Belagavi: Deputy Commissioner Mohammad Roshan has revealed that investigations have determined Shivam Associates to be a fraudulent company, cautioning the public against investing their hard-earned savings in such bogus entities. It has also come to light that the company mobilized thousands of crores through inter-district and inter-state transactions, including in Belagavi district.
Regulatory Violations and CID Involvement
City Police Commissioner Bhushan Borase stated that there is suspicion that the transactions violated regulations governing financial institutions, including norms set by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). A recommendation has been made to transfer the case to the Criminal Investigation Department (CID) for a detailed probe into Shivam Associates.
Addressing a joint press conference at the deputy commissioner’s office on Saturday, Roshan and Borase said the investigation into the financial irregularities would be entrusted to the CID.
Preliminary Findings and Investor Impact
Preliminary findings indicate that money was collected from thousands of individuals. Police suspect that an application named ‘Acumen’ was developed and used to mobilize public investments. Transactions worth several thousand crores are believed to have been routed through this application, officials said. A joint team of the cooperative department and police, led by assistant commissioner Shravan Nayak, conducted raids and seized hundreds of documents. Investigations are underway from multiple angles.
The total amount mobilized by the accused is yet to be ascertained. However, it is estimated that transactions worth around Rs 50,000 crore may have taken place over the years, with more than 30,000 investors suspected to be involved.
Public Warning and Legal Actions
Officials reiterated that Shivam Associates was found to be a fake entity and cautioned the public against depositing their life savings in such dubious schemes. Borase said an anonymous complaint was sent to SEBI, following which the information was also shared with the CID. “We are in the process of handing over the case to the CID,” he said.
Documents submitted by the accused’s chartered accountant were examined, revealing a balance sheet of Rs 300–400 crore. The accused claimed to have invested in stock markets, real estate, fisheries, and social services. However, officials pointed out that investing in the stock market requires expertise, while he reportedly studied only up to PUC. He earlier worked as a driver, later started an ice cream unit, and began stock market investments through loans in 2016.
The police commissioner said a formal recommendation to transfer the case to the CID would be made on Saturday. Roshan urged the public not to be lured by promises of high returns. “Before investing, verify accreditation, RBI approval, and legal documents. Otherwise, people risk losing their lifetime savings,” he warned.
Profile of Shivanand Neelannavar
Shivanand Neelannavar, owner of Shivam Associates, was taken into custody by APMC police at his residence in Shivbasav Nagar late Friday night, following an FIR registered by the cooperative department. His arrest has sparked panic among thousands of depositors across the state. Shivanand Neelannavar hails from Unkal in Hubballi. His father served in the army and later worked with KEB before his demise. The family moved to Belagavi following a transfer. After studying up to II PUC, Neelannavar began his career as a peon in a medical college. Between 2004 and 2006, he sold ice cream from an autorickshaw and later set up a small ice cream unit. Around 2012, he launched Shivam Associates as an investment firm. He also developed an application called 'Acumen', through which funds were reportedly mobilized from the public. Sources indicate that the platform facilitated investments running into several thousand crores.
