ED raids multiple Kolkata locations in Prayag Group chit fund probe, targets owners and offices

The Enforcement Directorate (ED) on Tuesday carried out a series of raids at multiple locations in Kolkata, as part of its ongoing investigation into the Prayag Group’s involvement in a large-scale chit fund scam. Four locations were raided, including two residences of the group's key officials in New Alipore and Joka, both in South Kolkata. In addition to the properties in Kolkata, ED teams also conducted searches at offices of the Prayag Group in a neighboring state. The raids are focused on gathering evidence related to money laundering and illegal financial activities operated by the group.

The Prayag Group has been under investigation for collecting illegal deposits from the public through various multi-level marketing (MLM) schemes, promising high returns that were never paid out. The group is also accused of using hawala channels to launder the money, making it difficult for authorities to trace the funds. The total amount allegedly raised by the Prayag Group is estimated to be over Rs 1,900 crore. Investors from several eastern and northeastern states are believed to have been duped in this scheme.

The Enforcement Directorate’s investigation into the group follows the earlier involvement of the Central Bureau of Investigation (CBI), which arrested the company's two key owners, Basudeb Bagchi and his son Avik Bagchi, in 2017. The CBI had charged the group with illegal financial practices and money laundering. Despite their arrests, however, the ED has uncovered evidence suggesting that the Prayag Group continued operating its illegal activities under different guises, prompting the latest raids.

Sources have indicated that the ED is now focusing on collecting further evidence, including documents seized during the raids. These documents are expected to shed light on the operational methods of the Prayag Group and could help identify connections to influential figures in both West Bengal and neighboring states. Investigators are particularly interested in uncovering how the group managed to continue its operations after the arrests and identifying any political, business, or financial connections that may have facilitated the scheme's persistence.

In addition to the search teams, personnel from the Central Armed Police Forces (CAPF) have been deployed to ensure security during the raids. The ED’s investigation is part of its broader effort to clamp down on financial frauds and illegal operations in the state of West Bengal, which has seen a number of high-profile chit fund scandals in recent years, including the infamous Saradha and Rose Valley scams. The Prayag Group’s case is part of the ED’s continued focus on tackling illicit financial activities in the region, which has become notorious for such scams.