Belagavi Deputy Commissioner Mohammed Roshan and Police Commissioner Bhushan Borase while addressing media persons in Belagavi.
BELAGAVI
Goa police have contacted their counterparts in Belagavi as anxiety continues to rise among several families from Belagavi and Goa region, after Belagavi district authorities on Saturday intensified action in the deposit collection case linked to Shivam Associates and its promoter Shivanand Neelannavar.
Officials have now formally recommended a CID investigation into what is emerging as one of the biggest suspected financial fraud cases in the region, while Neelannavar was arrested and remanded to judicial custody late Friday night.
Addressing a joint news conference, Belagavi Deputy Commissioner Mohammed Roshan and Police Commissioner Bhushan Borase disclosed that nearly 35,000 investors may have deposited money in the scheme, with financial transactions under scrutiny potentially running into several thousand crores.
Stating that depositors across the border areas were lured with promises of up to 36 percent annual returns, Police Commissioner Bhushan Borase said documents seized during the raids indicated large-scale financial dealings, although investigators claimed no valid licences or regulatory approvals were produced by the organisation.
He further disclosed that the investigation began after an anonymous complaint was reportedly sent to SEBI, which later alerted CID authorities. Investigators subsequently contacted RBI officials in Bengaluru and allegedly discovered through official verification that Shivam Associates was not a registered entity.
“Goa Police authorities have also contacted us and have assured to coordinate with us. We have specific information that cannot be divulged for now,” Police Commissioner Borase added.
Stating that people from across Belagavi, Goa and neighbouring areas have made huge investments with the lure of gaining higher interest Deputy Commissioner Roshan said that the top officials from the state are coordinating with the district authorities in this regard.
“A dedicated cell has been formed under Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (KPID) that has been functioning for nearly a month after officials began receiving intelligence inputs through social media monitoring, media reports and market intelligence assessments,” said Roshan.
“Investigators have claimed that Shivam Associates had been collecting deposits without complying with RBI, SEBI and cooperative society regulations. Raids were conducted at four locations linked to the organisation, where investigators allegedly found evidence of unauthorised cash handling and financial operations.”
“Following the inspections, a complaint was registered at Malmaruti Police Station under provisions of the KPID) Act and the Banning of Unregulated Deposit Schemes (BUDS) Act.”
Authorities have submitted a detailed 150-page report to the Karnataka government, following which steps have reportedly begun to establish a Special Court for the case. A Revenue Department officer has also been appointed as the nodal officer for coordinating the investigation.
Activists from the border region claimed that many investors are from Goa, including retired employees, ex-servicemen and small traders who were allegedly attracted by promises of high monthly returns.
The revelations have triggered concern among Goan investors, particularly those from border areas who reportedly invested substantial savings after being convinced by promises of “3 percent monthly returns.”
Authorities have urged the public to avoid high-return investment schemes and verify the legitimacy of financial entities through RBI’s official channels before investing money.
