The Calcutta High Court delivered a significant ruling on Thursday. It refused to grant bail to the principal directors of Prayag Group. The accused, Basudeb Bagchi and Avik Bagchi, remain in custody. They face serious allegations of defrauding thousands of investors. The estimated amount involved is nearly Rs 2,862 crore.
Court Cites Collective Interest of Investors
A division bench of Justices Rajarshi Bharadwaj and Uday Kumar heard the bail plea. The bench made a strong observation. It stated that individual liberty cannot be viewed in isolation. The collective interests of thousands of defrauded investors must be considered.
The bench was clear in its reasoning. "While we are sensitive to Article 21, we note a critical fact," the court said. "The petitioners' status as 'proclaimed offenders' deals a decisive blow to their prayer."
Evasion of Justice Weighs Heavily
The court elaborated on this point. It observed that an accused who ignores judicial warrants loses a key right. They disentitle themselves to equitable consideration from the court.
"By systematically evading non-bailable warrants, they demonstrated a clear propensity," the bench noted. "Their actions show a tendency to circumvent the legal process entirely."
Health and Age Arguments Rejected
Basudeb Bagchi is 68 years old. His counsel likely raised arguments concerning his age and health. The bench acknowledged the court's discretion to release an elderly or infirm person. However, it emphasized this is not an automatic mandate.
The judges addressed the concern directly. "Given the evident flight risk, the petitioner's health can be managed," the order stated. "Adequate medical supervision is possible within the custodial framework."
Details of the Alleged Fraud Scheme
The duo has been in custody for eight months. Their arrest is linked to an Enforcement Directorate (ED) case. The case is registered under the Prevention of Money Laundering Act (PMLA).
ED investigators presented a detailed allegation. They claim the directors defrauded thousands of investors. The estimated sum is approximately Rs 2,862 crore. The fraud was executed under a deceptive veneer.
The group promoted various investment schemes. These included "Time Share" arrangements, real estate projects, and gold-based investments. The ED alleges these were fronts for a large-scale financial fraud.
Untraced Funds and Fresh Allegations
The accused claimed partial restitution of funds. They stated about Rs 1,140 crore had been returned to investors. However, the ED's investigation identified a major deficit.
Officials claim an untraced amount of Rs 1,906 crore remains. The agency alleges these are "proceeds of crime." They believe the money was layered through a network of shell entities to hide its origin.
The current prosecution focuses on a specific period. It alleges the duo generated fresh proceeds of crime even after 2016. This activity reportedly continued while a prior investigation into their affairs was already active.
The court's decision underscores a tough stance on financial crimes. It prioritizes the recovery of funds for defrauded investors over the liberty of the accused, especially when there is a history of evading the judicial process.
