Actor Prakash Raj has been summoned by the Enforcement Directorate (ED) for questioning in connection with an alleged Rs 100 crore ponzi and fraud case against a Tiruchirapalli-based jewellery group. Prakash Raj (58), a vocal critic of the BJP, has been a brand ambassador of this company. He has been asked to depose before the ED in Chennai next week.
The investigation pertains to a case against Pranav Jewellers, a partnership firm based in Tiruchirapalli, whom it had raided on November 20 and claimed to have seized 'unexplained' cash of Rs 23.70 lakh and some gold jewellery.
About Ponzi Scheme
The ponzi scheme, allegedly run by the entity Pranav Jewellers, has come under the ED's scrutiny based on a First Information Report (FIR) lodged by the Economic Offences Wing (EOW) in Trichy against Pranav Jewellers and others involved in the alleged financial wrongdoing. According to the FIR, 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, but it failed to fulfil its promise, the probe agency said in a statement.
"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 had said in the statement yesterday.
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 Pranav Jewellers for amounts of over Rs 100 crore and 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.
(With PTI Inputs)
