Karnataka: Probe deepens into alleged Rs 4,500 crore scam involving controversial activist
Bengaluru: Karnataka Police have intensified the investigation into the alleged Rs 4,500 crore fraud case involving controversial social activist Shivananda Neelannanavar, who was arrested by the police in Belagavi city, officials said on Saturday.
The accused is charged with misappropriating thousands of crores of rupees invested by members of the public and former soldiers.
Shivananda Neelannanavar, owner of Shivam Associates, is alleged to have made controversial speeches, organised large-scale events and offered exorbitant interest rates to attract investments. He is also accused of aggressively campaigning on social media platforms. A video of him claiming that he could become the Chief Minister whenever he wanted has gone viral on social media following his arrest.
Police conducted raids at two offices belonging to him in Shivabasava Nagar and seized documents related to financial transactions and public investments. Following the raids, Shivananda Neelannanavar was arrested late at night.
Authorities stated that the offices and residence of the accused have been sealed, and a report has been submitted to the Deputy Commissioner.
Preliminary investigations revealed that the accused allegedly collected investments worth nearly Rs 4,500 crore from around 40,000 to 45,000 people. There have also been demands for the case to be handed over to a specialised investigating agency such as the Criminal Investigation Department (CID).
Investigations further revealed that the norms prescribed by the Reserve Bank of India (RBI) were allegedly not followed while accepting large investments. Officials also found that proper documentation related to the investments had not been maintained. Most of the transactions were reportedly carried out online.
Recognising the seriousness of the case, Belagavi Deputy Commissioner Mohammed Roshan has ordered an investigation under the Depositors’ Interest Protection Act.
Amid the raids, the accused released an audio clip assuring investors that the situation would be resolved within two to three days. He also made a special appeal to women investors not to panic.
Police have taken up further investigation.