New Delhi: Enforcement Directorate issued summons to actor Prakash Raj in an alleged ₹ 100-crore Ponzi scheme linked to a Pranav jewelers Ponzi scheme. He was the brand ambassador of Pranav Jewellers, a chain accused of running the scam.

According to the ED press note, the Trichy-based Pranav jewellers having branches in several places in Tamil Nadu and Puducherry, including Chennai. They allegedly running a Ponzi scheme and duping investors of ₹ 100 crore.

Prakash Raj, who had been the brand ambassador of the jeweller for a significant period, has not given a statement on the matter yet. Pranav Jewellers shut down their branches in Tamil Nadu, Puducherry in October.

Based on complaints, the Economic Offences Wing in Tamil Nadu’s Trichy filed a case against the owner, Madhan. Lookout notices had also been issued against the owner and his wife in November first week.

The ED in its statement said that ₹ 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.