Prakash Raj Summoned by ED in Connection to ₹100 Crore Ponzi Scheme

Renowned actor, film director, and producer Prakash Raj has been summoned by the Enforcement Directorate (ED) for questioning regarding his association with an alleged ₹100 crore ponzi and fraud case involving Tiruchirapalli-based Pranav Jewellers, according to PTI reports.

The ED’s summons to Prakash Raj come in the wake of an investigation into Pranav Jewellers, a partnership firm that underwent an ED raid on November 20 under the provisions of the Prevention of Money Laundering Act (PMLA). During the raid, the ED claimed to have seized “unexplained” cash amounting to ₹23.70 lakh and various gold jewelry items.

The 58-year-old actor has served as a brand ambassador for Pranav Jewellers and has been asked to appear before the ED in Chennai next week.

Sources indicate that Prakash Raj’s summoning is part of a broader inquiry into an alleged bogus gold investment scheme orchestrated by Pranav Jewellers, as reported by India Today.

In a statement released on Wednesday, the ED revealed that Pranav Jewellers had collected ₹100 crore from the public because of a gold investment scheme promising lucrative returns. However, the company failed to fulfill its commitments and neglected to return the invested funds to the investors, leaving them in financial distress.

“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 alleged ponzi scheme, attributed to Pranav Jewellers, came under the scrutiny of the ED based on an FIR filed by the Economic Offences Wing (EOW) in Trichy against the group and other individuals implicated in the purported financial wrongdoing.

Prakash Raj’s involvement as a brand ambassador for Pranav Jewellers has brought him into the investigation as authorities seek to unravel the intricacies of the fraudulent gold investment scheme and those associated with it. The ED’s inquiry aims to shed light on the alleged financial irregularities committed by Pranav Jewellers and affiliated entities.