Belagavi: The Enforcement Directorate (ED) on Friday, August 7, launched searches at properties linked to Shivam Associate Company owner Shivananad Neelannavar as part of its probe into the alleged Rs. 4,500-crore investment fraud that reportedly affected over 40,000 investors.
Teams of ED officials from Mangaluru and Goa searched three locations connected to the accused, including his residence in Shiv Basavanagar, another property at Badkundri village and the Chikkodi residence of his business partner, Subhash Nandargi.
During the operation, investigators questioned Neelannavar and his wife, Sangeeta, while scrutinising financial documents, bank records and digital evidence to determine the flow of funds and identify assets allegedly acquired through the investment scheme.
According to investigators, Neelannavar allegedly mobilised thousands of crores from investors by offering unusually high returns despite lacking regulatory approval from the Reserve Bank of India and the Securities and Exchange Board of India. The alleged scheme is said to have attracted more than 40,000 investors.
The fraud case was first registered at the Malamaruti Police Station in Belagavi on May 15 and was subsequently transferred to the CID for detailed investigation.
Neelannavar, who was arrested during the investigation, secured conditional bail from the 93rd City Civil and Sessions Court on July 13 after furnishing a personal bond of Rs 3 lakh. The court also directed him not to leave India without permission.
The ED is now examining whether the alleged fraud involved money laundering and is expected to coordinate with the CID to trace financial transactions and recover assets linked to the suspected proceeds of crime. The investigation into the high-profile financial fraud is continuing.
