Actor Prakash Raj has been summoned by the Enforcement Directorate (ED) for questioning in connection with an alleged â¹100-crore Ponzi scheme linked to a jeweller.
Mr. Raj served as the brand ambassador for Pranav Jewellers, a chain accused of orchestrating the scam.
The ED conducted raids on branches of the Trichy-based jewellery chain, which has outlets in various locations in Tamil Nadu and Puducherry, including Chennai. The chain is accused of running a Ponzi scheme and defrauding investors of â¹100 crore.
Prakash Raj, who had a significant tenure as the brand ambassador for the jeweller, has not issued a statement on the matter yet.
The stores operated by Pranav Jewellers closed in October, and based on complaints, the Economic Offences Wing in Tamil Nadu's Trichy filed a case against the owner, Madhan. Lookout notices were also issued against the owner and his wife earlier this month.
In a recent statement, the ED revealed that Pranav Jewellers had collected â¹100 crore under the guise of a gold investment scheme promising high returns. However, the promised returns did not materialize, and the invested amount was not returned to the investors, according to the ED.
"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 the purchase of bullion/gold ornaments," stated the ED.
The supplier parties listed 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 exceeding â¹100 crore. They also "confessed" to providing cash to the accused persons instead of bank payments, the ED alleged.