ED search of financial firm reveals unaccounted-for transactions of over ₹1,777 crore

The Directorate of Enforcement (ED) has conducted a search and seizure operation at Shivam Associates, a financial firm based in Belagavi, uncovering unaccounted-for funds totaling over ₹1,777 crore. Promoter Shivanand Siddappa Neelannavar had allegedly enticed the public with promises of a monthly return of 3% on investments and deposits, amassing approximately ₹2,110.97 crore from the public.

However, repayments only amounted to around ₹333.89 crore, leaving an unexplained amount of approximately ₹1,777 crore. A commission of 0.5% was reportedly paid to agents who lured investors. The search took place in Belgavi, Chikkodi, and Nippani, Belagavi district, under the Prevention of Money Laundering Act (PMLA) 2002, following an FIR registered at the Malamaruthi Police Station.

The investigation, which also alleged abnormally high assured returns, indicates a financial nexus among Shivam Associates, Neelannavar, Nandargi, S. Neelannavar, Shivam Productions, Shivam Lifeline Pvt. Ltd., Shivam Sevaa (OPC) Pvt. Ltd., and other entities. The ED recovered documents and digital evidence, including records related to fund generation, movement, layering, and parking, investments in properties, and dealings with associated persons and entities. Further investigation is ongoing.