Home / Crime and Justice / CID Busts Massive Ponzi Scheme, Rs 660 Crore Shortfall
CID Busts Massive Ponzi Scheme, Rs 660 Crore Shortfall
7 Jun
Summary
- Rs 2,400 crore Ponzi scheme defrauded over 40,000 investors.
- Significant funds lost in stock market, leaving Rs 660 crore shortfall.
- Authorities are recovering assets to distribute to affected individuals.
The Crime Investigation Department (CID) has revealed a large-scale Ponzi scheme totaling Rs 2,400 crore, operated by Shivananda Neelannavar. This elaborate fraud impacted over 40,700 investors, leaving them in financial distress. The scheme involved using new investors' money to pay earlier ones until payouts exceeded new collections.
Investigations indicate a significant financial loss, with Rs 540 crore invested in the stock market, leading to a Rs 170 crore loss. This has created a Rs 660 crore shortfall, though authorities anticipate recovering Rs 330 crore. Neelannavar also illegally transferred Rs 55 crore to personal accounts, with luxury cars already seized.
The CID is working to recover these funds for distribution to the remaining investors. Cooperation with Maharashtra police is underway, as the highest investment originated from that neighboring state. The case has been transferred to the BUDS Act authority for overseeing the return of money to the public.
