ED Conducts Raids Against Shivam Associates in Major Money Laundering Case

Bengaluru, August 11: The Enforcement Directorate (ED) launched a significant operation on August 7, targeting Shivam Associates and its affiliates in Belagavi, Chikkodi, and Nipani. This action was executed under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002.

In a press release issued on Tuesday, the ED revealed that the investigation was initiated based on an FIR filed at the Malamaruti Police Station in Belagavi. This FIR was registered under the Banning of Unregulated Deposit Schemes Act, 2019, and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004. Allegations in the FIR claim that individuals were lured into investing money with promises of high and guaranteed returns.

The ongoing investigation under the PMLA has uncovered that Shivam Associates and its connected entities allegedly amassed substantial funds from numerous investors. Preliminary analysis of data from banks and other records indicates extensive financial transactions through business, personal, and intermediary accounts. This includes transfers to stock brokers, fixed deposit accounts, and other beneficiaries.

The investigation has also identified a financial relationship among Shivam Associates, Shivanan Siddappa Neelanvar, Subhash Ramagoda Nandargi, Mahesh S Neelanvar, Shivam Productions, Shivam Lifeline Private Limited, Shivam Seva (OPC) Private Limited, and other related individuals and entities.

Analysis of the bank accounts and financial records of these individuals and organizations has revealed large-scale and interconnected transactions. It was found that Shivanan Siddappa Neelanvar attracted investors by promising a monthly return of 3%, leading to approximately ₹2110.97 crore being deposited.

During the raids, payments totaling around ₹333.89 crore were identified. However, ₹1777.08 crore of the proceeds from these criminal activities remain unaccounted for. Additionally, it was discovered that agents who enticed people to invest were paid a commission of 0.5%.

The ED seized several critical documents and digital evidence related to the creation, transfer, layering, and parking of the illicit funds during the raids. Important records concerning money transactions, fund allocations, real estate investments, and dealings with various individuals and entities connected to the accused were also recovered. The ED continues to pursue further investigations based on the evidence gathered during these operations.