ED summons Prakash Raj in ₹100 crore ponzi scam linked to Pranav Jewellers

Prakash Raj, famous actor, film director and producer, has been summoned by the Enforcement Directorate (ED) for questioning in connection with a money laundering case linked to an alleged ₹100 crore ponzi and fraud case against Tiruchirapalli-based Pranav Jewellers, PTI reported on Thursday.

The summons followed a probe against Pranav Jewellers, a partnership firm, whom the ED had raided on November 20 under the provisions of the Prevention of Money Laundering Act (PMLA) and claimed to have seized "unexplained" cash of ₹23.70 lakh and some gold jewellery.

Also Read | Black Friday Sale 2023: Ajio to Croma, deals and offers from Indian retailers

The 58-year-old actor has been a brand ambassador for this company. He has been asked to depose before the ED in Chennai next week.

The ED has indicated that Prakash Raj's summoning is part of the broader investigation into the alleged bogus gold investment scheme floated by Pranav Jewellers, India Today reported citing sources.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

The federal agency said in a statement on Wednesday said Pranav Jewellers collected ₹ 100 crore from the public under the guise of a gold investment scheme that promised high returns. However, the company not only failed to fulfil its commitment but also didn't return the invested money to the investors, leaving them in the lurch.

Also Read | RBI imposes monetary penalty on five co-operative banks. Details here

"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 purchase of bullion/gold ornaments," the ED statement read.

The ponzi scheme, allegedly run by the Pranav Jewellers, came under the ED's scanner based on an FIR lodged by the Economic Offences Wing (EOW) in Trichy against the group and others involved in the alleged financial wrongdoing.