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The Enforcement Directorate (ED) on Tuesday said it has seized incriminating records relating to monetary transactions, diversion and parking of funds, investments in immovable properties and dealings with various persons and entities associated with the accused during its raids carried out at various places across Karnataka in a Rs 2110.97 crore money laundering probe.
ED's Mangalore zonal office carried out the search operation on August 7 at various premises located at Belagavi, Chikkodi and Nipani, linked to Shivam Associates, Shivanand Siddappa Neelannavar and other associated persons and entities U/s 17 of the Prevention of Money Laundering Act (PMLA), 2002. ED initiated an investigation on the basis of a First Information Report (FIR) registered by the Malamaruthi Police Station, Belagavi City under the Banning of Unregulated Deposit Schemes Act, 2019 and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004. The FIR alleges that members of the public were induced to invest funds on the promise of abnormally high and assured returns. The investigation under PMLA indicates that Shivam Associates and its associated persons and entities allegedly mobilised substantial funds received from a large number of investors, said the ED. ED's preliminary analysis of information obtained from banks and other records indicates extensive movement of funds through business, personal and intermediary accounts, including transfers to stock brokers, fixed-deposit accounts, related persons and other beneficiaries. "The investigation has also identified a financial nexus among Shivam Associates, Shivanand Siddappa Neelannavar, Subhash Ramagouda Nandargi, Mahesh S Neelannavar, Shivam Productions, Shivam Lifeline Pvt Ltd, Shivam Sevaa (OPC) Pvt Ltd and other associated persons and entities," said the federal agency in a statement. "Analysis of the bank accounts and financial records of these persons and entities has revealed extensive and interconnected movement of funds." ED said its investigation further revealed that Shivanand Siddappa Neelannavar lured the public by promising the return of 3 per cent per month on the investment and deposit and accumulated approximately Rs 2110.97 crore from the public, against which repayments amounting to approximately Rs 333.89 crore have been identified during search action. Accordingly, the agency said, an amount of approximately Rs 1,777.08 crore out of Proceeds of Crime generated through this process is yet to be traced. Further, ED said, it has also been gathered that a commission of 0.5 per cent was paid to leaders (commission agents) who are channelised for luring the public for making investment. During the search operations, the ED said, it recovered and seized various incriminating documents and digital evidence indicating the generation, movement, layering and parking of Proceeds of Crime. "The search also resulted in the recovery and seizure of incriminating records relating to monetary transactions, diversion and parking of funds, investments in immovable properties and dealings with various persons and entities associated with the accused. The material and digital evidence recovered during the search is being examined," added the agency. (ANI)
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