CID Raids on BZ Group: Promised to Double Fixed Deposits and Collected ₹6,000 Crore, CEO Bhupendra Zala and Agents Go Underground

In a major operation on Tuesday, the CID Crime team simultaneously raided offices of operators and their agents running high-interest private finance offices in North Gujarat, including Sabarkantha. These offices had been attracting investors with promises of high returns.

The CID Crime team conducted raids on BZ Financial Services’ offices across seven districts, which had been luring investors with the promise of doubling fixed deposits within three years and offering a 7% monthly interest on investments. 

The company allegedly collected around ₹6,000 crore from investors. Further investigation revealed that BZ Financial Services also had offices in Gujarat and Rajasthan.

CEO Bhupendrasinh Zala and Agents Go Underground Following Police Raid

Following the police raids, Bhupendrasinh Zala, the CEO of BZ Group, along with agents, went underground. Investigations revealed transactions worth ₹175 crore across two bank accounts. 

According to CID Crime officials, they recently received an anonymous complaint stating that Bhupendrasinh Parbatsinh Zala, the CEO of BZ Financial Services and BZ Group, had opened offices in Gujarat and Rajasthan. 

These offices operated by forming a chain of agents, enticing investors with promises of doubling fixed deposits in three years and offering a 7% monthly interest on their investments.

Bhupendra Zala Withdrew Independent Candidacy After Filing Nomination in Lok Sabha Elections

Bhupendra Zala, the operator of BZ Group, went underground after the police raids, leading to growing concerns among investors who had invested millions. The CID Crime team conducted the raids due to illegal schemes promising high returns to investors. 

Following the raids, agents were interrogated, and further investigations revealed that Bhupendra Zala had filed an independent candidacy for the Lok Sabha elections. However, after failing to garner the expected support, he withdrew his nomination.

In his affidavit submitted with the nomination, Zala declared an income of only ₹17.94 lakh as per his Income Tax returns, with earnings of just ₹4.98 lakh in 2018-19 and ₹9.79 lakh in 2021-22. Despite this modest income, he was accused of raising ₹6,000 crore from investors through fraudulent schemes.

Sonu Sood Honors Bhupendra Zala with Award at BIAA Bollywood Awards

At the BIAA Bollywood Awards event held in Mumbai, Bollywood actor Sonu Sood honored Bhupendrasinh Zala, CEO of BZ Group, by presenting him with an award. During the event, Bhupendra Zala also gifted Sonu Sood a handcrafted art piece as a token of appreciation.

How Will Investors Get Their Money Back? A Major Concern

A major question now looms over how investors will recover their money, as there are growing concerns about whether their funds were transferred abroad. Agents lured investors with the promise of 1% monthly returns, convincing them to invest millions. 

The scheme promised to double their investment in just three years. A large number of investors include farmers, teachers, police officers, and government officials. In recent days, shutters of all BZ Group offices have been seen closed, adding to the uncertainty and anxiety surrounding the situation.

BZ Group Running Ponzi Scheme: Fake Business Exposed

According to sources, BZ Group started a Ponzi scheme business in a village in Himmatnagar taluka. Initially, the company deployed agents in various parts of North Gujarat, including Himmatnagar, Ranasan, Gambhoi, and Rajgarh, to attract investors by promoting the Ponzi scheme. 

Investors were promised high monthly returns, which led BZ Group to expand across several regions in North Gujarat. On Tuesday, the CID Crime team simultaneously raided BZ Group’s branches in Himmatnagar, Aravalli, and other parts of North Gujarat, seizing documentary evidence of the fraudulent activities.

CID Seizes ₹20 Lakh in Cash and Documents from Himmatnagar Office

The CID raid at the BZ Group’s office located at Vyapar Bhavan in Himmatnagar was ongoing since the morning, with several agents being questioned. During the raid, an estimated ₹20 lakh in cash and a large number of documents were seized. 

The operation continued late into the night, with documents also being confiscated from a vehicle for further investigation. In addition, CID teams conducted simultaneous raids across Gujarat, including Himmatnagar, as part of the ongoing inquiry.

CID Conducts Search Operations Across Multiple Gujarat Cities, Seizes Key Documents

The CID team conducted simultaneous search operations across several cities in Gujarat, including Gandhinagar, Vadodara, Himmatnagar, Vijapur, Modasa, Ranasan, and Malpur in Aravalli district. Investigations revealed that BZ Group had collected around ₹6,000 crore from investors by offering higher interest rates and returns than nationalized banks and financial institutions. 

The CID team’s probe, based on an anonymous complaint, uncovered that the company had set up offices in various districts, including Talod, Himmatnagar, Vijapur, Modasa, Gandhinagar, Vadodara, and Malpur. Over 50 CID officers and staff from seven teams raided these offices, recovering crucial documents from most of them.

Police Uncovers ₹175 Crore Transactions in Two Bank Accounts

The police have identified two bank accounts linked to BZ Group, where transactions totaling ₹175 crore have been recorded. Authorities stated that an investigation has been initiated based on these documents, and legal action will be taken if necessary. 

Additionally, while conducting raids on BZ Group’s offices in Rajasthan, coordination was made with the Rajasthan Police to assist in the operation.

BJP Leader Bhupendrasinh Zala, CEO of BZ Group, Under Investigation

According to the police, Bhupendrasinh Zala, CEO of BZ Group, had also opened offices in other cities, districts, and villages, which were operated by agents. 

In addition to the offices already raided, the police have obtained addresses of other offices. CID Crime will continue their raids on Wednesday. The police have also started questioning staff members involved in the operations.

Documents Seized from Offices During CID Raids

The CID raids on BZ Group’s offices resulted in the recovery of the following documents:

• Two bank accounts with ₹175 crore in transactions
• Agreements with investors
• Application forms
• Fixed deposit forms
• Cash vouchers
• Renewal forms
• Advance amount forms
• Passbooks of investors
• Withdrawal forms

CEO Bhupendrasinh Zala and Agents Go Underground

According to the police, during the raids, neither CEO Bhupendrasinh Zala nor any of the agents were found at any of the offices. Instead, only office employees were present, who claimed to have no knowledge of the fraudulent activities. 

As a result, the police have launched a search for Bhupendrasinh Zala and are working to obtain the names and addresses of the agents in order to capture them.