Enforcement Directorate seizes 427 crore rupees in Karnataka Ponzi scam

The Enforcement Directorate (ED) has temporarily seized movable and immovable assets worth 427.16 crore rupees belonging to Shivananda Siddappa Neelannavar and his associates. This action follows an investigation into a massive Ponzi investment scam in the Belagavi region of Karnataka, which allegedly defrauded over 35,000 investors of approximately 2,459.49 crore rupees.

Operating through Shivam Associates and other entities, the accused reportedly promised investors an unusually high monthly return of 3 percent, along with a 0.5 percent referral commission for bringing in new participants. The scheme relied on a network of agents, referred to as “leaders,” to recruit victims.

Investigations revealed that the collected funds were diverted through various channels to conceal their origin. A significant portion was invested in high-risk stock market trading, resulting in a net loss of 185.95 crore rupees. The ED also found that funds were moved through cooperative societies and transferred into the bank accounts of the accused’s family members, including his wife and minor son.