Kolkata: ED arrests two promoters of Prayag group in chit fund scam

Kolkata: The Directorate of Enforcement (ED) arrested the promoters of Prayag Group, a father-son duo, Basudeb Bagchi and Avi Bagchi in connection with a alleged money laundering case, the agency confirmed on Friday. The special CBI court granted 10 days custody of both the accused. According to ED, the duo are alleged to be involved in a chit fund scam, and is accused to defrauding the public by collecting deposits worth Rs 2,800 crore under false promises. "The father-son duo is 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," said a statement by ED. The Agency has also said that around Rs 1,900 remain unpaid by the duo to investors. "The Prayag Group of Companies 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," read the statement by ED. The Kolkata Zonal office of the agency conducted searches on Tuesday at multiple locations in Mumbai and Kolkata. The statement read, "The ED 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." (with Agency inputs)