The investigation into the alleged ₹2,400 crore investment fraud involving Shivam Associates has taken a fresh and unexpected turn, with Karnataka’s Criminal Investigation Department (CID) issuing notices to Bollywood actor Sunny Leone and several other film personalities. Officials clarified that the notices are part of the ongoing inquiry and do not imply any wrongdoing, but are intended to verify the nature and purpose of certain financial transactions uncovered during the probe.
The case centres around Belagavi-based Shivam Associates and its promoter Shivanand Neelannavar, who is accused of collecting massive sums from investors through allegedly unauthorised investment schemes. According to investigators, the accused allegedly attracted thousands of people by promising unusually high returns and mobilised funds over several years through a wide-reaching financial network.
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CID officials stated that approximately 40,700 investors were reportedly involved in the scheme, with total collections estimated at around ₹2,400 crore. A significant portion of these investors are believed to be from neighbouring Maharashtra, indicating the cross-state scale of the alleged operation. Authorities suspect that the scheme functioned for years before complaints began surfacing from affected investors.
Investigators further revealed that a portion of the collected funds was channelled into stock market investments. Around ₹540 crore is believed to have been deployed in various market transactions. However, these investments reportedly resulted in substantial losses, estimated at nearly ₹170 crore. Officials are examining whether these losses contributed to the collapse of the investment scheme and triggered investor backlash.
A key focus of the ongoing investigation is tracing the complete flow of money. CID teams are analysing bank accounts, transaction histories, and intermediary entities to determine how investor funds were routed. During this process, officials identified financial transactions that reportedly led to payments linked with multiple individuals, including film industry personalities, prompting the issuance of notices.
Authorities stressed that the notices are procedural in nature and aim to clarify whether the payments were related to endorsements, contracts, services, or any other legitimate business arrangement. Investigators are seeking documentation and explanations to establish the purpose of these transactions and determine whether any part of the investor funds was misused or diverted.
The scale of the financial network under scrutiny has further complicated the investigation. CID officials disclosed that the accused allegedly operated through nearly 30 bank accounts. One of these accounts alone reportedly contains transaction records running into more than 36,000 pages, highlighting the vast volume and complexity of financial activity involved in the case.
Experts familiar with financial crime investigations note that large-scale investment frauds often involve layered transactions designed to obscure the original source of funds. Money is frequently routed through multiple accounts, entities, and intermediaries, making it difficult to trace final beneficiaries without detailed forensic analysis. In this case, authorities are examining digital records, banking data, and investment documents to reconstruct the flow of funds.
Officials also emphasised that the investigation remains in its early to intermediate stages. No criminal liability has been established against any film personality or external individual mentioned in the notices. The CID reiterated that the purpose of the inquiry is to gather information and ensure complete transparency regarding financial movements linked to the scheme.
The Shivam Associates case has emerged as one of Karnataka’s most significant alleged investment frauds in recent years, raising concerns over regulatory oversight and investor protection mechanisms. Thousands of investors are believed to have been affected, and many are now seeking clarity on the status of their funds.
As the investigation progresses, CID is expected to continue examining financial records, digital evidence, and cross-border transaction trails. Further questioning of individuals linked to the scheme, along with forensic audits of banking operations, is likely to play a crucial role in determining how investor money was utilised and whether it was systematically diverted. The outcome of the probe may ultimately reveal the extent of the alleged network and identify those responsible for the financial misappropriation.
