Actor Prakash Raj summoned by ED in ponzi scam-linked money laundering case

The Enforcement Directorate (ED) has asked actor Prakash Raj to appear before it for questioning in connection with a ponzi scam-linked money laundering case involving Pranav Jewellers.

Prakash Raj is the brand ambassador of the jewellery and he is summoned to establish whether he has any links to the ponzi scheme and the payments he received from them for endorsement. His statement will be recorded under the Prevention of Money Laundering (Prevention) Act.

An outspoken critic of the Modi government, he has been asked to appear before investigators in Chennai next week.

The ED had on Monday conducted raids at the premises of Pranav Jewellers located in Tiruchirappalli and seized "unexplained" cash of Rs 23.70 lakh and gold weighing 11.60 kg. The firm is accused of duping investors by collecting Rs 100 crore from them in the guise of gold investment.

The case registered by the ED arose out of an FIR filed by the Tamil Nadu Police Economic Offences Wing.

Pranav Jewellers and others collected Rs 100 crore from the public under the guise of a gold investment scheme with the promise of high returns. However, it allegedly failed to return the amount to such investors and the firm 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.

According to the ED, the supplier parties in the books of Pranav Jewellers were entry providers, who during the investigation, "confessed" to providing adjustment and bogus accommodation entries to the firm for amounts of over Rs 100 crore. It also "confessed" to giving cash to the accused persons in lieu of bank payments, the ED claimed.

"During the searches, various incriminating documents, unexplained cash of Rs 23.70 lakh, bullion and gold jewellery weighing 11.60 kg was seized," the probe agency said.