Two top executives of a West Bengal-based group of companies have been arrested in connection with ongoing investigation into a chit fund case, a CBI official said on Wednesday.

"On the basis of a case registered by the Central Bureau of Investigation, the then Chief Managing Director Basudeb Bagchi and Managing Director Avik Bagchi of Prayag group of companies have been arrested for illegally collecting money from investors by fraudulently promising very high returns," a CBI spokesperson said.

According to the CBI, investigation has revealed that both accused allegedly collected approximately Rs 2,862 Crore from poor investors without permission from regulatory bodies and cheated them by not ensuring promised returns.
"Both accused will be produced before the Additional Chief Judicial Magistrate at Bidhan Nagar court on Thursday," the official said.