Mangaluru, August 14, 2026 (Yes Punjab News)
The Directorate of Enforcement (ED) has arrested Shivanand Siddappa Neelannavar in connection with an alleged multi-state Ponzi-style scheme operated by Shivam Associates, involving public funds of around Rs 2,110.97 crore.
Neelannavar was arrested on August 13 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. He was produced before the Special Court (PMLA) in Mangaluru, which remanded him to ED custody for 12 days, until August 24.
According to the ED, Neelannavar was the “whole and sole” person managing the firm’s fund flow and was its majority partner with primary control over its operations.
The money laundering investigation followed an FIR registered by the 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 alleged that members of the public were induced to invest by being promised unusually high and assured returns.
During its PMLA probe, the ED said it uncovered an organised Ponzi-style operation spanning multiple states. According to the agency, Shivam Associates collected Rs 2,110.97 crore from public investors by allegedly offering monthly returns of 3 per cent.
The firm allegedly used a digital mapping system and a large referral network operating across Karnataka, Maharashtra, Goa and Chhattisgarh to attract investors. Independent advisers were allegedly offered referral commissions of 0.5 per cent for bringing in new investors.
The ED said its investigation also found that the firm had incurred substantial and mounting losses in the stock market since 2019.
To allegedly conceal the losses and maintain investor confidence, funds collected as fresh principal deposits from subsequent investors were diverted to meet interest obligations to earlier investors, the agency alleged.
The ED further alleged that liquid funds were layered and integrated through personal accounts, family members and allied entities, including Shivam Sevaa (OPC) Pvt. Ltd. and Shivam Productions.
According to the agency, the allegedly diverted funds were used to purchase luxury vehicles, construct high-value bungalows, acquire properties in the names of nominal partners and finance movie productions.
The ED has identified the allegedly diverted funds as “proceeds of crime” under the PMLA.
The agency said further investigation is underway to trace the remaining liabilities and establish the complete flow of funds.
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