Kolkata, Dec 22 (IANS) The Enforcement Directorate (ED) has attached immovable properties having a total value of Rs 110 crore in a case of money laundering against Prayag Group of Companies and its directors, said the central investigation agency in a statement on Monday.
These properties comprise 450.42 acres of land along with superstructures in the name of Prayag Group companies valued at approximately Rs 104 crore, located across West Bengal, Bihar and Assam, and immovable properties worth Rs 6 crore in the name of directors, namely Basudeb Bagchi, Avik Bagchi and Swapna Bagchi, the agency said in a statement.
Kolkata zonal office attached these properties under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, following the Provisional Attachment Order dated December 15.
The ED initiated an investigation based on the FIR and charge sheet filed by the Central Bureau of Investigation (CBI) under Sections of IPC 1860 and the Prize Chits & Money Circulation Schemes (Banning) Act, 1978.
The said FIR pertains to large-scale illegal deposit mobilisation by Prayag Group through unauthorised deposit schemes.
ED investigation revealed that Prayag Group, mainly through its companies Prayag Infotech Hi-Rise Ltd. and Prayag Infotech Network Pyt. Ltd., fraudulently collected a total amount of Rs 2,863 Crore from 38,71,674 depositors by offering high returns through illegal deposit and
money circulation schemes without any approval from the RBI or SEBI. As of 31.03.2016. depositors’ dues to the tune of Rs 1,906 Crore (excluding interest) remain unpaid.
ED investigation further revealed that the collected funds were not used for any legitimate business activities.
Instead, the group operated a Ponzi-type scheme, wherein money from new investors was used to repay earlier investors, while a substantial portion of the funds was diverted for acquiring land, hotels, film city projects, takeover of companies, common pay-outs to agents, advertisements, celebrity promotions, and personal enrichment of the promoters and their family members.
–IANS
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