properties including agricultural plots, family bungalows, and developer apartment bookings. | 13,68,76,139 |
| Share Market Holdings | Remaining portfolio stock valuations actively frozen inside CDSL Depository accounts. | 1,31,85,398 |
| Total Value Attached | Movable and Immovable Assets Secured | 427,16,37,165 |
The investigation has revealed that the proceeds of crime were layered and diverted through multiple illicit channels, where substantial investor funds were gambled in high-risk stock trading resulting in net losses of Rs. 185.95 Crore. Furthermore, Rs. 25 Crore (Approx.) were routed through a complex web involving cooperative credit societies specifically Shreemata Co-operative Credit Society Ltd. and Dhanashree Multipurpose Co-op Society Ltd. to create fixed deposits that secured loans in the names of associates for purchasing land parcels. In addition to real estate investments, funds were channelled into close family bank accounts, including his wife Smt. Sangeeta and minor son Siddhant as well as connected business ventures such as M/s. Shivam Sevaa (OPC) Pvt. Ltd. (Rs. 19 Crore), Shivam Lifeline Pvt. Ltd., and Shivam Foods. The diverted funds were subsequently utilised for acquisition of movable-immovable properties and other business activities.