Prayag Group Directors arrested in ₹1,900 crore chit fund fraud

The Enforcement Directorate (ED) has arrested Vasudev Bagchi and Abhik Bagchi, directors of Prayag Group, in a ₹1,900 crore chit fund scam. The arrests followed simultaneous raids at multiple locations, including their residences in New Alipore, Kolkata, on Tuesday. Both directors are accused of collecting large sums from investors through unregistered schemes that promised high returns.

Prayag Group reportedly raised funds from thousands of investors across West Bengal, Odisha, Assam, and Tripura. The company allegedly operated several unauthorized investment schemes, targeting small and medium depositors. Investigators believe the funds were diverted to various accounts and entities, prompting an inquiry into potential money laundering and asset misappropriation.

Official records show that the Prayag Group was under investigation since 2017 when a case was registered in Odisha. The directors were previously arrested in connection with the scam but were later released on bail. The fresh arrests come as part of an ongoing investigation into financial irregularities and fraudulent practices. The ED is focused on tracing assets acquired using investors’ money and determining the extent of fund mismanagement.

Authorities are also examining potential connections with individuals and entities that may have benefited from the fraud. The investigation aims to uncover whether the defrauded funds were transferred to third parties or moved out of the country. The directors are expected to be presented in court for further legal proceedings.