ED files prosecution complaint in ₹2,459 crore ponzi scam; over 35,000 investors duped

By The Hindu Staff

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ED files prosecution complaint in ₹2,459 crore ponzi scam; over 35,000 investors duped — Photo credit: The Hindu

A file photo of Shivanand Siddappa Neelannavar. | Photo Credit: SPECIAL ARRANGEMENT

The Directorate of Enforcement (ED) has filed a prosecution complaint against five persons and entities, including alleged kingpin Shivanand Siddappa Neelannavar and his firm, Shivam Associates, in connection with an alleged ₹2,459 crore Ponzi scam, cheating more than 35,000 investors.

The complaint was filed before the III Additional District and Sessions judge in Mangaluru on October 9, seeking the conviction of the accused in the money-laundering case.

Neelannavar was arrested on August 13, 2026, and is currently in judicial custody.

According to the ED investigation, Neelannavar and his associates allegedly collected ₹2,459.49 crore by promising investors assured returns of 3% per month and a referral commission of 0.5% for bringing in new investors. Neelannavar reportedly referred to the network’s agents as “leaders”.

The agency alleged that a substantial portion of the collected money was rotated to repay earlier investors and sustain confidence in the scheme, while the remaining funds were diverted for personal enrichment. The principal amount of ₹2,125.60 crore allegedly remained unpaid to investors.

Originally published by The Hindu on Oct 10, 2026 Read the full article at thehindu.com

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