Supreme Court Issues Notice On Prayag Group Promoters' Bail Plea In ₹2,862 Crore PMLA Case

The Supreme Court on Friday issued notice on a plea by Prayag Group promoters Basudeb Bagchi and Avik Bagchi challenging a Calcutta High Court order refusing them regular bail in a PMLA case. The Enforcement Directorate alleges the promoters defrauded investors of around Rs. 2,862 crores.

A Bench of Justices Vikram Nath and Sandeep Mehta noted the ED's appearance on advance notice and dispensed with formal service of notice on the agency. The matter has been listed for hearing on July 14, 2026. The Court granted the ED four weeks to file a counter affidavit and allowed the petitioners two weeks thereafter to file a rejoinder.

The promoters have been accused of defrauding thousands of investors through time-share, real estate, and gold-based investment schemes and siphoning proceeds of crime through shell entities.

While rejecting bail on January 15, 2026, the High Court had observed, “The liberty of an individual cannot be viewed in isolation from the collective interests of thousands of defrauded investors.”

The challenge arises from an ECIR registered by the ED in 2024. According to the prosecution, the promoters allegedly defrauded thousands of investors through time-share, real estate, and gold-based investment schemes over several years, involving around Rs. 2,862 crores.

While the promoters claimed to have facilitated refunds of approximately Rs. 1,140 crores, the agency alleged that nearly Rs. 1,906 crores remained untraced and represented proceeds of crime layered through shell entities.

The ED also alleged that fresh proceeds of crime were generated even after the commencement of an earlier investigation in 2016.

Before the High Court, the petitioners argued that the present ECIR was a mirror copy of the earlier 2016 investigation and that their continued incarceration amounted to pre-trial punishment.

Rejecting the plea, the High Court held that the petitioners failed to satisfy the twin conditions under Section 45 of the PMLA. It also observed that economic offences involving public money constituted a “class apart.” The High Court directed the trial court to expedite proceedings on a day-to-day basis.

The promoters have now approached the Supreme Court seeking regular bail.