The Enforcement Directorate has expanded its probe into a major ₹4,500-crore investment scam, involving property searches and questioning of key figures including Shivananad Neelannavar, amidst rising scrutiny of Ponzi schemes in India.
The Enforcement Directorate on Friday searched properties linked to Shivananad Neelannavar, owner of Shivam Associate Company, as it widened its probe into an alleged ₹4,500-crore investment fraud that investigators say affected more than 40,000 people. According to local reports, teams from Mangaluru and Goa searched three locations in Belagavi, including Neelannavar’s home in Shiv Basavanagar, a property in Badkundri village and the residence of his business partner, Subhash Nandargi.
During the searches, officials questioned Neelannavar and his wife, Sangeeta, while examining financial papers, bank records and digital devices for clues about where the money went and what assets may have been bought with investor funds. Investigators allege the scheme drew in deposits by promising unusually high returns without approval from the Reserve Bank of India or the Securities and Exchange Board of India.
The case was first filed at Malamaruti police station in Belagavi on May 15 and later handed over to the Criminal Investigation Department for a deeper inquiry. Neelannavar was arrested during the investigation and later received conditional bail on July 13 from the 93rd City Civil and Sessions Court after posting a personal bond of ₹3 lakh. The court also barred him from leaving India without permission.
The ED is now assessing whether the alleged fraud also involved money laundering and is expected to work with the CID to trace transactions and identify assets linked to suspected proceeds of crime. The action comes as Indian authorities continue to step up scrutiny of investment and Ponzi-style schemes, including a separate ED raid in Tamil Nadu in June tied to a ₹400-crore fraud.
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