ED attaches Rs 427.16 crore in Belagavi Shivam Associates Ponzi case
The ED has provisionally attached assets worth Rs 427.16 crore in the Shivam Associates case, alleging Rs 2,459.49 crore was collected from over 35,000 investors on promises of 3% a month.
Key points
- The ED's Mangalore office provisionally attached fixed deposits, bank balances, shares and 42 properties worth Rs 427.16 crore on 30 October 2026.
- The ED alleges Rs 2,459.49 crore was collected from more than 35,000 investors with promises of assured returns of 3% a month.
- The attachment must be confirmed by the PMLA Adjudicating Authority; the accused are presumed innocent until proven guilty in court.
The Enforcement Directorate (ED) said on 31 October 2026 that its Mangalore sub-zonal office issued a provisional attachment order dated 30 October 2026 under the Prevention of Money Laundering Act (PMLA), 2002, attaching assets worth Rs 427.16 crore belonging to the main accused and persons and entities linked to him. The case concerns M/s Shivam Associates and others, in which the ED puts the total proceeds of crime at about Rs 2,459 crore.
What Happened
According to the ED, the attachment covers fixed deposits of Rs 367.78 crore with HDFC, ICICI, IDFC First, Kotak Mahindra, Ujjivan Small Finance and local co-operative societies, Rs 44.38 crore in 47 bank accounts, 42 properties worth Rs 13.69 crore, and shares worth Rs 1.32 crore frozen in CDSL accounts.
The ED's case is based on an FIR registered by Malamaruthi police station in Belagavi under the BNS, 2023, the Banning of Unregulated Deposit Schemes Act, 2019 and the KPID Act, 2004. The ED has alleged that the main accused and his associates collected Rs 2,459.49 crore from more than 35,000 investors by promising assured returns of 3% a month, plus a 0.5% referral commission for bringing in new investors.
The ED alleges that investor money was put into high-risk stock trading that lost Rs 185.95 crore, that about Rs 25 crore was routed through Shreemata Co-Operative Credit Society Ltd and Dhanashree Multipurpose Co-op Society Ltd to create deposits backing loans for land purchases, and that money went to family accounts and related businesses, including Rs 19 crore to Shivam Sevaa (OPC) Pvt Ltd.
The ED searched eight premises in Belagavi, Chikkodi and Nipani in August 2026 and froze deposits and accounts holding Rs 2.02 crore. The main accused was arrested on 13 August 2026, and a prosecution complaint against five accused persons and entities was filed before the PMLA Court, Mangalore, on 9 October 2026, the ED said.
What It Means
A provisional attachment is a temporary freeze that must be confirmed by the PMLA Adjudicating Authority. Readers can report unauthorised deposit schemes on RBI's Sachet portal at https://sachet.rbi.org.in.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
Named in this report, or spotted an error? Corrections and responses: editor@oquilia.com. We correct errors promptly and record responses from named parties.
Sources & Citations
- Enforcement Directorate press release — Enforcement Directorate