Belagavi, August 8: The Enforcement Directorate (ED) has extended its search operations for the second consecutive day at the properties linked to Shivam Associates owner, Shivanand Neelannavar, in connection with an alleged financial scam worth crores.
ED officials conducted investigations at the MS Tower complex located in Shivbasavanagar, Belagavi, under the protection of CRPF forces. Teams from Goa and Mangaluru have also joined the operation.
The process of document examination and verification, which began on Friday, continued into Saturday. Officials meticulously scrutinized the documents and other materials seized during the searches.
The ED has filed an FIR regarding the alleged illegal transfer of funds, prompting the agency to initiate raids at locations associated with Neelannavar. When the ED team arrived at Neelannavar’s residence for the search, he was not present. Subsequently, his wife and brother were summoned, and officials conducted a detailed inspection of the property and documents.
Previously, the ED had conducted simultaneous searches at three locations in Belagavi district related to the alleged fraud case. These included the MS Tower apartment in Shivbasavanagar, Neelannavar’s residence in Badakundri village, and the home of his business partner, Subhash Nandaragi, in Chikkodi.
The case involving Shivam Associates has become a topic of widespread discussion across Karnataka. The company is accused of raising funds from over 40,000 investors.
On May 15, district administration and police raided the company, alleging that it was illegally collecting deposits and enticing investors with promises of high returns. Following this, a case was registered, and Neelannavar was arrested.
According to CID investigations, the company allegedly raised approximately ₹2,400 crores from over 40,700 individuals, with around ₹540 crores invested in the stock market, resulting in an estimated loss of ₹170 crores.
The investigation was later handed over to the CID. Neelannavar, who was arrested in connection with the case, is currently out on bail.
The ED is now focusing on investigating the alleged financial irregularities, tracing the sources of the funds collected from investors, and examining related transactions.
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