Shivanand Neelannavar, promoter of alleged ponzi scheme, held

The Belagavi constabulary arrested Shivanand S. Neelannavar, the promoter of Shivam Associates, a fiscal steadfast that had been operating without regulatory approvals, connected Friday (May 15).

Shivam Associates (ACCUMEN), the steadfast helium founded, faces charges of collecting deposits from the wide nationalist by promising 36% returns, without support from the Reserve Bank of India, Securities and Exchange Board of India, Department of Cooperation, oregon immoderate different Central oregon State authorities agency. Preliminary investigations conducted by officers from the police, gross and practice departments person revealed that implicit 35,000 persons had invested successful the firm. A important fig of them are ex-servicemen. The steadfast was moving a multi-level selling strategy that had nary approvals either. The quantum of funds progressive is yet to beryllium determined.

Belagavi Deputy Commissioner Mohammed Roshan told reporters successful Belagavi connected Saturday (May 16) that the alleged ponzi strategy scam is apt to beryllium transferred to the CID arsenic it has inter-State and inter-district ramifications, successful summation to the information that prima facie, the magnitude progressive crossed ₹50 crore.

He said that investigators are scanning each the documents retrieved from the offices of the steadfast and the residences of Neelannavar to stitchery information related to its operations. In astir cases, the deposits were received arsenic manus loans. However, determination is simply a High Court judgement which states that manus loans tin beryllium treated arsenic deposits successful specified cases, the Deputy Commissioner said.

“Some clip ago, a fiscal scam compartment was acceptable up successful the Deputy Commissioner’s bureau to enforce The Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act) and the Karnataka Protection of Interest of Depositors successful Financial Establishments Act, 2004 (KPID Act). The compartment has been tracking the activities of Neelannavar for a fewer months now,” Mr. Roshan said, explaining that a ceremonial probe was launched by a squad headed by Shravan Nayak, Assistant Commissioner and Sub-Divisional Magistrate. He submitted a 150-page study that intelligibly showed that the steadfast had nary support from immoderate authorities bureau to cod deposits, springiness oregon person loans oregon indulge successful immoderate fiscal transactions with immoderate subordinate of the public.

“A elaborate probe led by Police Commissioner Borase Bhushan Gulabrao besides showed that determination were respective cognisable wrongs done by the firm. Following this, officials of assorted departments conducted raids connected the premises of the steadfast and the founder. They recovered integer and documentary data. These are being studied for further grounds of wrongdoing. Copies of each applicable documents person been shared with the State government,’’ Mr. Roshan said.

The Deputy Commissioner said a database of depositors has been obtained. It appears that respective pensioners deposited their life’s savings into the steadfast portion immoderate land-losing farmers had invested the compensation they received aft acquisition. In different cases, immoderate persons were benefiting from inviting others to invest. He appealed to the victims of the strategy to record complaints and question refunds from the territory fiscal frauds cell. “The contented volition present beryllium taken up by a competent authorization astatine the State level that volition beryllium appointed soon. It volition guarantee that each the depositors get refunds arsenic per law,’’ Mr. Roshan said.

Mr. Gulabrao said that an FIR was registered against Neelannavar and his associates based connected provisions of the BUDS Act and KPID Act. “Further probe is on, but the accused is not cooperating with investigators. He is dodging each superior and circumstantial questions by giving vague and unrelated responses. We volition question constabulary custody of the accused arsenic we request him for further investigations,’’ the Police Commissioner said.

“Neelannavar had been holding respective nationalist events, wherever helium invited celebrities and artists to talk oregon perform. In 1 of the events held successful Kadur village, helium claimed to person collected implicit 15,000 guns and weapons. This was a reddish emblem for us. This created suspicions connected whether helium was trying to physique a pack for unlawful activities. Police officers began tracking each his activities from past on. Officers of the police, societal media, and IT compartment collected each his nationalist statements,’’ helium said.

Neelannavar hails from Unkal adjacent Hubballi and aboriginal settled successful Belagavi. A PU graduate, helium has done petty jobs similar driving and selling ice-cream. Around 2016, helium took loans to put successful the banal market. “This seems to person fixed him an thought of investing different people’s wealth successful the market. However, his attack did not person the authorisation of the law,’’ the Police Commissioner said. He added that astir of the transactions of Shivam Associates were done done banks utilizing cheques and a website built for that purpose. Officials person initiated steps to frost the slope accounts.

“Investigators person collected copies of ads issued by Shivam Associates done societal media, pamphlets and different means wherever a outgo of 36% was promised for a minimum concern of ₹1 lakh. We entreaty to the nationalist to behaviour owed diligence earlier investing their money. For example, erstwhile the State Bank of India pays astir 6-7% involvement for deposits, however tin immoderate bureau spend to wage 36%? This means that the bureau is utilizing methods that bash not person the authorisation of the law. People should not respond to specified intolerable claims,’’ helium said.

He said officers are tracking immoderate different specified companies moving ponzi schemes, fake concern schemes, oregon deposit schemes, and volition instrumentality enactment soon.