Belgaum: Shocking details have emerged in the multi-crore Shivam Associates fraud case being investigated by the CID. The accused, Shivam Associates owner Shivananad Neelannavar, allegedly transferred investors’ money to several film personalities, including actress , officials revealed during a press conference on Sunday.
CID DIG Bheemashankar Guled said the investigation into the massive financial fraud is ongoing. He stated that although CID usually avoids holding press conferences during an active probe, growing rumours and misinformation surrounding the case made it necessary to present the facts before the public.
Notice Likely to Sunny Leone and Other Celebrities
According to CID officials, evidence has surfaced indicating that money collected from investors was paid to several actors and actresses, including Sunny Leone. Notices may soon be issued to those personalities, calling them for questioning as part of the investigation.
Investors Still Depositing Money Despite Arrest
In a startling revelation, CID said people continue transferring money into Neelannavar’s accounts even after his arrest. More than ₹5 crore has reportedly been deposited into his accounts over the last 20 days alone. Officials urged the public not to fall prey to promises of unusually high returns.
₹2400 Crore Collected From Over 40,700 Investors
Preliminary CID findings indicate that Neelannavar collected nearly ₹2400 crore from around 40,700 investors through promises of extremely high profits. Investigators believe the operation functioned like a Ponzi scheme, where money from new investors was used to pay returns to older investors.
Officials explained that if someone deposited ₹1000 in 2025, they were promised heavy returns in 2026. The scheme reportedly survived only as long as fresh investments continued flowing in.
₹170 Crore Lost in Stock Market
CID further revealed that nearly ₹540 crore was invested in the stock market, resulting in losses of around ₹170 crore. Authorities also stated that approximately ₹390 crore may still be recoverable from different sources.
Luxury Cars, Gold and Properties Purchased
Investigators found that Neelannavar allegedly used investors’ money to purchase luxury assets, including two Mercedes cars, a Defender, Verna, and 11 Volvo XC90 vehicles. Some of the vehicles are registered in other states, and information has been sought from respective authorities.
Officials also confirmed the seizure of around 250 grams of gold jewellery and several properties linked to the accused. Around ₹55 crore was allegedly transferred from company accounts into personal accounts.
Action Against Investors Who Earned Excess Profits
CID officials said documents of nearly 20,000 investors have already been verified, including around 10,000 investors from Maharashtra. Investigators discovered 30 bank accounts linked to Neelannavar, with seven accounts showing heavy transactions. One bank account alone reportedly contains transaction records spanning over 36,200 pages.
Authorities further stated that investors who earned unusually high and illegal profits from the scheme may also face notices, and excess amounts could be recovered as part of the ongoing investigation.
