The Gujarat Police’s CID Crime Branch is investigating the BZ Group scam and has revealed new details, particularly regarding the involvement of 11,000 investors across multiple regions. Bhupendrasinh Zala, the mastermind behind the ‘Ponzi’ scheme, had established a company that defrauded thousands of people by promising high returns on investments.
The investigation has highlighted the sheer scale of the operation, with victims coming from various districts, including Mehsana, Himatnagar and Amreli, in Gujarat, as well as from other states.
Deputy Inspector-General (CID Crime) Parikshita Rathod confirmed that the scam involved investments amounting to significant sums, with the total outstanding amount still reaching Rs 100 crore.
“The number of investors involved was estimated to be around 11,000, many of whom were lured by promises of guaranteed returns that never materialised,” Rathod said.
Through a detailed probe, the CID Crime discovered that these 11,000 investors had placed their trust in Zala’s fraudulent schemes, believing the false assurances of substantial financial gains.
Investigators revealed that many victims, including those from economically disadvantaged backgrounds, had invested their life savings in hopes of a brighter future.
The investigation has also uncovered that several high-value investors, including individuals who invested more than Rs 1 crore, were involved in the scam.
The CID Crime has identified numerous investors who were enticed to invest large sums through the fraudulent BZ Finance scheme.
“Zala’s close relations with these high-stakes investors raised suspicions and investigations are now focused on identifying how the scam was orchestrated and how these large-scale investments were channelled through various financial operations,” said a senior police official.
The CID Crime has traced transactions through seven different bank accounts, which were used by Zala to facilitate fraudulent activities. These accounts have been flagged for financial irregularities and further forensic investigations are underway to examine the flow of money.
Other players/agents in scam
In addition to financial transactions, the CID Crime has also been delving into the role of agents who were allegedly involved in the scam. The agents were crucial in recruiting investors from across Gujarat and other states.
Many of these agents promised high returns and misled people into investing without proper knowledge of the risks. It is believed that these agents also resorted to threatening investors to prevent them from filing complaints when they realised they had been deceived.
According to sources close to the investigation, agents also operated as enforcers, discouraging victims from speaking out or pursuing legal action against the BZ Group. However, many of the 11,000 investors have now come forward, filing complaints and aiding the CID Crime in their investigation.
“Over 100 statements recorded”
Rathod confirmed that the CID Crime had already taken over 100 statements from various parties involved in the case. These included victims, agents and individuals linked to the BZ Group’s operations.
Initial reports suggest that Zala managed to acquire assets worth over Rs 100 crore through his illicit operations. These assets are currently being scrutinised as part of a broader effort to recover some of the stolen funds.
How big is the scam?
The total estimated amount defrauded in the BZ Group scam has now reached Rs 6,000 crore, though CID Crime has so far managed to recover Rs 450 crore.
Rathod also confirmed that investigations are not only focused on financial transactions but also on the role of digital currencies in the scam. Evidence suggests that some of the funds may have been channelled into digital platforms and the CID Crime is now investigating this aspect to uncover any further irregularities.
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