ED files prosecution complaint in ₹2,459 crore ponzi scam; over 35,000 investors duped
The Enforcement Directorate has filed a prosecution complaint against five entities and individuals, including Shivanand Siddappa Neelannavar, for a ₹2,459 crore Ponzi scheme. The investigation revealed that investor funds were diverted into high-risk stock trading, property, and film production.
Why it matters
This case underscores the scale of financial fraud in India and the regulatory efforts to recover funds and prosecute those responsible for large-scale investment scams.
The Directorate of Enforcement (ED) has filed a prosecution complaint against five persons and entities, including alleged kingpin Shivanand Siddappa Neelannavar and his firm, Shivam Associates, in connection with an alleged ₹2,459 crore Ponzi scam, cheating more than 35,000 investors.
The complaint was filed before the III Additional District and Sessions judge in Mangaluru on October 9, seeking the conviction of the accused in the money-laundering case.
Neelannavar was arrested on August 13, 2026, and is currently in judicial custody.
According to the ED investigation, Neelannavar and his associates allegedly collected ₹2,459.49 crore by promising investors assured returns of 3% per month and a referral commission of 0.5% for bringing in new investors. Neelannavar reportedly referred to the network’s agents as “leaders”.
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