The Central Bureau of Investigation on Wednesday arrested a father-son duo in connection with the chit fund case. Basudev Bagchi, former CMD of a chit-fund company — Prayag Group of Companies — in Kolkata, and his son and MD Avik Bagchi were booked under sections 120 B (criminal conspiracy), 420 (cheating) and 34 (acts done by several persons in furtherance of common intention) of IPC and sections 4, 5, and 6 of Prize Chit and Money Circulation (Banning) Act, said an official.
As per reports, the duo had cheated Rs 2,862 crore. They collected money from the investors by alluring them with Ponzi schemes and by promising them high returns. However, they never paid their investors back. The alleged cheaters are to be in Bidhannagar court on Thursday before the Additional Chief Judicial Magistrate.
The CBI has been investigating their matter since 2014 when a case was lodged against the duo. In September last year, the investigating agency had raided different offices of the Prayag Group in the city and adjoining suburban areas as part of its investigation into the case.