The Enforcement Directorate (ED) has called actor Prakash Raj to appear for questioning about a purported Rs 100 crore ponzi scheme and fraud case against a jewelry business situated in Tiruchirapalli. This company features Prakash Raj (58), a well-known opponent of the BJP, as a brand ambassador. Next week in Chennai, he is scheduled to give a deposition before the ED.
This inquiry concerns a case against Pranav Jewellers, a Tiruchirapalli-based partnership firm, which was raided on November 20 and accused of seizing some gold jewels and ‘unexplained’ cash worth Rs 23.70 lakh.
About Ponzi Scam
Based on a First Information Report (FIR) filed by the Economic Offences Wing (EOW) in Trichy against Pranav Jewellers and other parties connected to the alleged financial malfeasance, the ED is investigating the ponzi scheme, which is purportedly operated by the firm Pranav Jewellers.The investigating agency stated in a statement that Pranav Jewellers and associates allegedly took in Rs 100 crore from the public under the pretense of a gold investment plan that offered significant returns, but ultimately fell short of its promises.
“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 mentioned.
“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 added.
