The Enforcement Directorate (ED) said on Wednesday that it has carried out searches at the premises linked to Pranav Jewellers in Trichy in connection with a ponzi scheme case.
The ED said the searches were conducted on Monday under the provisions of the Prevention of Money Laundering Act (PMLA) in the case of a ponzi scheme run by certain accused persons in the name of Pranav Jewellers, a partnership firm based out of Trichy.
During the searches, various incriminating documents, Rs 23.70 lakh unaccounted cash, and gold jewellery weighing 11.60 kg were seized.
The ED said that its probe revealed that Pranav Jewellers and other connected persons cheated the public by diverting public funds to shell entities or entry providers under the garb of purchase of bullion or gold ornaments.
The ED said that its searches also revealed that the supplier parties in the books of Pranav Jewellers were entry providers, who during the investigation confessed to have provided adjustment or accommodation entries to Pranav Jewellers for amounts of over Rs 100 crore and also confessed to have given cash to the accused persons in lieu of bank payments.
The ED probe is based on an FIR registered by Economic Offences Wing, Trichy, against Pranav Jewellers and others alleging that Rs 100 crore was collected from public by it under the guise of a gold investment scheme with the promise of high returns.
Pranav Jewellers failed to return the amount to the investors.
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