Chit Fund Scam: CBI Arrests Prayag Group’s Owner, Son

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Kolkata: Two honchos of Prayag group, Basudeb Bagchi who is the Chief Managing Director and son Avik Bagchi have been arrested by CBI over illegal chit fund scam worth crores.

The arrest came after they were summoned in Salt Lake’s CGO complex for interrogation.

Avik Bagchi is one of the directors in the group that collected money from people violating the SEBI rules

Both Basudeb and Avik Bagchi were charged under the sections of Prize Chit and Money Circulation (Banning) act, cheating, misappropriation of funds and criminal conspiracy.
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Prayag Group is one of the old groups that started the ponzi scheme in the eastern region. Like the Sarada scheme, their businesses were extended over several eastern and north eastern states including Bihar, Orissa, Assam and Tripura.

In September, 2016, the CBI raided different locations of Prayag group of companies in the city and suburban areas. The investigators interrogated the company officials in many occasions. On Wednesday, they were asked to clarify their statements.

Thee Prayag Group owns a film city in West Midnapore district spread over around 400 acres of land. Even though the film city was lying unused for several years, it started functioning a couple of years back.

The group also ran a daily newspaper which came under scanner for its unlawful activities.