Belagavi, Aug 11 (IANS) The Directorate of Enforcement (ED), Mangaluru, Karnataka, has conducted search operations at various premises in Belagavi, Chikkodi and Nipani linked to Shivam Associates, Shivananad Siddappa Neelannavar and other associated persons and entities in connection with an alleged investment fraud and money‑laundering case.
The searches were conducted on August 7 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the ED said in a press release issued on Tuesday.
The ED initiated the investigation based on an FIR registered by Malamaruthi Police Station in Belagavi City under the Banning of Unregulated Deposit Schemes Act, 2019, and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004.
According to the FIR, members of the public were allegedly induced to invest money on the promise of abnormally high and assured returns.
The ED’s investigation has found that Shivam Associates and its associated persons and entities allegedly mobilised substantial funds from a large number of investors. Preliminary analysis of bank accounts and other financial records indicated extensive movement of funds through business, personal and intermediary accounts, including transfers to stock brokers, fixed‑deposit accounts, related persons and other beneficiaries.
The agency said it had identified a financial nexus among Shivam Associates, Shivananad Siddappa Neelannavar, Subhash Ramagouda Nandaragi, Mahesh S. Neelannavar, Shivam Productions, Shivan Lifeline Pvt. Ltd., Shivam Sevaa (OPC) Pvt. Ltd. and other associated persons and entities.
Analysis of bank accounts and financial records allegedly revealed extensive and interconnected movement of funds among these entities.
The investigation further revealed that Shivananad Siddappa Neelannavar allegedly lured members of the public by promising a return of three per cent per month on their investments or deposits. The ED said he had accumulated approximately Rs 2,110.97 crore from the public.
Of this amount, repayments totalling approximately Rs 333.89 crore have been identified during the search operation, according to the agency. Consequently, proceeds of crime amounting to approximately Rs 1,777.08 crore are yet to be traced, the ED said.
The agency also found that a commission of 0.5 per cent was allegedly paid to leaders or commission agents who channelled members of the public into making investments.
During the search operations, the ED recovered and seized various incriminating documents and digital evidence relating to the alleged generation, movement, layering and parking of proceeds of crime.
The searches also resulted in the recovery of records relating to monetary transactions, diversion and parking of funds, investments in immovable properties and dealings with various persons and entities allegedly associated with the accused.
The ED said the material and digital evidence recovered during the searches is being examined and that further investigation is underway.
–IANS
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