Pranav Jewellers, a company situated in Trichy, is accused of taking ₹100 crore from the general public under the premise of a gold investment scheme, promising large returns.
Actor Prakash Raj has been summoned by the Enforcement Directorate (ED) in relation to a money laundering investigation against Pranav Jewellers, a partnership firm based in Trichy, which is accused of having taken ₹100 crore from the public under the guise of a gold investment scheme that promised large returns, according to people with knowledge of the development on Thursday.
Raj, the Pranav Jewellers brand ambassador, is allegedly “under the scanner” in this case, according to officials.
The ED raided the company on Monday because it was purportedly running a Ponzi scam.
The Enforcement Department (ED) stated in a statement on Wednesday that an investigation had shown that Pranav Jewellers and other associated individuals had defrauded the public by using public funds to pay entry providers or shell companies under the pretense of buying gold or silver ornaments.
Searches also showed that the supplier parties listed in the respective Jewellers’ books were entry providers. These parties later admitted to the investigation that they had given Pranav Jewellers adjustment or accommodation entries totaling more than ₹100 crores, as well as that they had given cash to the accused rather than bank payments.
The first information report (FIR) filed by the Economic Offences Wing (EOW), Trichy, which claimed that ₹100 crore was taken from the public by the company under the guise of a gold investment scheme with the promise of high returns, is the basis for the financial crimes probe agency’s money laundering investigation against Pranav Jewellers. It claimed that Pranav Jewellers did not reimburse these investors for their money.
Various incriminating documents, ₹23.70 lakh in unexplained cash, and 11.60 kg of gold jewelry were recovered by the CBI during raids on Monday.