On November 20, 2023, the Directorate of Enforcement [ED] conducted searches in the case of a Ponzi Scheme organized by certain accused persons in the name of the entity M/s Pranav Jewellers, a partnership enterprise situated in Trichy, by the provisions of the Prevention of Money Laundering Act (PMLA), 2002. Various incriminating documents, unexplained cash of Rs 23.70 lakh, and bullion/gold jewellery weighing 11.60 kg were confiscated during the searches.
The ED launched an investigation into the FIR filed by the Economic Offences Wing, Trichy, against M/s Pranav Jewellers and others, alleging that Rs 100 crore was collected from the public under the premise of a gold investment program promising significant profits. M/s Pranav Jewellers did not repay the money to the investors.
The results of the ED inquiry showed that M/s Pranav Jewellers and other associated individuals had defrauded the public by using public funds to pay entry providers or shell companies while posing as buyers of gold or bullion jewellery.
Additionally, searches showed that the supplier parties listed in M/s Pranav Jewellers’ books were entry providers. During the investigation, these parties admitted to providing M/s Pranav Jeweller with adjustment and accommodation entries totalling more than Rs 100 crores, as well as to providing cash to the accused instead of bank payments. Additional research is currently being conducted.
