The Directorate of Enforcement (ED), Kolkata Zonal Office, has issued a Provisional Attachment Order (PAO) dated December 15, 2025, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in a major money laundering case involving the Prayag Group of Companies and its directors.
The attachment action follows an investigation initiated by the ED on the basis of a First Information Report (FIR) and charge sheet filed by the Central Bureau of Investigation (CBI) under various sections of the Indian Penal Code, 1860, and the Prize Chits & Money Circulation Schemes (Banning) Act, 1978. The FIR pertains to allegations of large-scale illegal mobilisation of public deposits by the Prayag Group through unauthorised deposit and money circulation schemes.
₹2,863 Crore Collected Through Illegal Schemes
According to the ED, the investigation revealed that the Prayag Group, primarily through its companies Prayag Infotech Hi-Rise Ltd. and Prayag Infotech Network Pvt. Ltd., fraudulently collected a total amount of ₹2,863 crore from 38,71,674 depositors by promising high and assured returns. The schemes were operated without any approval or regulatory clearance from the Reserve Bank of India (RBI) or the Securities and Exchange Board of India (SEBI).
The agency stated that, as on March 31, 2016, depositors’ dues amounting to ₹1,906 crore (excluding interest) remained unpaid, causing substantial financial loss to lakhs of investors across multiple states.
Ponzi-Type Operation Uncovered
ED officials said the investigation established that the funds collected from depositors were not utilised for any genuine business activity. Instead, the Prayag Group was operating a Ponzi-type scheme, wherein money mobilised from new investors was used to repay earlier investors, thereby creating an illusion of legitimacy and sustainability.
A significant portion of the funds, the ED found, was diverted and siphoned off for purposes unrelated to the stated business objectives of the group. These included:
- Acquisition of large tracts of land
- Investment in hotels and hospitality projects
- Development of film city ventures
- Takeover of companies
- Payment of commissions to agents
- Heavy spending on advertisements and celebrity endorsements
- Personal enrichment of promoters and their family members
Promoters Personally Benefitted from Proceeds of Crime
The ED investigation further established that Basudeb Bagchi, Avik Bagchi and Swapna Bagchi, the directors and promoters of the Prayag Group, personally benefitted from the Proceeds of Crime generated through the illegal deposit schemes.
According to the agency, the promoters withdrew substantial funds in the guise of salary and remuneration, acquired immovable properties in their personal names, and allotted shares to themselves without consideration. Funds were also routed to related and connected entities, enabling layering and concealment of illicit proceeds.
₹110 Crore Worth of Properties Attached
Based on the findings of the investigation, the ED has provisionally attached immovable properties worth ₹110 crore. The attached assets include:
- 450.42 acres of land along with superstructures, valued at approximately ₹104 crore, held in the names of Prayag Group companies and located across West Bengal, Bihar and Assam
- Immovable properties worth ₹6 crore held in the personal names of directors Basudeb Bagchi, Avik Bagchi and Swapna Bagchi
The agency stated that the attachment has been carried out to prevent the accused from alienating or disposing of the tainted assets during the pendency of investigation and trial.
Prosecution Complaint Filed; Key Accused in Custody
The ED has already filed a Prosecution Complaint in the case before the Special Court designated under the PMLA. The agency confirmed that Basudeb Bagchi and Avik Bagchi are currently under judicial custody in connection with the case.
Legal proceedings are underway, and the attached properties are subject to confirmation by the adjudicating authority under the PMLA.
Further Investigation Underway
The Enforcement Directorate stated that the investigation is ongoing, with a focus on tracing the remaining proceeds of crime, identifying additional assets acquired using illicit funds, and examining the role of other individuals and entities linked to the Prayag Group.
Officials indicated that further attachments, supplementary prosecution complaints and additional legal action may follow as the probe progresses.
Case Highlights Investor Risks in Illegal Deposit Schemes
Legal experts said the case underscores the serious risks posed by unauthorised deposit and money circulation schemes, which often operate outside the regulatory framework and collapse once fresh inflows dry up. Enforcement agencies have reiterated the need for investors to verify whether financial schemes are approved by RBI or SEBI before investing.
The ED has maintained that strict enforcement under the PMLA is essential to protect public money, deter financial fraud, and ensure accountability of economic offenders.
