The Gujarat Crime Investigation Department (CID) on Tuesday, November 26 busted a Rs 6,000 crore Ponzi scheme fraud allegedly orchestrated by Bhupendrasinh Parbatsinh Zala, a purported BJP worker from Sabarkantha District.
This scheme reportedly targeted vulnerable groups such as teachers, retired government servants, and farmers across seven districts by offering them an extraordinarily high probable return ratio.
Scheme details
Zala’s company, BZ International Broking Private Limited, lured investors with mouth-watering prospects of earning seven percent monthly interest and sometimes verbal promises of up to 18 percent.
Additionally, the investors were provided with an incentive package in the form of coloured television sets, mobile phones, and trips to Goa in case of more investment.
The scheme’s allure included a written guarantee of double investments within three years, and this promise made the scheme popular among people who unknowingly wanted better returns than what they could get from the banking system.
CID raids and investigations
The CID Crime Branch of Gujarat Police carried out a series of raids on Tuesday, targeting BZ Group offices in various locations including Talod, Himmatnagar, and Gandhinagar. During the operation, authorities discovered huge monetary transactions amounting to Rs 175 crore in two bank accounts linked to the scam.
The raids led to the confiscation of documents and electronic devices that could prove evidence of other fraudulent activities.
Initially, Zala had earned the trust of the investors through payment of some profits. However, later on, the complaints began to surface regarding delayed payments of the promised amounts under the scheme. After these raids, Zala and his associates went underground, leading police to file an FIR against them and appealing the victims to come forward.
Bhupendrasinh Zala
The Group CEO, Bhupendrasinh Zala, according to his Facebook profile, is affiliated with the Bharatiya Janata Party (BJP) and had contested the Lok Sabha elections on an Independent ticket from the Sabarkantha Parliamentary segment.
However, his nomination was pulled out later on for some other reasons, perhaps, unforeseen. The affidavit in support of his candidature shows earnings of Rs 17.94 lakh only, as per income tax return.
Follow on Twitter | Posted by Sayima Ahmad | 
