Chit Fund Scandal: Kolkata Father-Son Duo Arrested

The Enforcement Directorate has arrested Basudeb Bagchi and his son, Avik Bagchi, in connection with a Rs 2,800 crore chit fund scam. Operating without necessary authorizations, the Prayag Group defrauded investors through false high-return schemes, leaving Rs 1,900 crore unpaid. Multiple raids have been conducted to trace assets.

The Enforcement Directorate (ED) has arrested Basudeb Bagchi and his son, Avik Bagchi, in Kolkata, linked to an alleged Rs 2,800 crore chit fund scam. The arrest follows a series of raids aimed at uncovering a large-scale fraud operated by the Prayag Group of companies.

According to authorities, the Bagchi duo defrauded the public by soliciting significant deposits through misleading high-return schemes, notably monthly income schemes, redeemable preference shares, and club membership certificates. They are accused of leaving Rs 1,900 crore unpaid to investors across India.

The ED claims the Prayag Group operated without necessary authorizations from regulatory bodies such as the Reserve Bank of India and the Securities and Exchange Board of India, affecting lakhs of investors. Efforts are underway to recover illicitly acquired assets to provide restitution to the victims.

(With inputs from agencies.)