BELAGAVI: The Enforcement Directorate (ED) has provisionally attached assets worth Rs 427 crore belonging to Shivam Associates owner Shivanand Neelannavar of Belagavi in connection with an alleged Rs 2,459 crore financial fraud involving more than 35,000 investors.
The attached assets include fixed deposits worth Rs 367 crore, balances of Rs 44 crore in 47 bank accounts, immovable properties valued at Rs 13 crore and stock market investments worth Rs 1.31 crore, sources said.
The case originated with an FIR registered at the Malamaruti police station in Belagavi a few months ago. Following allegations of large-scale financial irregularities and suspected money laundering, the ED initiated an investigation under PMLA.
In August, the agency conducted searches at eight locations, including Belagavi and Chikkodi, and seized documents, handwritten account records, mobile phones and other digital evidence. Neelannavar was arrested on August 8.
A substantial portion of the funds was reportedly channelled into the stock market, resulting in net losses of Rs 185.95 crore. The ED also traced the transfer of around Rs 25 crore through two cooperative credit societies. Investigators found that fixed deposits were allegedly created and used as collateral to secure loans in the names of associates. The borrowed money was subsequently used to purchase land.
The investigation revealed that Shivam Associates had allegedly collected Rs 2,459 crore from more than 35,000 investors. A substantial portion of the funds was reportedly channelled into the stock market, resulting in net losses of Rs 185.95 crore.