The Enforcement Directorate (ED) has unearthed a massive financial fraud in Belagavi, where Shivam Associates has been among the most audited investment firms in Karnataka, and there are thousands of potential investors in the market.
The investigation began because of a First Information Report (FIR) filed at the Malmaruti Police Station in Belagavi district. Based on the complaint, the ED’s Mangaluru Zonal Office conducted extensive searches at different places in Belagavi, Chikkodi, and Nippani. The raids targeted properties and establishments of Shivam Associates and its founder Shivananad Siddappa Neelannavar along with their associated people and properties.
According to the ED, Shivananad Siddappa Neelannavar and his associates had persuaded people to invest money by promising a monthly interest return of 3 per cent. They were presented as a lucrative and reliable investment opportunity in which investors from many regions were attracted.
The agency's preliminary findings indicate that ₹2,110.97 crore was mobilised from investors through different deposit schemes. However, only ₹333.89 crore was returned to investors. The investigators are now looking for the remaining ₹1,777.08 crore, which is suspected to have been diverted through various channels and used for unauthorised purposes.
According to the ED, the collected funds were transferred to business accounts, personal accounts, and intermediary accounts. The investigation also uncovered that large amounts were transferred to stockbrokers, fixed deposit accounts, relatives, associates, and other beneficiaries. The money was transferred through a complex financial network to conceal its actual use and ownership, authorities say.
ED, Mangalore, has conducted search operations on 07.08.2026 at various premises located at Belgavi, Chikkodi & Nipani, linked to M/s Shivam Associates, Shivanand Siddappa Neelannavar and other associated persons/entities under PMLA, 2002 in a matter related to defrauding… pic.twitter.com/YyK2BQaptb
— ED (@dir_ed) August 11, 2026
The investigation also uncovered the role of agents and intermediaries who allegedly helped expand the investment network. Intermediaries were given a commission of 0.5 per cent on the investment they made in the scheme to attract more depositors, the investigators said.
The ED has also claimed that investor money was diverted into stock market investments, bank fixed deposits, real estate ventures, and accounts belonging to close associates of the accused. These transactions are now under investigation under provisions related to money laundering and financial fraud.
Among the individuals and entities being investigated are Shivam Associates, Shivananad Siddappa Neelannavar, Subhash Ramagouda Nandaragi, Mahesh S. Neelannavar, Shivam Productions, Shivam Lifeline Private Limited, and Shivam Seva Private Limited, which the government said were involved in the collection, management, and movement of investor funds.
ED officials were able to collect several incriminating documents, digital records, financial statements, and evidence related to benami property investments during the search process, the agency said. These papers will have significant implications for the flow of funds and the extent of the alleged fraud, it said.
Financial experts say the case is one of the best examples of how high-return investment promises may entice unsuspecting investors. That’s why the ED has advised the public to be mindful of schemes with exceptionally high returns and no regulatory oversight.
The investigation is ongoing, and authorities may want to conduct a further forensic examination of the seized documents and digital evidence. More people and actors may be subject to investigation as the missing money is recovered and the total scale of the alleged scam is unearthed.
Shivam Associates is likely to be one of the most heavily watched financial fraud cases in Karnataka because over ₹2,110 crore is involved, thousands of investors are waiting for answers, and the possibility of recovering their hard-earned money.
