ED seizes cash, jewellery after raids on Tiruchirappalli-based jewellery firm in ponzi case
New Delhi, Nov 23 (PTI) The Enforcement Directorate has seized 'unexplained' cash of Rs 23.70 lakh and gold jewellery after conducting searches against a Tiruchirappalli-based jewellery group that allegedly duped investors by collecting Rs 100 crore from them in the guise of gold investment.
The probe agency carried out the raids on Monday against Pranav Jewellers, a partnership firm located in Tiruchirappalli, as part of a money laundering investigation against those who ran an alleged ponzi scheme.
The ED case stems from an FIR of the Tamil Nadu Police Economic Offences Wing.
According to the police complaint, Pranav Jewellers and others collected Rs 100 crore from the public under the guise of a gold investment scheme with the promise of high returns, the federal agency said in a statement on Wednesday.
'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,' it said.
The supplier parties in the books of Pranav Jewellers were entry providers, who during the investigation, 'confessed' to providing adjustment and bogus accommodation entries to Pranav Jewellers for amounts of over Rs 100 crore and also 'confessed' to giving cash to the accused persons in lieu of bank payments, the ED claimed.
'During the searches, various incriminating documents, unexplained cash of Rs 23.70 lakh, bullion and gold jewellery weighing 11.60 kg was seized,' the probe agency said. PTI NES NSD NSD
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