A man who once sold ice cream from an autorickshaw in Belagavi is now at the center of a Rs 2,125-crore alleged investment scam, with the Criminal Investigation Department (CID) looking into a staggering money trail. CID sleuths brought Shivananda Neelannavar from Bengaluru to Bengaluru on Tuesday night. He operated Shivam Associates in Belagavi and collected deposits from thousands of people by offering hefty returns — up to 36% a year — on a minimum investment of Rs 1 lakh.
He allegedly promised investors eye-popping returns through stock market trading, commodity investments, real estate ventures, and fisheries businesses. Investigators have frozen 15 bank accounts linked to Shivam Associates. One of the accounts alone reportedly contained nearly Rs 200 crore, while several others together held around Rs 50 crore.
While Neelannavar, said to be in his early 30s, has denied charges of fraud, CID officials are shocked at the scale of his operations. Between 2017 and 2024, Neelannavar collected Rs 1,180 crore from investors. During the first seven years, the firm collected Rs 168 crore annually on average. The 2024-25 year saw him allegedly mobilising Rs 945 crore — an explosive and unexplained spike. Police sources said: “This was largely driven by aggressive promotional events, including social-media reels. Neelannavar conducted conferences in hotels, marriage halls, and public venues. Sometimes he would even felicitate older investors to build credibility and confidence among new ones.”
Investor Network and Regulatory Scrutiny
CID sources estimate Shivam Associates may have had nearly 40,000 investors spread across Karnataka and neighbouring states, though officials are still identifying the number of active depositors linked to the case. CID has now sought details from the Securities and Exchange Board of India (SEBI) and other regulators regarding investments allegedly made by Neelannavar and his associate, Subhash Nandaragi, who is currently absconding.
From Humble Beginnings to Social Media Celebrity
From Unkal near Hubballi, Shivananda Neelannavar shifted to Belagavi where he worked as a driver and later started selling ice cream from a three-wheeler fitted with a refrigerator. “He became familiar to many local residents while selling ice cream. That was how he first built public contact,” a CID officer said. “Though Neelannavar claimed he completed Class 12, we suspect he may have studied only up to Class 10,” the officer added.
Around 2016, Neelannavar reportedly entered the stock market after taking personal loans. He claimed he lost Rs 15 lakh and it took him four years to recover the lost money. Subsequently, he started a massive informal investment network where he allegedly began handling public money without regulatory approval or registration, CID sources said.
Over the years, Neelannavar became a social-media celebrity in parts of north Karnataka. He organised cricket tournaments, influencer gatherings, and community feasts, projecting himself as both businessman and philanthropist. He entered Kannada cinema, producing the sports action-drama, Champion.
Collapse of the Empire
The empire began to crumble after a complaint, reportedly forwarded by SEBI, triggered raids by the Belagavi district administration. Senior CID officials are now questioning him about the alleged Ponzi-style operation. The case highlights the risks of unregulated investment schemes and the importance of regulatory oversight.
