Belagavi (Karnataka), Aug 8 (IANS) The Enforcement Directorate (ED) continued its search operation for the second consecutive day on Saturday in connection with the alleged multi-crore financial fraud involving Shivam Associates owner Shivanand Neelannavar.
The ED officials continued inspecting the M.S. Tower premises located in Shivabasavanagar in Belagavi city in North Karnataka. The search operation is being conducted under CRPF security cover, with ED teams from Goa and Mangaluru involved in the operation.
The document verification and examination process, which began on Friday, continued on Saturday as officials scrutinised documents and other materials recovered during the searches.
The ED has registered an FIR in connection with alleged illegal money transfers linked to the case. Following the registration of the case, the agency launched searches at premises connected to Neelannavar.
Neelannavar was not present at his residence when the ED team arrived for the search. His wife and brother were brought to the premises, and officials conducted a detailed inspection of the property and documents.
The ED had earlier conducted simultaneous searches at three locations in Belagavi district in connection with the alleged fraud. Searches were carried out at M.S. Tower Apartment in Shivabasavanagar, Neelannavar’s residence in Badakundri village and the residence of his business partner Subhash Nandaragi in Chikkodi.
The case involving Shivam Associates had sent shockwaves across Karnataka, with the company accused of collecting money from more than 40,000 investors.
On May 15, the district administration and police conducted a raid on the company following allegations that it was illegally collecting deposits and attracting investors by promising lucrative returns. A case was registered, and Neelannavar was subsequently arrested.
According to the CID investigation, around Rs 2,400 crore was allegedly collected from more than 40,700 people. Of this, around Rs 540 crore was reportedly invested in the stock market, resulting in an estimated loss of Rs 170 crore.
The investigation was later handed over to the CID. Neelannavar, who was arrested in connection with the case, is currently out on bail.
With the ED now investigating the alleged financial irregularities, the agency is focusing on the money trail and transactions linked to the funds collected from investors.
–IANS
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