Intro
Dr. Guled said crores continued to be deposited even after CID case, with investors still encouraging new investments
BELAGAVI
CID Deputy Inspector General Dr. Bhimashankar Guled has warned the public against investing in Shivam Associates, stating that people continue to deposit money into the company despite an ongoing investigation into alleged financial fraud. He said the company has collected nearly Rs 2,400 crore from around 40,700 investors and that the probe has uncovered large-scale irregularities.
Addressing a press conference in Belagavi, Dr. Guled said the company allegedly operated by using funds from new investors to pay returns to earlier investors. He explained that such a system eventually collapses when incoming investments become insufficient to meet promised payouts. According to the investigation, a significant amount of money collected from investors was diverted into other activities, including stock market investments.
The CID officer said the investigation has revealed a financial shortfall of around Rs 660 crore. He added that authorities expect to recover nearly Rs 330 crore as part of the ongoing legal process. Investigators have also found that one of the company’s partners allegedly received illegal transfers amounting to Rs 55 crore. Several luxury vehicles linked to the accused have already been seized, while more assets are expected to be attached in the coming days.
Dr. Guled said that even after the registration of a criminal case and CID investigation, fresh deposits worth several crores of rupees continued to enter the company’s accounts. He expressed concern that some existing investors were encouraging others to invest despite the ongoing probe. He said this unusual situation forced the CID to address the public directly through a press conference.
The investigation has identified multiple bank accounts connected to the transactions, and authorities are examining thousands of financial records. The CID is also investigating transactions involving individuals from neighbouring Maharashtra with support from local police there. Officials said notices may be issued to anyone found to have received money connected to the case.
Dr. Guled urged the public to stay away from schemes promising unusually high returns of 36 percent to 60 percent, warning that such offers are unrealistic and often fraudulent. He reminded citizens that collecting deposits without approval from the Reserve Bank of India is illegal and appealed to people to report anyone promoting such investment schemes.
