Mangaluru, August 11, 2026 (Yes Punjab News)
The Enforcement Directorate (ED) has seized incriminating documents and digital evidence during searches linked to an alleged ₹1,700-crore-plus investment fraud involving Shivam Associates and related entities in Karnataka, the agency said.
The ED’s Mangaluru office conducted searches on August 8 at premises in Belagavi, Chikkodi and Nipani linked to Shivanand Siddappa Neelannavar and other associated persons and entities under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002.
According to the agency, the searches led to the recovery of documents and digital evidence indicating the alleged generation, movement, layering and parking of proceeds of crime. Records relating to monetary transactions, diversion and parking of funds, investments in immovable properties and dealings with various persons and entities were also seized.
The ED said its investigation was initiated on the basis of an FIR registered by Malamaruthi Police Station in Belagavi 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 induced to invest money by promising unusually high and assured returns.
The ED’s PMLA investigation has indicated that Shivam Associates and associated entities allegedly collected substantial amounts from a large number of investors. Preliminary analysis of bank and other financial records showed extensive movement of funds through business, personal and intermediary accounts, including transfers to stock brokers, fixed deposits, related persons and other beneficiaries.
The agency said it had identified financial links involving 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 and entities.
According to the ED, Neelannavar allegedly attracted investors by promising returns of 3 per cent per month and collected ₹2,110.97 crore from the public. Repayments totalling ₹333.89 crore have been identified, leaving ₹1,777.08 crore of the alleged proceeds of crime yet to be traced.
The agency also said commission agents involved in attracting investors were allegedly paid 0.5 per cent commission.
The seized material and digital evidence are being examined as the investigation progresses.
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