Actor Prakash Raj has been summoned by the Enforcement Directorate (ED) for questioning in connection with an alleged Ponzi scheme worth Rs 100 crore. The scheme is linked to Pranav Jewellers, a chain that the actor was the brand ambassador for. The ED had conducted raids on the jewellery chain’s branches in Tamil Nadu and Puducherry, including Chennai, as part of their investigation into the scam.
Pranav Jewellers is accused of running a Ponzi scheme and defrauding investors of Rs 100 crore. The company had enticed investors with a gold investment scheme that promised high returns. However, neither the promised returns nor the initial investments were returned to the investors.
The investigation revealed that Pranav Jewellers had diverted public funds to shell entities and entry providers under the guise of purchasing bullion and gold ornaments. The ED stated that the supplier parties involved in the scheme had confessed to providing adjustment and bogus accommodation entries to Pranav Jewellers, amounting to over Rs 100 crore. They also admitted to giving cash to the accused persons instead of making bank payments.
The actor, who had been associated with the jeweller for a significant period, has not yet commented on the matter. The stores operated by Pranav Jewellers were shut down in October following complaints. Subsequently, the Economic Offences Wing in Trichy filed a case against the owner, Madhan. Lookout notices were also issued against Madhan and his wife earlier this month.
The ED’s investigation into the Ponzi scheme is ongoing, and Prakash Raj’s summoning is a significant development in the case. The actor will be questioned by the authorities to gather more information and evidence related to the scam.
