ED conducts search on Rs 100 crore Ponzi scheme, recovers cash, jewellery

Directorate of Enforcement (ED) has conducted searches on 20 November, 2023 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in the case of a Ponzi Scheme run by certain accused persons in the name of the entity M/s Pranav Jewellers, a partnership firm based out of Trichy. During the searches, various incriminating documents, unexplained cash of Rs 23.70 lakh, bullion/ gold jewellery weighing 11.60 Kg have been seized.
ED initiated investigation on the FIR registered by Economic Offences Wing, Trichy against M/s Pranav Jewellers and others alleging that Rs 100 Crore was collected from public by M/s Pranav Jewellers, under the guise of a gold investment scheme with the promise of high returns. M/s Pranav Jewellers failed to return the amount to such investors.
ED investigation revealed that M/s 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.
Searches also revealed that the supplier parties in the books of M/s Pranav Jewellers were entry providers, who during the investigation confessed to have provided adjustment/ accommodation entries to M/s Pranav Jewellers for amounts over Rs 100 crores; and also confessed to have given cash to the accused persons in lieu of bank payments.
Further investigation is under progress.