Charge sheet against Prayag Group CMD, MD in Odisha court

Bhubaneswar: The Central Bureau of Investigation (CBI) today filed charge sheet against to top executives of a West Bengal-based firm at a designated court in Odisha capital for their alleged complicity in raising money from gullible investors.

The investigators filed charge sheet against Basudeb Bagchi and Avik Bagchi – the then CMD and the then MD respectively of Prayag Group of Companies in the Court of Special CJM here as part of the multi-crore chit fund scam in the state.

The charge sheet was filed under section 120 (B) r/w 409 and 420 of IPC and under section 4, 5 and 6 of Prize Chits and Money Circulation Schemes (Banning) Act, 1978.

It was alleged that the accused persons had fraudulently induced investors to invest money by promising very high returns and also by advertising false and fabricated business prospects of the company and thereafter cheated investors and misappropriated the same. It was further alleged that the company has illegally collected huge funds from poor investors. The total collection by the said Group of Companies was allegedly to the tune of Rs.2862 crore.

On the direction of Supreme Court, CBI had registered a case against the duo in June 2014. However, they were arrested in March this year.

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