Kolkata, Nov 30 (UNI) The Enforcement Directorate (ED) has arrested two promoters of M/s Prayag Group of Companies, Basudeb Bagchi and Avik Bagchi in connection with the alleged money laundering case related to a chit fund scam.
The father-son duo has been accused of defrauding the public by collecting deposits worth Rs. 2,800 crore under false high-return schemes, such as Monthly Income Schemes (MIS), Redeemable Preference Shares, and Club Membership Certificates.
"As of now, Rs. 1,900 crore remain unpaid to investors," the ED said in a release on Friday.
The Prayag Group of Companies allegedly operated illegally without necessary authorizations from regulatory bodies like the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), affecting lakhs of investors across multiple states, the ED claimed.
Earlier, searches were conducted on November 26, 2024, at multiple locations in Kolkata and Mumbai, resulting in the seizure of incriminating records and evidence. The funds collected from the investors were layered by the promoters by incorporating multiple entities and which were subsequently used for buying various properties, the federal agency said.
The Special CBI Court, Kolkata, meanwhile granted 10 days custody of both the accused to the ED after the duo was produced before the court of law in the city.

The ED said it will further interrogate the accused to uncover the properties acquired using the defrauded funds. " This action is part of the ED's efforts to trace and recover assets linked to the scam aiming for restitution of the money to rightful investors and victims," the release added.
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