Belagavi: Authorities on Friday night raided two finance firms in Belagavi — Grodhan LLP in Tilakwadi and City Index on Mahatma Phule Road — for allegedly collecting public deposits by promising exorbitant returns. The operation, led by sub-divisional magistrate Shravan Kumar Nayak under the direction of deputy commissioner Mohammad Roshan, follows recent action against Shivam Associates and Adityaraj Capital. Preliminary inquiries indicate that the firms lured investors with promised monthly returns of 4-5%.Acting on the deputy commissioner’s directions, a joint team comprising officials from the revenue, cooperation and police departments conducted simultaneous inspections at the two establishments.Officials scrutinised financial transactions, investor details and other records late into the night. Police personnel were deployed at both locations to maintain law and order during the operation.According to officials, preliminary investigations revealed that Grodhan LLP had collected nearly Rs 38 crore from around 1,100 investors. The firm is also alleged to have accepted cash deposits for investment purposes.In the case of City Index, investigators found that nearly 1,500 investors had invested around Rs 30 crore. The company allegedly mobilised funds through debentures. Authorities said City Index is registered with the Securities and Exchange Board of India (SEBI), and its statutory compliance and financial transactions are being examined in detail.Nayak said a preliminary inquiry report on Grodhan LLP will be submitted to the deputy commissioner, while the inspection of City Index will continue. Further legal action will be initiated after a comprehensive report is submitted.The raids were carried out following allegations of misuse of public funds. Cases have been registered at Tilakwadi and Shahapur police stations.
