Belagavi: Shivanand Neelannavar, proprietor of Shivam Associates and the prime accused in a multi-crore illegal deposit scam, has gone untraceable after recently securing bail, leaving hundreds of anxious depositors struggling to locate him.According to official estimates, the scam is valued between Rs 2,400 crore and Rs 4,500 crore, affecting 35,000 to 45,000 investors across Karnataka — including Belagavi, Yadgir, Kalaburagi and Hubballi—and parts of Maharashtra such as Pune, Kolhapur, Sangli and Satara.Officials said the declared figures largely reflect deposits made through formal banking channels. However, a substantial portion of the funds were allegedly collected in cash, which was neither documented nor routed through accounts. These funds are suspected to have been diverted into real estate investments in India and abroad.Following Neelannavar’s release, depositors — particularly those who made large cash investments — have intensified efforts to trace him. Many have frequently visited his residence and offices in Shivabasav Nagar, making inquiries in the surrounding areas, but without success.Neelannavar was arrested on May 15 under the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019, and the Karnataka Protection of Interest of Depositors in Financial Establishments (KPID) Act, 2004, after raids led by assistant commissioner Shravan Nayak.He was initially remanded in 10 days of police custody, followed by 14 days of judicial custody and later 10 days in CID custody. With no reported objection from the CID during bail proceedings, he was granted bail, raising concerns among investors.Depositors have expressed panic, citing past experiences with similar cases handled by the CID. A group of investors from Pune, who reportedly invested crores, has been camping in Belagavi for the past few days.“We have been searching for Neelannavar for three days, but have not been able to trace him. We will not leave without meeting him,” one of the depositors said.
