India News | Rs 4,500 Crore Deposit Fraud Case: Prime Accused Shivananda Neelannavar Shifted to Bengaluru by CID
Get latest articles and stories on India at LatestLY. Shivananda Neelannavar, the prime accused in the alleged Rs 4,500-crore deposit fraud case, has been shifted to Bengaluru by the CID.
Belagavi (Karnataka) [India], May 19 (ANI): Shivananda Neelannavar, the prime accused in the alleged Rs 4,500-crore deposit fraud case, has been shifted to Bengaluru by the CID.
The probe was intensified after allegations surfaced that he lured investors with promises of high returns, including up to 36 per cent interest, before allegedly cheating them.
Neelannavar, who is the owner of Shivam Associates, was taken from the Malamaruti police station to Bengaluru on Monday under tight security. A CID team transported him in two vehicles after completing initial investigation procedures in Belagavi.
Officials also seized several items, including documents, a computer, a laptop, a pen drive, and mobile phones, which have been taken for detailed forensic examination as part of the probe. Investigators also recorded information related to the seized documents during the interrogation.
A court had earlier granted 10-day CID custody of Neelannavar on Sunday.
The case stems from allegations of a large-scale investment fraud involving promises of unusually high returns. The first complaint was filed by an investor, Krishna Appanna Apraj, at the Kagawad police station.
According to the complaint, the investor had deposited Rs 5 lakh in phases in April after being allegedly assured returns of 36 per cent. He later claimed he was cheated by the accused.
Earlier on Sunday, Neelannavar was produced before a judge at the latter's residence in Belagavi after undergoing a mandatory medical examination at the Belagavi Institute of Medical Sciences (BIMS) Hospital.
Police took Neelannavar to BIMS Hospital for a medical check-up before presenting him before the judge. He was later shifted from his office in Shivabasava Nagar for further legal proceedings.
According to police officials, Neelannavar was questioned continuously for nearly 12 hours at his office. During the search operation, officers carried out document verification and examined online financial transactions linked to the firm.
The case relates to the alleged collection of deposits from nearly 35,000 to 45,000 people across north Karnataka by promising unusually high returns of up to 36 per cent interest.
According to the police, the illegal fund mobilisation and alleged cheating were carried out through an investment scheme operated by Shivam Associates without mandatory approvals from financial regulators or the Reserve Bank of India (RBI).
The Belagavi police arrested Neelannavar after registering a First Information Report (FIR) in the matter. The alleged scam, estimated to involve nearly ₹4,500 crore, came to light after several investors approached authorities alleging irregularities and delays in repayments.
Following the complaints, officials from the district administration, cooperation department and revenue department conducted a preliminary inquiry. Based on the findings, the Belagavi district administration has recommended that the case be handed over to the Criminal Investigation Department (CID) for further investigation. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)