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ED arrests 2 Prayag Group promoters in Rs 2,800-crore chit fund ‘scam’

The father-son duo is accused of defrauding the public by collecting deposits worth Rs. 2,800 Crore under false high-return schemes.

chit fund scamThe Prayag Group of Companies allegedly 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)

The Enforcement Directorate (ED) has arrested the promoters of M/s Prayag Group of Companies, Basudeb Bagchi and Avik Bagchi, in connection with a money laundering case related to a chit fund scam.

The father-son duo is accused of defrauding the public by collecting deposits worth Rs. 2,800 Crore under false high-return schemes, such as Monthly Income Schemes (MIS), Redeemable Preference Shares, and Club Membership Certificates. As of now, Rs 1,900 crore remains unpaid to investors, officers said.

The Prayag Group of Companies allegedly 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. Earlier searches were conducted on 26.11.2024 at multiple locations in Kolkata and Mumbai, resulting in the seizure of incriminating records and evidence.

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