ED search of financial firm reveals unaccounted-for transactions of over ₹1,777 crore
The Enforcement Directorate has uncovered a ₹1,777 crore financial fraud involving Shivam Associates, a Belagavi-based firm that promised high returns to investors. The firm allegedly collected over ₹2,110 crore from the public through unregulated deposit schemes before failing to account for the majority of the funds.
Why it matters
This case highlights the risks of unregulated financial schemes and the ongoing efforts by Indian authorities to combat money laundering and protect retail investors from fraudulent investment promises.
A search and seizure operation by the Directorate of Enforcement (ED) has revealed transactions of over ₹1,777 crore of unaccounted-for funds by Shivam Associates, a Belagavi-based financial firm.
As per a release issued by the ED’s Mangalore branch, Shivanand Siddappa Neelannavar, the promoter, had “lured the public” by promising a return of 3% per month on the investment/deposit and had accumulated approximately ₹2,110.97 crore from the public, against which repayments amounting to approximately ₹333.89 crore have been identified during the search.
Accordingly, an amount of approximately ₹1,777 crore of the Proceeds of Crime generated through this process remains untraced. Further, it has also been gathered that a commission of 0.5% was paid to leaders (commission agents) who were channelised to lure the public to make investments.
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