Belagavi: CID DIG Bhimashankar Guled stated that in connection with the suspected fraud by Shivam Associates, owned by Shivanand Neelannavar, the CID has frozen all the company’s accounts. Investigations revealed that Shivam Associates collected approximately Rs 2,400 crore, with a current shortfall of Rs 660 crore. Although a case has been registered and account debits frozen, it is concerning that people continue to deposit money and spread false information on social media. Guled appealed to the public not to fall prey to greed, trust illegal companies, and be cheated again. Anyone attempting to lure them should be reported immediately to the nearest police station.
RBI License Not Granted
Speaking to the media on Sunday, Bhimashankar clarified that the RBI has not granted any license or authority to Shivanand Neelannavar of Shivam Associates to collect public deposits. He emphasized that there are no schemes in India offering 36% to 60% annual returns. The accused were illegally collecting money from the public by exploiting greed.
Investigation Findings
In the initial stage of the investigation, it emerged that Shivam Associates collected Rs 2,400 crore. The accused did not invest the money in any agricultural or legitimate business. Instead, funds from new depositors were used to pay older investors in the form of loans with interest. Of the total amount, Rs 540 crore was invested in the stock market, resulting in a loss of Rs 170 crore. There is a difference of Rs 660 crore, of which Rs 390 crore is likely to be traced through assets and other sources. Police said timely action has averted a major disaster that could have led to the company’s collapse within days.
Assets Seized and Customer Notices
Shivam Associates has around 40,700 customers across Karnataka and Maharashtra, and details have been shared with Maharashtra police. Assets worth Rs 55.1 crore, five luxury cars, and 250 grams of gold, which were allegedly diverted to personal accounts, have been seized. A special officer will be appointed under the KPID Act to return confiscated assets to the public. Notices will also be issued to customers who invested and unlawfully benefited from higher returns, he said.
