Actress Sunny Leone has been questioned by the Karnataka Criminal Investigation Department (CID) in connection with the sprawling ₹2,400 crore Shivam Associates investment fraud. The inquiry, which took place on Wednesday, focused on a ₹1 crore payment Leone received for her appearance in a film produced by a key accused in the massive scheme.
Tracing Funds in a Multi-Crore Scam
The CID's investigation into Shivam Associates and its promoter, Shivanand Neelannavar, centers on allegations that Neelannavar collected funds from 407,000 individuals through unapproved investment and deposit schemes. Authorities are meticulously examining financial transactions, including those linked to the film industry, to trace the flow of investor money.
Leone was reportedly paid approximately ₹1 crore for her role in the song 'Dingara Billi Naanu' in the 2023 Kannada film Champion, which was produced by Neelannavar. The CID has issued a notice to Leone, seeking detailed information regarding the nature and purpose of these financial transfers.
Investigation Details and Scope
According to CID Deputy Inspector General Bhimashankar Guled, some of the money collected from investors was disbursed to various artists and actresses, including Leone. Investigators have uncovered a staggering 36,200 pages of transactions from a single bank account, revealing that 40,700 small investors sent money to a Belagavi businessman, with a portion subsequently moving towards the film sector.
The probe highlights the collapse of Shivam Associates, which allegedly amassed around ₹2,400 crore in unapproved deposits. Initial findings suggest that about ₹540 crore was invested in the stock market, resulting in a loss of approximately ₹170 crore. The remaining funds are spread across more than 30 bank accounts, and forensic reconstruction of these complex transactions is ongoing. The CID's efforts now extend to scrutinizing payments made to various film personalities as part of their comprehensive strategy to recover investor funds.