Why Did the ED Attach Properties of Prayag Group in a Money Laundering Case?
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Synopsis
The Enforcement Directorate (ED) has taken significant action by attaching properties worth Rs 110 crore linked to Prayag Group in a major money laundering case. This crackdown raises critical questions about financial integrity and regulatory oversight in the corporate sector.
Key Takeaways
- ED action: Properties worth Rs 110 crore attached.
- Investigation basis: Initiated from CBI's FIR.
- Illegal deposits: Rs 2,863 crore raised from depositors.
- Business misuse: Funds diverted for Ponzi schemes.
- Directors involved: Basudeb Bagchi, Avik Bagchi, Swapna Bagchi.
Kolkata, Dec 22 (NationPress) The Enforcement Directorate (ED) has seized immovable assets worth a staggering Rs 110 crore in connection with a money laundering investigation involving the Prayag Group of Companies and its directors, as stated by the central investigation agency on Monday.
The seized assets include 450.42 acres of land and associated structures owned by Prayag Group companies, valued at around Rs 104 crore, spread across West Bengal, Bihar, and Assam. Additionally, properties worth Rs 6 crore belonging to directors Basudeb Bagchi, Avik Bagchi, and Swapna Bagchi have also been attached, according to the agency's statement.
The Kolkata zonal office executed the property attachment under the Prevention of Money Laundering Act (PMLA), 2002, following a Provisional Attachment Order issued on December 15.
The ED's investigation was initiated based on the FIR and charge sheet filed by the Central Bureau of Investigation (CBI), citing violations of sections of the IPC 1860 and the Prize Chits & Money Circulation Schemes (Banning) Act, 1978.
The FIR addresses extensive illegal deposit mobilization conducted by the Prayag Group through unauthorized deposit schemes.
According to findings from the ED, the Prayag Group, primarily through its subsidiaries Prayag Infotech Hi-Rise Ltd. and Prayag Infotech Network Pyt. Ltd., illicitly raised Rs 2,863 crore from 38,71,674 depositors by promising high returns via illegal deposit and money circulation schemes without any clearance from the RBI or SEBI. As of March 31, 2016, the dues owed to depositors, excluding interest, amounted to Rs 1,906 crore.
Further investigation revealed that the funds collected were not allocated for legitimate business purposes. Instead, the group operated a Ponzi-like scheme where funds from new investors were used to pay off earlier investors while a significant portion was diverted towards acquiring land, hotels, film city projects, acquiring companies, agent commissions, promotional advertisements, celebrity endorsements, and the personal enrichment of the promoters and their families.
Point of View
I believe that the actions taken by the ED reflect a necessary stance against financial malpractice in India. It is crucial for regulatory bodies to ensure that companies adhere to ethical practices, and the Prayag Group case serves as a stark reminder of the vigilance required to protect investors and uphold financial integrity.
NationPress
22/12/2025
Frequently Asked Questions
What is the amount involved in the ED's action against Prayag Group?
The Enforcement Directorate has attached properties valued at Rs 110 crore in connection with the money laundering investigation against Prayag Group.
What laws did the ED invoke for this action?
The ED attached the properties under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
How much money did Prayag Group raise illegally?
Prayag Group reportedly collected Rs 2,863 crore from over 38 lakh depositors through unauthorized deposit schemes.
What were the funds used for?
The funds collected were not used for legitimate business activities but were instead diverted for personal enrichment and other fraudulent schemes.
Who are the directors of Prayag Group involved in this case?
The directors involved are Basudeb Bagchi, Avik Bagchi, and Swapna Bagchi.
