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ED files prosecution complaint in ₹2,459 crore ponzi scam…

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activePonzi / Investment SchemePan India

ED files prosecution complaint in ₹2,459 crore ponzi scam; over 35,000 investors duped

The Directorate of Enforcement (ED) filed a prosecution complaint against five individuals and entities, including an alleged kingpin and his firm Shivam Associates, regarding an alleged Ponzi scheme worth over ₹2,459 crore. The investigation claims the operation duped more than 35,000 investors by promising high monthly returns and referral commissions.

State

Multiple States

First reported

October 2026

Amount alleged

₹2,459 crore

Unpaid principal

₹2,125.60 crore

Investors duped

Over 35,000

Agency involved

Directorate of Enforcement (ED) and Malamaruthi Police Station

Arrests

The alleged kingpin was arrested and placed in judicial custody

Status

Prosecution complaint filed seeking conviction in the money-laundering case

The full story

Everything you need to know about this case, in one place.

According to investigators, the scheme collected large sums from the public while rotating a portion of the funds to pay earlier participants and maintain trust. The remaining capital was allegedly diverted for personal enrichment, real estate purchases, stock trading, and film production through various associated entities and cooperative credit societies.

Authorities conducted searches across multiple locations, resulting in the seizure of documents and electronic devices, as well as the freezing of specific bank accounts and fixed deposits. The alleged kingpin was arrested and placed in judicial custody as the legal proceedings move forward seeking a conviction in the money-laundering case.

Not yet reported: The articles do not specify the final court verdict or the total recovery amount expected beyond frozen assets worth ₹2.02 crore.

Where the case stands

The latest position in the reports we read.

A prosecution complaint has been filed before the court seeking the conviction of the accused, and the primary accused remains in judicial custody.

Who was affected

Described in general terms; we do not name victims.

More than 35,000 investors across multiple regions who were promised assured monthly returns and referral commissions.

Timeline

Key dates as reported, oldest first.

August 2026The ED conducted searches at eight premises linked to the accused and associates in Belagavi, Chikkodi, and Nipani.

August 13, 2026The alleged kingpin of the scheme was arrested.

October 9, 2026The ED filed a prosecution complaint before the III Additional District and Sessions judge in Mangaluru.

How the scam worked

The method described in the reports.

The scheme promised investors assured returns of 3% per month.
A referral commission of 0.5% was offered to participants for bringing in new investors.
Network agents who brought in new participants were reportedly referred to as leaders.
Collected funds were rotated to pay off earlier investors and sustain confidence in the operation.
Unpaid principal amounts and diverted funds were moved into high-risk stock trading, property purchases, cooperative credit societies, and a feature film.

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Sources and further reading

Optional. The full story is above; these are the original reports it was prepared from.

thehindu.comOriginal report The HinduOpens via Google News

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