ED issues summons to actor Prakash Raj in Rs 100-cr Ponzi scheme
PTC News Desk: The Enforcement Directorate (ED) has summoned actor Prakash Raj in connection with the money laundering case involving Pranav Jewellers.
Prakash Raj served as the 'Brand Ambassador' for Pranav Jewellers, a partnership based in Trichy, Tamil Nadu. The actor is summoned to appear before its Chennai office in connection with the case.
According to reports, the federal agency served summons on Prakash Raj in order to obtain information about the payments he received from Pranav Jewellers.
The move comes after the ED conducted searches on November 20 in the case of a Ponzi scheme run by certain accused persons under the guise of Pranav Jewellers under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Various incriminating documents, unexplained cash of Rs 23.70 lakh, bullion, or gold jewellery weighing 11.60 kg were seized during the searches.
The ED launched an investigation based on a First Information Report filed by Trichy's Economic Offences Wing against Pranav Jewellers and others, alleging that the firm collected Rs 100 crore from the public under the guise of a gold investment scheme promising high returns. Pranav Jewellers did not return the money to the investors.
According to an ED investigation, Pranav Jewellers and other connected persons defrauded the public by diverting public funds to shell entities and entry providers under the guise of purchasing bullion or gold ornaments.
The ED's November 20 searches revealed that the supplier parties in Pranav Jewellers' books were entry providers, who confessed to providing adjustment and accommodation entries to the firm for amounts exceeding Rs 100 crores and also confessed to giving cash to the accused persons in lieu of bank payments during the investigation.
- ANI
