ED arrests West Bengal-based businessmen for alleged links to Ponzi scheme

ED officials accused the Prayag Group promoters of being involved in duping investors of nearly ₹2,000 crore by luring them with investment opportunities and falsely promising handsome returns

The Enforcement Directorate on Wednesday (November 27, 2024) arrested a father-son duo at the helm of a Calcutta-based real estate and hospitality business, Prayag Group, allegedly in connection with a multi-crore Ponzi scheme.

Also Read: Ponzi scam cases: CBI conducts searches at two locations in Kolkata

Prayag Group chairperson Basudeb Bagchi and his son and top company executive Avik Bagchi were arrested by the ED on Wednesday. While the former was picked up from his residence in South Kolkata’s posh Alipore area, the latter was arrested in New Delhi. 

This arrest follows several searches by the ED the previous day in multiple locations of the city, particularly in properties associated with the Prayag Group. According to ED officials, searches were conducted in spots like the New Alipore residence of a top company executive, and a guesthouse in Joka, on the outskirts of the city. 

ED officials accused the Prayag Group promoters of being involved in duping investors of nearly ₹2,000 crore by luring them with investment opportunities and falsely promising handsome returns. Investors allegedly were deprived of their promised returns as funds raised in this manner would be parked outside through the hawala route.

Earlier, in 2017, the father-son duo was quizzed and arrested by the Central Bureau of Investigation over a similar case registered in Odisha. The investigating agency had then alleged that the Prayag Group had accumulated nearly ₹3,000 crore in public deposits. 

In 2013, the Mamata Banerjee government had announced that it would take stringent action against deposit-taking companies, shortly after reports came to the fore of the Prayag Group allegedly encroaching on at least 360 acres of government land for the Prayag Film City project in West Midnapore district. 

Published - November 28, 2024 01:00 am IST