Actor Prakash Raj has been summoned by Enforcement Directorate (ED) for questioning in connection with an alleged ₹100-crore Ponzi scheme involving Pranav Jewellers, of which he was the brand ambassador. The ED conducted raids on the jewelry chain’s branches in Tamil Nadu and Puducherry, including Chennai, accusing them of running a Ponzi scheme that defrauded investors of ₹100 crore.
Despite serving as the brand ambassador for a considerable period, actor Prakash Raj has not issued a statement on the matter. As reported by NDTV, Pranav Jewellers’ stores were closed in October, leading to a case filed against the owner, Madhan, by the Economic Offences Wing in Trichy, Tamil Nadu, based on complaints. Lookout notices had been issued for the owner and his wife earlier this month.
The ED, in a recent statement, revealed that Pranav Jewellers collected ₹100 crore under the guise of a gold investment scheme promising high returns. However, the promised returns never materialized, and the invested amount was not returned to the investors.
According to the ED, Pranav Jewellers failed to repay the investors, diverting public funds to shell entities and entry providers under the pretext of purchasing bullion/gold ornaments. The investigation uncovered that supplier parties in Pranav Jewellers’ books were entry providers, who admitted to providing adjustment and bogus accommodation entries, totaling over ₹100 crore. They also confessed to providing cash to the accused persons instead of bank payments, as alleged by the ED.
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