In a significant development, the Enforcement Directorate (ED) has arrested two directors of the Prayag Group, a West Bengal-based company, in connection with a massive multi-crore chit fund scam. The arrested individuals have been identified as Basudeb Bagchi and Abhik Bagchi.
The Prayag Group, which has been operating across several states including West Bengal, Odisha, Tripura, and Assam, has been under investigation by both the ED and Central Bureau of Investigation (CBI) for its involvement in illegal financial activities. The company is accused of running multi-level marketing schemes, promising high returns to investors, only to later dupe them by failing to deliver on the promised returns.
The arrests came after a series of raids and search operations conducted by the ED in Kolkata, targeting locations linked to the accused, including the residences of both directors. The investigation has revealed that Prayag Group used illicit methods, including hawala routes, to transfer and park funds illegally. The directors are also charged with money laundering and misappropriation of funds.
The Prayag Group allegedly amassed a staggering amount of Rs2,000 crore by convincing people to invest in various schemes marketed as part of multi-level marketing opportunities. They lured investors with promises of high returns, only to later inform them that their investments were “stuck” and could not be refunded. Many investors in West Bengal, Odisha, and other neighboring states have claimed they were swindled by the company.
This is not the first time the Bagchi brothers have faced legal action in connection with the company’s operations. The directors were previously arrested by the CBI in a similar case registered against them in Odisha.
The investigation also reveals that Basudeb and Abhik Bagchi were closely associated with Partha Chatterjee, the former West Bengal Education Minister and Trinamool Congress Secretary-General, who is currently in judicial custody for his alleged involvement in the cash-for-school jobs scam. This connection adds a layer of complexity to the case, as the Bagchi brothers were believed to have close ties with influential political figures in the state.
The ED has emphasized that it will continue its investigations into the Prayag Group’s operations, and further arrests are possible as more details emerge. The agency is also working to track down the funds that were allegedly funneled through illegal routes.
West Bengal has a long history of chit fund scams, with the Sanchaita Ponzi scam in the 1980s being one of the earliest and most notorious cases. The Prayag Group scam appears to be another chapter in this ongoing issue of fraudulent financial schemes that have left many victims in financial ruin.
