The Directorate of Enforcement (ED) conducted searches on 20th November 2023, invoking the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The focus of the investigation was a Ponzi Scheme orchestrated by individuals associated with the partnership firm M/s Pranav Jewellers, headquartered in Trichy.
During the meticulous searches, ED officials unearthed a trove of evidence, including various incriminating documents. Notably, a substantial sum of unexplained cash amounting to Rs 23.70 lakh and bullion/gold jewelry weighing 11.60 kg were seized during the operation.
The ED’s probe originated from an FIR registered by the Economic Offences Wing in Trichy against M/s Pranav Jewellers and others. The allegations stated that the company had amassed a staggering Rs 100 Crore from the public through a gold investment scheme, promising lucrative returns. Shockingly, M/s Pranav Jewellers failed to fulfill its promise, leaving investors empty-handed.
The ED’s investigation shed light on a complex web of deceit, revealing that M/s Pranav Jewellers and its accomplices had deceived the public by diverting funds to shell entities and entry providers under the guise of purchasing bullion and gold ornaments.
What’s more, the searches exposed that the suppliers listed in M/s Pranav Jewellers’ books were, in fact, entry providers. These individuals, under the scrutiny of the investigation, admitted to facilitating adjustment and accommodation entries totaling over Rs 100 crores. Additionally, they confessed to providing cash to the accused persons as an alternative to bank payments.
The ED’s actions mark a crucial step in unraveling the layers of this alleged Ponzi Scheme, as further investigation is currently underway.
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