Kolkata, 22 December (H.S.) :

The Enforcement Directorate on Monday took major action in the money laundering case against the Prayag Group and its directors, provisionally attaching assets worth Rs 110 crore. The case is linked to alleged illegal financial transactions amounting to Rs 2,863 crore.

The ED initiated the probe on the basis of an FIR and charge sheet filed by the Central Bureau of Investigation under relevant sections of the Indian Penal Code and the Prize Chits and Money Circulation Schemes (Banning) Act. The allegations pertain to large-scale illegal mobilisation of public deposits through unauthorised schemes.

According to the investigation, the Prayag Group, primarily through Prayag Infotech Hi-Rise Limited and Prayag Infotech Network Private Limited, fraudulently collected Rs 2,863 crore from 38,71,674 depositors by promising high returns. These schemes were operated without approval from the Reserve Bank of India or the Securities and Exchange Board of India. As of March 31, 2016, dues worth around Rs 1,906 crore, excluding interest, remain unpaid to depositors.

The ED found that the collected funds were not used for any legitimate business activities. Instead, the group allegedly ran a Ponzi-style operation, where money from new investors was used to pay earlier investors. A significant portion of the funds was diverted towards purchasing land, hotels, film city projects, takeover of companies, commission payments to agents, advertisements, celebrity promotions, and for the personal enrichment of the promoters and their family members.

The investigation further revealed that Prayag Group directors and promoters Basudeb Bagchi, Avik Bagchi, and Swapna Bagchi personally benefited from the proceeds of crime. They allegedly withdrew funds in the name of remuneration, acquired immovable properties in their personal names, allotted shares to themselves without consideration, and routed funds through related entities.

As part of the action, the ED has provisionally attached immovable properties worth Rs 110 crore. These include 450.42 acres of land along with superstructures owned by Prayag Group companies, valued at approximately Rs 104 crore, located across West Bengal, Bihar, and Assam. Additionally, immovable properties worth about Rs 6 crore belonging to the three directors have also been attached.

The ED has already filed a prosecution complaint before the Special Court under the Prevention of Money Laundering Act. Basudeb Bagchi and Avik Bagchi are currently in judicial custody. Further investigation in the case is ongoing.

Hindusthan Samachar / Satya Prakash Singh