ED Summons Actor Prakash Raj in Connection With Rs 100-Crore Jeweler-Linked Ponzi Scheme

Prakash Raj Summoned: Actor Prakash Raj has been called in for questioning by the Enforcement Directorate (ED) in connection with an alleged ₹100-crore Ponzi scheme associated with a jeweler. Mr. Raj served as the brand ambassador for Pranav Jewellers, a chain accused of orchestrating the scam.

The ED conducted raids on branches of the Trichy-based jewelry chain, which has outlets in various locations in Tamil Nadu and Puducherry, including Chennai. The allegations suggest that the jewelry chain operated a Ponzi scheme, defrauding investors of ₹100 crore.

Prakash Raj, who had a significant tenure as the jeweler's brand ambassador, has yet to make a statement regarding the matter. The stores operated by Pranav Jewellers closed down in October, prompting the Economic Offences Wing in Trichy, Tamil Nadu, to file a case against the owner, Madhan, based on complaints. Earlier this month, lookout notices were issued against the owner and his wife.

In a recent statement, the ED revealed that Pranav Jewellers collected ₹100 crore through a gold investment scheme that promised substantial returns. However, the promised returns failed to materialize, and the invested amount was not returned to the investors.

"Pranav Jewellers failed to return the amount to such investors, and the firm (Pranav Jewellers) and other connected persons cheated the public by diverting public funds to shell entities/entry providers under the garb of the purchase of bullion/gold ornaments," stated the ED.

According to the ED, the supplier parties in Pranav Jewellers' books were entry providers who, during the investigation, confessed to providing adjustment and bogus accommodation entries to Pranav Jewellers totaling over ₹100 crore. They also allegedly confessed to providing cash to the accused individuals instead of bank payments.