Enforcement Directorate attaches Rs 110 crore worth of properties in money laundering case

The Enforcement Directorate (ED) has attached immovable properties worth Rs 110 crore in a money laundering case involving Prayag Group of Companies and its directors. The properties include 450.42 acres of land and superstructures valued at around Rs 104 crore, spread across West Bengal, Bihar, and Assam. Additionally, immovable properties worth Rs 6 crore in the names of directors Basudeb Bagchi, Avik Bagchi, and Swapna Bagchi have been attached by the Kolkata zonal office under the Prevention of Money Laundering Act (PMLA), 2002.
The ED’s investigation was initiated based on a FIR and charge sheet filed by the Central Bureau of Investigation (CBI) under relevant sections of the IPC and the Prize Chits & Money Circulation Schemes (Banning) Act, 1978. The case relates to the illegal deposit mobilization by Prayag Group through unauthorized schemes.
It was discovered that Prayag Group, particularly through its companies Prayag Infotech Hi-Rise Ltd. and Prayag Infotech Network Pyt. Ltd., collected a total of Rs 2,863 Crore from 38,71,674 depositors through illegal deposit and money circulation schemes without regulatory approvals. As of March 31, 2016, depositors’ dues amount to Rs 1,906 Crore (excluding interest) that remain unpaid.
Further investigations revealed that the funds collected were not utilized for legitimate business activities. Instead, the group operated a Ponzi-type scheme, using new investors’ money to repay earlier investors. A significant portion of the funds was diverted for various purposes such as acquiring land, hotels, film city projects, company takeovers, agent payouts, advertisements, celebrity promotions, and personal enrichment of the promoters and their families.