Pramesh S Jain
The Karnataka government has handed over the alleged Rs.4,500 crore fraud case involving Shivam Associates to the Criminal Investigation Department (CID) following the arrest of accused Shivanand Neelannavar.
The case pertains to allegations of large-scale financial misappropriation involving investments collected from former servicemen and members of the public in Shivam Associates.
Authorities suspect that nearly 40,000 to 45,000 depositors invested around ₹4,500 crore after being allegedly lured with promises of high returns.
Officials said the firm allegedly failed to follow Reserve Bank of India guidelines while mobilising deposits from the public.
Following complaints from depositors,a search operation was conducted on thursday at the accused’s house,office and apartment premises in Belagavi.
The raid was carried out by officials from the revenue department,cooperation department and local police under the supervision of Assistant Commissioner Shravan Kumar.
Investigators reportedly recovered several incriminating documents during the searches.
An FIR was later registered against Shivanand Neelannavar at Mala Maruti Police Station,following which he was arrested.
Belagavi Deputy Commissioner,Mohammed Roshan had earlier ordered an inquiry under the Karnataka Protection of Interest of Depositors in Financial Establishments Act to safeguard the interests of depositors.
Based on the Deputy Commissioner’s directions,a special team comprising officials from the office of the Belagavi City Police,revenue department,Registrar of Companies and other departments has been constituted to probe the matter and submit a detailed report for further action.
The CID is now expected to conduct a detailed investigation into the alleged multi-crore financial fraud and trace the flow of funds collected from investors.
