CBI arrests CMD & Director of Prayag Group in chit fund case

KOLKATA: The Central Bureau of Investigation (CBI) has arrested Basudeb Bagchi, CMD of Prayag Group of companies, and his son Avik Bagchi in connection with the chit fund scam. Avik Bagchi is one of the directors in the group that collected money from people violating the SEBI rules. The father and son duo were summoned to the CBI head quarter in Kolkata today. after a marathon interrogation, both were arrested.

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. Prayag Group is one of the old groups that started the ponzi scheme in the eastern region. The businesses were spread 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.

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. Bengali films of renowned producers were shot in the film city of late.