The investigation into the alleged ₹4,500 crore Shivam Associates scam has now been officially handed over to the CID, with the agency intensifying its probe into the large-scale financial fraud case linked to thousands of investors in Belagavi and other states.
Shivanand Neelannavar, owner of Shivam Associates, has been remanded to 10 days CID custody by the 2nd Additional Sessions Court, Belagavi.
CID lawyers told the court that transactions involving several thousand crores and nearly 35,000 investors were under investigation. The agency sought custody of Neelannavar for detailed questioning, stating that he would be taken to the CID office in Bengaluru as part of the investigation.
During the hearing, the judge asked Neelannavar about his health condition, to which he replied that he suffers from blood pressure issues. The court assured him that proper medical arrangements and medicines would be provided.
Neelannavar reportedly told the court that “35,000 people do not need money, they need me,”.
In response, the judge observed that it is the government’s responsibility to protect innocent investors and noted that many people in similar financial fraud cases had taken money and disappeared. The court remarked that such laws were brought in after learning lessons from past financial scams.
The court later ordered that Neelannavar be handed over to CID custody for 10 days and directed officials to ensure his safety and proper care during custody.
There was also an emotional moment outside the courtroom when Shivanand Neelannavar reportedly broke down in tears after seeing his brother while being escorted out by officials.
The Shivam Associates case involves allegations of illegal deposit collection by promising unusually high returns. Authorities suspect thousands of people, including retired defence personnel, invested money in schemes linked to the firm. CID is now expected to investigate financial transactions, investor records, properties, and interstate money movement connected to the case.