ED seizes assets worth ₹427 crore tied to Belagavi Ponzi mastermind

The Enforcement Directorate has attached assets worth ₹427.16 crore belonging to Shivanand Siddappa Neelannavar, the alleged mastermind of a ₹2,459‑crore Ponzi scheme in Belagavi. The attachment order was issued on Friday by the ED’s Mangaluru Sub‑Zonal Office under the Prevention of Money Laundering Act, 2002. The seized movable and immovable assets include fixed deposits, bank balances, share‑market holdings, agricultural land, family bungalows and bookings of apartments in residential projects. Investigators say large parts of the collected money were funneled into risky stock‑market trades, causing net losses of ₹185.95 crore. About ₹25 crore was routed through Shreemata Co‑operative Credit Society Ltd. and Dhanashree Multipurpose Co‑operative Society Ltd., turned into fixed deposits and later used as security for loans taken in the names of associates to buy land. Family members also received funds: wife Sangeeta and minor son Siddhant held accounts that received portions of the money. Business ventures linked to Neelannavar – Shivam Sevaa (OPC) Pvt. Ltd., which received ₹19 crore, Shivam Lifeline Pvt. Ltd. and Shivam Foods – were funded with the proceeds. The ED identified 42 immovable properties, ranging from agricultural plots to family bungalows and apartment bookings. Neelannavar was arrested on August 13 2026. On October 9, the agency filed a prosecution complaint in the Mangalore PMLA court, seeking trial of five accused, including Neelannavar. Further investigation continues.

Context

Large‑scale Ponzi schemes often involve moving investor money into unrelated businesses and personal accounts, making recovery difficult and prompting authorities to use asset‑attachment powers under the PMLA.