Ponzi net tightens: 3 more firms under scanner in Belagavi

Belagavi: In the wake of recent raids on Shivam Associates and Adityaraj Capital, the district administration has intensified its crackdown on fraudulent deposit schemes, with three more firms now under scrutiny. Authorities indicated that action against these entities is likely within the next one to two weeks.

The two firms recently raided are accused of mobilising deposits worth thousands of crores from about 35,000 and 7,000 investors, respectively. Investigators noted both entities lacked transparency in their operations and failed to explain how they promised monthly returns of 3 to 5 per cent—returns that are not legally guaranteed in stock market-linked investments.

Deputy commissioner Mohammad Roshan said the administration has already acted against two firms running Ponzi-style schemes and has identified three more with a similar modus operandi. “We have tracked these firms, their bank transactions, investment patterns and fund flow. We are aware of the banks, branches and account details through which the money is being routed,” he said.

Issuing a caution, Roshan urged investors to exercise due diligence before investing and verify the authenticity of firms and their regulatory approvals. Referring to a previous case, he said over 2,000 women in Belagavi taluk were duped in a chit fund scam last year, losing crores of rupees. “Despite repeated incidents, people continue to fall prey to such fraudulent schemes, which is unfortunate,” he added.

Roshan further indicated that the three firms under scrutiny have also been collecting deposits by offering unusually high returns. “It is our responsibility to protect investors from illegal operations that jeopardise the financial security of innocent families,” he said.

Meanwhile, CID DIG Bhimashankar Guled expressed concern that some investors continue to transfer money to Shivam Associates accounts online despite the raids and freezing of operations. Public works minister Satish Jarkiholi said he would direct investigating agencies to expedite the probe and prioritise recovery and return of funds to genuine depositors.

The emergence of multiple fraudulent financial schemes in Belagavi district has triggered widespread panic among investors, many of whom have deposited significant sums running into lakhs and crores.