The Enforcement Directorate (ED) has filed a prosecution complaint in Mangaluru against five individuals and entities over an alleged ₹2,459 crore Ponzi scheme that it says duped more than 35,000 investors. The ED complaint names alleged mastermind Shivanand Siddappa Neelannavar, and his firm Shivam Associates. Neelannavar, arrested on August 13, remains in judicial custody after the case was filed on October 9 before the III Additional District and Sessions Court in Mangaluru. According to the ED, investors were promised a guaranteed monthly return of 3%, with an extra 0.5% commission for referring new investors. The agency alleges that money collected from new investors was used largely to pay earlier investors, helping keep the scheme running and maintain trust, while the remaining funds were diverted for personal gains. The ED estimates that investors were left without repayment of their principal amount totalling ₹2,125.60 crore. It also alleges that scheme funds were diverted to stock markets, real estate and film production. The ED says a significant portion of the money was put into high-risk stock market trading, leading to net losses of ₹185.95 crore. The investigation traced around ₹25 crore to cooperative credit institutions, including Shreemata Co-operative Credit Society Ltd. and Dhanashree Multipurpose Co-operative Society Ltd. The ED alleges deposits were used to create fixed deposits, which were then used as collateral for loans taken in the names of associates to purchase land. The ED further alleges that funds from the scheme were transferred to bank accounts belonging to Neelannavar’s wife, Sangeeta, and his minor son, Siddhant, and also routed into related business ventures. Among the entities named is Shivam Sevaa (OPC) Pvt. Ltd., allegedly receiving ₹19 crore. Shivam Lifeline Pvt. Ltd. and Shivam Foods are also named. The ED also alleges that ₹5 crore collected from public deposits was diverted towards the commercial production of the Kannada feature film Champion. In August 2026, ED teams carried out searches at eight locations linked to the accused and associates across Belagavi, Chikkodi and Nipani. Officials seized financial documents, handwritten audit records, mobile phones and software-generated transaction data. The ED says it also froze bank balances and fixed deposits worth ₹2.02 crore held by key associates. The money-laundering probe follows an FIR filed at Malamaruthi Police Station in Belagavi under the Bharatiya Nyaya Sanhita, 2023, the Banning of Unregulated Deposit Schemes Act, 2019, and the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004.