ED attaches assets worth ₹427 crore in Belagavi Ponzi scam
The Directorate of Enforcement issued the attachment order for assets belonging to the alleged kingpin Shivanand Siddappa Neelannavar and his associates.
The Directorate of Enforcement (ED) on Friday provisionally attached movable and immovable assets worth ₹427.16 crore linked to an alleged ₹2,459-crore Ponzi scheme in Belagavi.
The Mangaluru Sub-Zonal Office issued the order under the Prevention of Money Laundering Act, 2002, involving Shivanand Siddappa Neelannavar, the alleged kingpin, and associated entities.
The attached properties consist of 42 immovable assets, such as bungalows, agricultural land, and apartment bookings, alongside bank balances, fixed deposits, and share market holdings.
Investigations indicated that large amounts of the collected funds were moved into high-risk stock market trading, leading to net losses of ₹185.95 crore.
The ED alleged that approximately ₹25 crore was routed through Shreemata Co-operative Credit Society Ltd. and Dhanashree Multipurpose Co-operative Society Ltd. to create fixed deposits used as loan security for land purchases.
Funds were also allegedly transferred to the bank accounts of Neelannavar's wife, Sangeeta, and minor son, Siddhant, and invested in businesses including Shivam Sevaa (OPC) Pvt. Ltd., Shivam Lifeline Pvt. Ltd., and Shivam Foods.