ED files complaint in ₹2,459 crore Shivam scam
Belagavi The Enforcement Directorate (ED) has filed a prosecution complaint against six people and entities in connection with an alleged ₹2,459 crore investment scam linked to Shivam Associates, which reportedly affected more than 35,000 investors. The complaint was filed by the ED’s Mangaluru sub-zonal office before the III Additional District and Sessions Court in Mangaluru. The agency has sought the conviction of the accused in the alleged money laundering case. According to the ED, the alleged scam was operated by Shivanand Siddappa Neelannavar through Shivam Associates and related entities. Investigators said investors were promised assured returns of three per cent a month, along with a 0.5 per cent commission for bringing new investors into the scheme.
The agency alleged that approximately ₹2,459.5 cr was collected from more than 35,000 investors. Part of the money was reportedly used to repay earlier investors, helping the scheme continue and attracting more deposits. The ED stated that an outstanding principal amount of around ₹2,125.6 crore remained unpaid. The investigation also traced the alleged diversion of funds into high-risk stock market trading, property investments and accounts linked to family members and associated businesses. According to the agency, stock trading resulted in losses of about ₹186 cr. Investigators further alleged that around ₹25 crore was routed through cooperative credit societies to create fixed deposits, which were subsequently used as security for loans to purchase land. The ED also alleged that ₹5 crore from the collected deposits was used to finance the Kannada film Champion. The case originated from a police complaint registered at Malamaruthi police station in Belagavi. The ED later conducted searches at premises linked to the accused and their associates in Belagavi, Chikkodi and Nipani. Neelannavar was arrested on August 13, 2026, and is currently in judicial custody. The investigation into the alleged financial fraud and money laundering is continuing. The allegations will be examined through the judicial process.
