Courts sends financial fraud accused to 10 days in police custody

A local court has remanded promoter of Shivam Associates Shivanand Neelannavar, who is facing the charge of violating financial regulations, to 10 days in police custody.

Officers of the Criminal Investigation Department and the city police produced him before the Second Additional District and Sessions Court here on Monday. Judge Gangadhar K.N. remanded him to custody for 10 days.

A team of officers led by Deputy Inspector-General of Police Bheemashankar Guled questioned the accused for over an hour.

Police sources said that he may be taken to Bengaluru for further questioning.

An inquiry by the Assistant Commissioner revealed that the accused collected money from 35,000 people promising them 36% interest, without obtaining approval from any financial regulator like the RBI or SEBI.

Offices of Shivam Associates have been closed and their transactions have been frozen following the investigation.