Introduction to the Controversy

On July 30, 2025, renowned South Indian actor Prakash Raj appeared before the Enforcement Directorate (ED) in Hyderabad for questioning in a money laundering investigation tied to illegal online betting platforms. The case, which has stirred significant attention, also involves other prominent actors like Rana Daggubati, Vijay Deverakonda, and Lakshmi Manchu. Raj’s appearance has sparked discussions, with many speculating about the intentions behind the probe. However, the actor has firmly dismissed claims of political targeting, emphasizing transparency and cooperation.

Background of the Investigation

The ED’s probe centers on allegations that several celebrities endorsed online betting apps, such as Junglee Rummy, JeetWin, and Lotus365, which are suspected of generating illicit funds. The investigation stems from multiple First Information Reports (FIRs) filed by state police, including one by the Cyberabad Police in March 2025, accusing 29 celebrities and influencers of promoting these platforms. The ED is examining whether these endorsements facilitated money laundering, with financial trails and endorsement contracts under scrutiny. Raj, known for his roles in Telugu, Kannada, and Tamil cinema, was summoned due to his association with Junglee Rummy in 2016.

Prakash Raj’s Clarification

Speaking to the media after a four-hour questioning session, Prakash Raj clarified that his involvement with the betting app was brief and ended nearly a decade ago. “This was something I did in 2016, and on moral grounds, I chose not to pursue it further. I did not receive any payment for the endorsement,” he stated. Raj emphasized that he fully cooperated with the ED, providing all relevant details to aid the investigation. He also addressed speculations of a political agenda, saying, “The officers are doing their job, and as a citizen, I’m obligated to cooperate. There is no witch-hunt or political motivation here.” His candid response has been seen as an effort to set the record straight and dispel rumors of targeted persecution.

Other Celebrities Under Scrutiny

Raj is not alone in facing the ED’s scrutiny. Actors Rana Daggubati, Vijay Deverakonda, and Lakshmi Manchu have also been summoned for questioning on different dates in July and August 2025. The ED’s investigation, conducted under the Prevention of Money Laundering Act (PMLA), aims to uncover the extent of financial transactions linked to these platforms. While some celebrities have claimed they were unaware of the apps’ illegal operations, the agency is focused on tracing the flow of funds, which reportedly amount to crores of rupees.

Implications and Public Reaction

The case has sent ripples through the Telugu film industry, raising questions about the ethics of celebrity endorsements. Raj’s decision to step away from the betting app endorsement in 2016 has been praised by some as a principled stand, while others await further developments in the investigation. The public’s response is mixed, with some supporting Raj’s transparency and others questioning the broader implications of such endorsements. As the ED continues its probe, the case underscores the need for stricter regulations in celebrity-driven promotions.

Conclusion

Prakash Raj’s appearance before the ED and his subsequent clarification highlight his commitment to accountability. By dismissing notions of political targeting, he has sought to focus on the facts of the case. As the investigation unfolds, it serves as a reminder of the responsibilities celebrities hold in their endorsements and the importance of ethical decision-making in the public eye.

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