HC denies bail to Prayag directors for Rs 2,862-cr fraud
Times of India | 16 January 2026
Kolkata: Calcutta High Court on Thursday refused bail to the principal directors of Prayag Group, Basudeb Bagchi and Avik Bagchi, in custody for allegedly defrauding thousands of investors of nearly Rs 2,862 crore.
"The liberty of an individual cannot be viewed in isolation from the collective interests of thousands of defrauded investors," a division bench held.
"While sensitive to Article 21, we note that the petitioners' status as ‘proclaimed offenders' deals a decisive blow to their prayer. An accused who ignores judicial warrants disentitles themselves to equitable consideration. By systematically evading non-bailable warrants, they demonstrated a clear propensity to circumvent the legal process," the bench observed.
Basudeb is 68 years old. The bench held that while the court has discretion to release an elderly or infirm person, it is not an automatic mandate. "Given the flight risk, the petitioner's health can be adequately managed through comprehensive medical supervision within the custodial framework," it said.
The duo approached the division bench of Justices Rajarshi Bharadwaj and Uday Kumar for regular bail. They are in custody for eight months in connection with an ED case under the Prevention of Money Laundering Act (PMLA).
ED alleged that the duo defrauded thousands of investors of approximately Rs 2,862 crore through a deceptive veneer of "Time Share", real estate and gold-based investment schemes. While the duo claimed partial restitution of Rs 1,140 crore, ED identified an untraced deficit of Rs 1,906 crore, alleging these were "proceeds of crime" layered through shell entities.
The present prosecution focuses on the allegation that the duo generated fresh proceeds post-2016, even while a prior investigation was active.