The Enforcement Directorate (ED) has summoned actor Prakash Raj for questioning over an alleged Rs 100 crore Ponzi scheme linked to a jeweller.
The Enforcement Directorate has summoned actor Prakash Raj for questioning in a money laundering case linked to the alleged Rs 100-crore ponzi and fraud case against a Tiruchirapalli-based jewelery group, official sources said on Thursday.
The investigation pertains to a case filed against Pranav Jewellers, a Tiruchirapalli-based partnership firm, which ED had raided on November 20 and claimed to have seized “unexplained” cash amounting to Rs 23.70 lakh and some gold jewellery.
Raj (58), a national award-winning actor, has become the brand ambassador of this company. He was asked to testify before the federal agency in Chennai in the first week of December. According to sources, the ED wants to record his statement and understand some payments and some other financial transactions the company allegedly made to the Bengaluru-based actor-politician.
Raj, who has acted in Hindi, Kannada, Telugu and Tamil films, has been an outspoken critic of the BJP. He unsuccessfully contested the 2019 Lok Sabha elections as an independent candidate from the Bengaluru Central seat. The ED case stems from an FIR by the Economic Offenses Wing of the Tamil Nadu Police.
According to the police complaint, the federal agency said in a notification issued on Wednesday that Pranav Jewelers and others collected Rs 100 billion from the public in the name of gold investment scheme with the promise of high returns.
“Pranav Jewelers failed to refund this amount to such investors and the firm (Pranav Jewellers) and other associated persons cheated the public by diverting public funds to shell entities/entry providers under the guise of purchasing bullion/gold jewellery,” he said.
The supplier parties on Pranav Jewelers’ books were entry providers who, during investigation, “confessed” to providing adjustments and fake accommodation entries to Pranav Jewelers amounting to over Rs 100 crore and also “confessed” to giving cash to the accused. ED requested in lieu of bank payments.
“During the searches, various incriminating documents, unexplained cash amounting to Rs 23.70 lakh, bullion and gold jewelery weighing 11.60 kg were seized,” the investigation agency said.
