New Delhi: Actor Prakash Raj has been summoned by the Enforcement Directorate (ED) for questioning in connection with an alleged Rs 100 crore Ponzi scheme linked to a jeweller.
Raj was the brand ambassador of Pranav Jewellers, a chain accused of running the scam.
The summons followed the raids conducted by ED on November 20 at the properties of the jewellery chain based out of Tiruchirapalli under the provisions of the Prevention of Money Laundering Act (PMLA).
The probe agency had searched branches of the firm, which has branches in several places in Tamil Nadu and Puducherry, including Chennai, for allegedly running a Ponzi scheme and duping investors of ₹ 100 crore.
The actor has not given a statement on the matter yet.
The Ponzi scheme, allegedly run by 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.
The stores run by Pranav Jewellers shut down in October. EOW had filed a case against the owner, Madhan and lookout notices had also been issued against him and his wife earlier this month.
The ED in a statement yesterday said ₹ 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 an amount of over ₹ 100 crore and also "confessed" to giving cash to the accused persons in lieu of bank payments, the ED alleged.