Actor Prakash Raj has been summoned by the Enforcement Directorate (ED) for questioning in an alleged Rs 100-crore Ponzi scheme linked to a jeweller. Mr Raj was the brand ambassador of Pranav Jewellers, a chain accused of running the scam.
The ED had raided branches of the Trichy-based jewellery chain, which has branches in several places in Tamil Nadu and Puducherry, including Chennai, for allegedly running a Ponzi scheme and duping investors of Rs 100 crore.
The actor, who had been the brand ambassador of the jeweller for a significant period, has not given a statement on the matter yet.
The stores run by Pranav Jewellers shut down in October and, based on complaints, the Economic Offences Wing in Tamil Nadu's Trichy filed a case against the owner, Madhan. Lookout notices had also been issued against the owner and his wife earlier this month.
The ED in a statement yesterday said Rs 100 crore had been collected by Pranav Jewellers under the guise of a gold investment scheme that promised high returns. Not only did the returns not materialise, but the amount invested had also not been given back to the investors, the ED said.
"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 said in the statement.
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 amount of over Rs 100 crore and also "confessed" to giving cash to the accused persons in lieu of bank payments, the ED alleged.
