CBI arrests two in chit fund case in Kolkata

As per sources, the father-son duo had allegedly cheated investors of Rs 2,862 crore.

By: Express News Service | Kolkata | Published:March 16, 2017 4:38 am

THE CENTRAL Bureau of Investigation (CBI) on Wednesday arrested a father-son duo in a chit fund case.
Basudev Bagchi, former CMD of a chit-fund company — Prayag Group of Companies — in Kolkata, and his son and MD Avik Bagchi were booked under sections 120 B (criminal conspiracy), 420 (cheating) and 34 (acts done by several persons in furtherance of common intention) of IPC and sections 4,5,and 6 of Prize Chit and Money Circulation (Banning ) Act, said an official.

As per sources, the father-son duo had allegedly cheated investors of Rs 2,862 crore. They collected money from the investors by floating several Ponzi schemes and promised them high return. But, they never repaid the investors, the official said.

The accused will be produced in Bidhannagar court on Thursday before the Additional Chief Judicial Magistrate.
The CBI has been probing the case since 2014 and a case was registered against the duo in the same year.

In September last year, the investigating agency had raided different offices of the Prayag Group in the city and adjoining suburban areas as part of its investigation into the case.

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