A farmer from Kagwad in Belagavi district has filed a case of criminal cheating against Shivanand Neelannanavar, promoter of Shivam Associates.
The complaint by Krishna Appanna Apraj filed at the Kagawad Police Station accuses Mr. Neelannavar of financial fraud also.
Complainant Mr. Apraj said that on the advice of Mr. Neelannavar, he had invested around ₹5lakh in Shivam Associates (ACCUMEN).
“He promised returns of 36% on our investments. However, he did not pay us either the interest or principal amounts,” he said in the complaint.
This the first complaint against the firm filed by a private individual. The initial FIR was registered based on a complaint by a government officer who conducted an investigation of the affairs of the firm.
A local court has remanded the accused in police custody for 10 days.
The case has been transferred to the CID as the amount involved has crossed over ₹50 crore.
A team, led by Deputy Inspector-General of Police, CID, Bheemashankar S. Guled, has come to Belagavi to conduct further inquiries.
The city police are coordinating with them. Police sources said that the accused will be shifted to Bengaluru, for questioning.