Bengaluru: The Enforcement Directorate (ED), Mangaluru, has provisionally attached movable and immovable properties worth Rs 427.16 crore belonging to Shivanand Siddappa Neelannavar and his associates in connection with an alleged large-scale Ponzi investment scam involving the collection of Rs 2,459.49 crore from more than 35,000 investors, primarily in Karnataka's Belagavi region, IANS reported on Saturday. The action was taken under the Prevention of Money Laundering Act (PMLA), 2002, and the attachment order is dated October 30.

Source: IANS via hi INDiA

According to the ED press release, the accused allegedly operated the investment fraud through Shivam Associates and other associated entities, promising investors exceptionally high returns of 3 per cent per month and an additional 0.5 per cent referral commission for bringing in new investors. The scheme reportedly relied on a network of referral agents, referred to as 'leaders', who were encouraged to mobilise more investors with promises of assured and attractive returns.

Source: IANS via hi INDiA

Rs 2,459.49 croreAlleged collections from investors, per the ED
35,000+Investors the ED says put money into the scheme
Rs 427.16 croreAssets provisionally attached on October 30
3% per monthReturns the ED says investors were promised

The attached assets include fixed deposits of about Rs 367.78 crore, bank balances of Rs 44.38 crore across 47 individual and corporate accounts, 42 immovable properties — agricultural land, family bungalows and apartment bookings — valued at Rs 13.69 crore, and shareholdings of about Rs 1.32 crore held through CDSL demat accounts. The attachment equals roughly 17.4 per cent of the alleged collections. The ED has also said the collected money was put into the stock market, resulting in net losses of about Rs 185.95 crore, and that around Rs 25 crore was routed through two co-operative credit societies, Shreemata Co-operative Credit Society Ltd and Dhanashree Multipurpose Co-operative Society Ltd.

Source: The Bengaluru Live

The ED's investigation followed an FIR registered at Malamaruthi Police Station in Belagavi City under the Bharatiya Nyaya Sanhita, the Banning of Unregulated Deposit Schemes Act and Karnataka's depositor-protection law. The agency searched eight premises in Belagavi, Chikkodi and Nipani in August and recovered documents and digital evidence. Neelannavar was arrested in August, and a prosecution complaint against five accused persons and entities was filed before the PMLA Court in Mangaluru on October 9.

Source: The Bengaluru Live

The provisional attachment is aimed at preventing the properties from being transferred or disposed of during the proceedings and will be subject to adjudication under the PMLA. The ED said its investigation is continuing, including into alleged diversion of funds through family members, associates, co-operative societies and connected entities such as Shivam Seva (OPC) Private Limited, Shivam Lifeline Private Limited and Shivam Foods. No court has convicted any of the accused; the ED's allegations will be tested in court.

Source: Nation Press (IANS)