Chargesheet on Prayag Group owners

Kolkata: The Central Bureau of Investigation (CBI) on Tuesday chargesheeted Kolkata-based chit fund firm Prayag Group owners Basudeb Bagchi and his son Aveek Bagchi in a Rs 2,862 crore fraud case. 

While Mr Bagchi was the chairman and managing director, Mr Avik Bagchi was the managing director of the parent company and its two subsidiaries, Prayag Infotech Hi-Rise Ltd and Prayag Infotech Network Ltd. 

The CBI found that Prayag Group collected around Rs 2,862 crore by alluring the poor investors from the rural parts of the state with lucrative returns. Both the accused were booked under Sections 120-B, 409 and 420 of the Indian Penal Code and under Sections 4, 5 and 6 of Prize Chits and Money Circulation Schemes (Banning) Act. 

CBI spokesperson R.K. Gaur said the chargesheet was filed before special chief judicial magistrate at the Bhubaneswar court. The CBI arrested Basudeb Bagchi and his son on March 15. At present, the father-son duo are lodged in the judicial custody.

The CBI said the accused fraudulently induced the investors to deposit their money “by promising very high returns and advertising false and fabricated business prospects”, and hence cheated the investors.

Prayag Group also set up a film city on around 2,700 acres at Chandrakona in West Midnapore. The chit fund firm hogged into limelight in April 2012 when actor Shah Rukh Khan inaugurated the project called as Prayag Film City.