The Enforcement Directorate (ED) has arrested the promoters of M/s Prayag Group of Companies, Basudeb Bagchi and his son Avik Bagchi, in connection with a money laundering case related to a major chit fund scam. The father-son duo is accused of defrauding the public by collecting deposits totaling Rs2,800 crore through false high-return investment schemes.
The schemes offered by the Prayag Group included Monthly Income Schemes (MIS), Redeemable Preference Shares, and Club Membership Certificates. The investors were lured with promises of guaranteed returns but were ultimately deceived. To date, around Rs1,900 crore remains unpaid to the investors, according to authorities.
The Enforcement Directorate’s action follows an extensive investigation into the group’s financial activities, which revealed that the funds collected from the public were used for personal and fraudulent purposes, rather than for legitimate investments. As part of their probe, the ED has seized assets linked to the accused.
The arrests of Basudeb Bagchi and Avik Bagchi mark a significant development in the investigation, and authorities are continuing to unravel the full extent of the fraud. The ED has indicated that further action will be taken to identify and prosecute other individuals involved in this massive scam.
This case underscores the rising prevalence of chit fund scams and highlights the importance of regulatory vigilance to protect investors from fraudulent schemes that promise unrealistic returns.
