Kolkata chit fund scam: Enforcement Directorate arrests father-son duo in ₹2,800-crore case

“A special PMLA court sent Basudeb Bagchi and his son Avik Bagchi, promoters of Prayag Group of companies, to ten days of ED custody,” the ED said

The Enforcement Directorate (ED) on Friday (November 29, 2024) said it has arrested a father-son duo in Kolkata in an alleged ₹2,800 crore worth chit fund scam linked money-laundering case.

“A special Prevention of Money Laundering Act (PMLA) court sent Basudeb Bagchi and his son Avik Bagchi, promoters of Prayag Group of companies, to ten days of ED custody,” the ED said in a statement.

The premises of the two and some others in Kolkata and Mumbai were raided by the ED on November 26. The two are accused of "defrauding" the public by collecting deposits worth ₹2,800 crore under "false" high-return schemes such as monthly income schemes (MIS), redeemable preference shares and club membership certificates. As of now, the ED said ₹1,900 crore remains "unpaid" to investors.

The Prayag Group of companies operated "illegally" without necessary authorisations from regulatory bodies such as the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), affecting lakhs of investors across multiple States.

The agency said funds collected from the investors were "layered" by the promoters by incorporating multiple entities which were subsequently used for buying various properties.

"The ED will 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," it said.

Published - November 29, 2024 03:04 pm IST