₹2,459-crore Ponzi scheme: ED files prosecution complaint before Mangaluru court
The Enforcement Directorate has filed a prosecution complaint against five individuals and entities involved in a ₹2,459-crore Ponzi scheme. The investigation uncovered a massive financial fraud that siphoned money from over 35,000 investors.
Why it matters
This case represents a major crackdown on financial crime and unregulated deposit schemes in India, highlighting the scale of investment fraud.
Directorate of Enforcement (ED), Mangaluru Sub-Zonal Office, has filed a prosecution complaint before the III Additional District and Sessions Judge, Mangaluru, seeking conviction against five accused persons and entities — including kingpin accused Shivanand Siddappa Neelannavar and his firm M/s Shivam Associates — found involved in a money laundering case related to a ₹2,459-crore ponzi scheme.
The ED investigation was initiated based on an FIR registered by the Malamaruthi police in Belagavi under the Bharatiya Nyaya Sanhita, 2023, the Banning of Unregulated Deposit Schemes Act, 2019, and the Karnataka Protection of Interest of Depositors in Financial Establishments (KPID) Act, 2004.
Investigation revealed that the kingpin, Neelannavar, operated a ponzi scheme through M/s Shivam Associates and other entities. Neelannavar was arrested on August 13, 2026, and is currently in judicial custody, a release issued by the ED said on Saturday.
The prosecution complaint was filed on Friday.
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