Mangalore, Aug 11 (IANS) Acting against the accused in an investment fraud involving over Rs 1,700 crore, the ED seized digital evidence during searches at various premises located at Karnataka’s Belagavi, Chikkodi and Nipani linked to Shivam Associates and its related entities for duping investors by promising high returns, an official said.
The Enforcement Directorate (ED), Mangalore, conducted search operations on August 8 at premises also linked to Shivanand Siddappa Neelannavar and other associated persons/entities under section 17 of the Prevention of Money Laundering Act (PMLA), 2002, the ED said in a statement.
During the search operations, the ED recovered and seized various incriminating documents and digital evidence indicating the generation, movement, layering and parking of Proceeds of Crime.
The search also resulted in the recovery and seizure of incriminating records relating to monetary transactions, diversion and parking of funds, investments in immovable properties and dealings with various persons and entities associated with the accused. The material and digital evidence recovered during the search is being examined, the ED said.
The ED initiated an investigation based on an FIR registered by the Malamaruthi Police Station, Belagavi City under the Banning of Unregulated Deposit Schemes Act, 2019 and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004.
The FIR alleges that members of the public were induced to invest funds on the promise of abnormally high and assured returns.
The investigation under PMLA indicated that Shivam Associates and its associated persons/entities allegedly mobilised substantial funds received from a large number of investors, the ED said.
Preliminary analysis of information obtained from banks and other records indicates extensive movement of funds through business, personal and intermediary accounts, including transfers to stock brokers, fixed-deposit accounts, related persons and other beneficiaries, it said.
The investigation has also identified a financial nexus among Shivam Associates, Shivanand Siddappa Neelannavar, Subhash Ramagouda Nandargi, Mahesh S Neelannavar Shivam Productions, Shivam Lifeline Pvt Ltd, Shivam Sevaa (OPC) Pvt Ltd and other associated persons/entities, the ED said.
An analysis of the bank accounts and financial records of these persons and entities has revealed extensive and interconnected movement of funds. The investigation further revealed that Shivanand Siddappa Neelannavar lured the public by promising the return of 3 per cent per month on the investment/deposit and accumulated Rs 2,110.97 crore from the public, against which repayments amounting to Rs 333.89 crore have been identified during search action.
Accordingly, an amount of Rs 1,777.08 crore out of Proceeds of Crime generated through this process is yet to be traced. Further, it has also been gathered that a commission of 0.5 per cent was paid to leaders (commission agents) who are channelised for luring the public for making investment, the ED said.
–IANS
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