Karnataka Police are ramping up their investigation into a massive fraud case amounting to Rs 4,500 crore allegedly involving social activist Shivananda Neelannanavar. The accused, who was apprehended in Belagavi city, faces charges of embezzling funds invested by the public and former military personnel.
Shivananda Neelannanavar, the proprietor of Shivam Associates, stands accused of delivering provocative speeches, hosting large events, and offering high-interest rates to lure investments. Additionally, he is alleged to have vigorously promoted his schemes on social media. A video of him asserting his ability to become Chief Minister at will has circulated widely post his arrest.
Following raids on his offices in Shivabasava Nagar, where financial documents and investment records were seized, Shivananda Neelannanavar was detained late at night. Authorities have sealed his offices and residence, with a report submitted to the Deputy Commissioner.
Preliminary findings suggest that the accused amassed nearly Rs 4,500 crore from approximately 40,000 to 45,000 individuals. Calls have been made for the case to be transferred to a specialized investigative body like the Criminal Investigation Department (CID).
It has been uncovered that the accused did not adhere to RBI regulations when accepting substantial investments and failed to maintain proper documentation. Most transactions were reportedly conducted online. Recognizing the gravity of the situation, Belagavi Deputy Commissioner Mohammed Roshan has initiated an inquiry under the Depositors’ Interest Protection Act.
In the midst of the crackdown, the accused released an audio message reassuring investors of a swift resolution within a few days and specifically urged female investors not to panic. Police are continuing their investigations into the matter.
