ED search of financial firm reveals unaccounted-for transactions of over ₹1,777 crore
A search and seizure operation by the Directorate of Enforcement (ED) has revealed transactions of over ₹1,777 crore of unaccounted-for funds by Shivam Associates, a
A search and seizure operation by the Directorate of Enforcement (ED) has revealed transactions of over ₹1,777 crore of unaccounted-for funds by Shivam Associates, a Belagavi-based financial firm. As per a release issued by the ED’s Mangalore branch, Shivanand Siddappa Neelannavar, the promoter, had “lured the public” by promising a return of 3% per month on the investment/deposit and had accumulated approximately ₹2,110.97 crore from the public, against which repayments amounting to approximately ₹333.89 crore have been identified during the search. Accordingly, an amount of approximately ₹1,777 crore of the Proceeds of Crime generated through this process remains untraced. Further, it has also been gathered that a commission of 0.5% was paid to leaders (commission agents) who were channelised to lure the public to make investments.
The search operations were conducted in Belgavi, Chikkodi, and Nippani in Belagavi district, as per the provisions of the Prevention of Money Laundering Act (PMLA), 2002, on August 7th. The ED initiated an investigation based on an FIR registered at the Malamaruthi Police Station, Belgavi city, under the Banning of Unregulated Deposit Schemes Act, 2019, and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004. The FIR alleges that members of the public were lured to invest funds on the promise of abnormally high and assured returns. The investigation under the PMLA indicates that Shivam Associates and persons/entities associated with it allegedly mobilised substantial funds received from a large number of investors.
Preliminary analysis of the information obtained from banks and other records indicates an extensive movement of funds mobilised through business, personal, and intermediary accounts, including transfers to stock brokers, fixed-deposit accounts, related persons and other beneficiaries. The investigation has also identified a financial nexus among the Shivam Associates, Shivanand Siddappa Neelannavar, Subhash Ramagouda Nandargi, Mahesh S. Neelannavar, Shivam Productions, Shivam Lifeline Pvt. Ltd., Shivam Sevaa (OPC) Pvt. Ltd. and other associated persons/entities. Analysis of the bank accounts and financial records of these persons and entities has revealed an extensive and interconnected movement of funds. During the search operations, the ED recovered and seized various incriminating documents and digital evidence indicating the generation, movement, layering and parking of the Proceeds of Crime.
The BriefWire