Two private investment firms under scanner for likely ponzi schemes

Officers of the Belagavi district administration have launched investigation against two private investment firms following allegations that they collected crores of rupees from the public by promising unusually high monthly returns.Acting on the directions of District Magistrate Mohammad Roshan, who is also the Deputy Commissioner, a team comprising officials from the Revenue Department, Cooperation Department and the Police, led by Sub-Divisional Officer Shravan Kumar Naik, carried out simultaneous investigation at the offices of Growdhan LLP in Tilakwadi and City Index on Mahatma Phule Road.Officials examined financial records and other relevant documents during the exercise.Investigators scrutinised financial transactions, investor records and related documents, with the verification process continuing till midnight.According to Sub-Divisional Officer Shravan Kumar Naik, initial findings suggest that 1,100 investors have deposited approximately ₹38 crore with Growdhan LLP.Officials believe that these funds were accepted in the form of loans.In the case of City Index, preliminary records indicate that nearly 1,500 investors have invested ₹30 crore.The funds were reportedly mobilised through debentures.Although the company is said to be registered with SEBI, officials are examining its legal compliance, business operations and financial transactions in detail.The preliminary investigation report on Growdhan LLP has been submitted to the District Magistrate. The inquiry report of City Index will be submitted later, sources said. Published - July 19, 2026 07:10 pm IST