Prayag Group Ponzi Scheme: ED Seizes Over 450 Acres of Land Worth ₹110 Crore
Moneylife Digital Team 22 December 2025
The Kolkata zonal office of the directorate of enforcement (ED) has provisionally attached immovable properties worth ₹110 crore belonging to the Prayag group of companies and its directors in connection with a money laundering case linked to large-scale illegal deposit mobilisation from millions of investors. The attached assets include more than 450 acres of land and other immovable properties spread across West Bengal, Bihar and Assam. 
 
The case relates to unauthorised deposit schemes allegedly floated by the Prayag group without approvals from Reserve Bank of India (RBI) or Securities and Exchange Board of India (SEBI).
 
According to ED, its investigation revealed that Prayag group, primarily through its companies Prayag Infotech Hi-Rise Ltd and Prayag Infotech Network Pvt Ltd, fraudulently collected ₹2,863 crore from 3.87mn (million) depositors by promising high returns through illegal deposit and money circulation schemes. As of 31 March 2016, unpaid dues to depositors stood at ₹1,906 crore, excluding interest.
 
In a statement, ED says it had issued a provisional attachment order on 15 December 2025 under the provisions of the Prevention of Money Laundering Act, 2002 against Prayag group and its promoters. 
 
The money laundering probe was initiated based on a first information report (FIR) and charge-sheet filed by central bureau of investigation (CBI) under provisions of the Indian Penal Code, 1860 and the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. The case relates to unauthorised deposit schemes allegedly floated by the Prayag group without approvals from Reserve Bank of India (RBI) or Securities and Exchange Board of India (SEBI).
 
The agency says the collected funds were not deployed in any genuine business activities. Instead, the group allegedly operated a Ponzi-type arrangement, using money collected from new investors to pay earlier investors. A substantial portion of the funds was diverted towards acquisition of land, hotels, film city projects, takeover of companies, commission payments to agents, advertisements, celebrity endorsements and personal enrichment of the promoters and their family members.
 
ED further says its investigation established that the group’s promoters and directors, including Basudeb Bagchi, Avik Bagchi and Swapna Bagchi, personally benefited from the proceeds of crime. The promoters allegedly withdrew funds in the guise of remuneration, acquired immovable properties in their personal names, allotted shares to themselves without consideration and routed funds through related entities.
 
As part of the provisional attachment, ED has attached immovable properties valued at around ₹104 crore in the name of Prayag group companies, comprising 450.42 acres of land along with superstructures, located across multiple states. In addition, immovable properties worth ₹6 crore in the personal names of the directors have also been attached.
 
The agency says a prosecution complaint has already been filed before the designated special court under the PMLA. Basudeb Bagchi and Avik Bagchi are currently under judicial custody, while further investigation in the case is ongoing.
 
Comments
Free Helpline
Legal Credit
Feedback