CBI files charge sheet against two ponzi companies

The charges have also been filed against two other private persons based at Kolkata under various sections of the Indian Penal Code.

BHUBANESWAR: The CBI today filed a charge sheet against two West Bengal-based ponzi companies which allegedly collected about Rs 2,862 crore from the public by giving misleading information.

The charge sheet was filed against Basudeb Bagchi, the then CMD and Avik Bagchi, then then MD of Prayag Infotech Hi-Rise Limited and Prayag Infotech Network Private Limited, at the court of special chief judicial magistrate, Bhubaneswar.

The charges have also been filed against two other private persons based at Kolkata under various sections of the Indian Penal Code.

The charge sheet alleged that the CMD and the MD of the companies fraudulently induced investors to invest money by promising very high returns and also by advertising false and fabricated business prospects of the firms and, thereafter cheated the investors. It was alleged that the companies had illegally collected huge funds from poor investors.

The total collection by the said group of companies was allegedly to the tune of Rs 2,862 crore, a CBI statement said.

The agency had registered the case on June 5, 2014 on the orders of the Supreme Court.

The CBI had arrested then CMD and then MD, both of the West Bengal-based group of companies, on March 15 this year in an ongoing investigation of a chit fund case. At present, both are in judicial custody, it said.

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