Pramesh S Jain
Over 35,000 investors allegedly cheated;properties of kingpin Shivanand Neelannavar,family members and associates attached.
The Directorate of Enforcement (ED) has provisionally attached movable and immovable assets worth Rs.427.16 crore belonging to Shivanand Siddappa Neelannavar,the alleged kingpin of a mega Ponzi scheme in Belagavi,and persons and entities associated with him.
The attachment order was issued by the ED’s Mangaluru Sub-Zonal Office on October 30 under the Prevention of Money Laundering Act (PMLA), 2002, in connection with an alleged investment fraud involving proceeds of crime of approximately Rs.2,459 crore.
The properties attached include fixed deposits,bank balances,share market holdings,agricultural land, bungalows and bookings of apartments in residential projects.
The ED investigation revealed that substantial portions of the collected money were diverted into high-risk stock market trading,resulting in net losses of Rs.185.95 crore.
Around Rs.25 crore was allegedly routed through Shreemata Co-operative Credit Society Ltd.and Dhanashree Multipurpose Co-operative Society Ltd,to create fixed deposits,which were subsequently used as security for loans taken in the names of associates to purchase land.
The funds were also allegedly diverted to the bank accounts of close family members,including his wife Sangeeta and minor son Siddhant,besides being invested in business ventures such as Shivam Sevaa (OPC) Pvt. Ltd,which allegedly received ₹19 crore, Shivam Lifeline Pvt. Ltd. and Shivam Foods.
The ED identified 42 immovable properties,including agricultural plots,family bungalows and apartment bookings, along with financial assets held by the accused and associated entities.
Neelannavar was arrested on August 13,2026.On October 9,the ED filed a prosecution complaint before the PMLA court in Mangaluru, seeking prosecution of five accused persons and entities, including Neelannavar.Further investigation is underway.
