The CID Crime Branch of the Gujarat Police is looking into the BZ Group scam and has uncovered new information, especially about the 11,000 investors who were involved in various regions. In order to mislead thousands of people, the “Ponzi” scheme’s creator, Bhupendrasinh Zala, founded a business that promised large returns on investments.
The probe has brought to light the operation’s enormous scope, with victims hailing from several Gujarati districts, such as Mehsana, Himatnagar, and Amreli, in addition to neighboring states.
According to Parikshita Rathod, Deputy Inspector-General (CID Crime), the scheme comprised investments totaling substantial sums, with Rs 100 crore still owed.
Rathod said, “The number of investors involved was estimated to be around 11,000, many of whom were lured by promises of guaranteed returns that never materialized”.
After conducting a thorough investigation, the CID Crime found that these 11,000 investors had trusted Zala’s fraudulent schemes because they were promised significant financial gains.
Investigators found that many victims had deposited their life savings in the expectation of a better future, especially those from low-income families.
The inquiry has also shown that the scheme featured a number of high-value investors, including those who contributed over Rs 1 crore.
According to the CID Crime, many investors were lured into making sizable investments through the bogus BZ Finance scheme
A senior police official stated, “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 operationsठ.
Transactions involving seven distinct bank accounts that Zala utilized to enable fraudulent operations have been tracked by the CID Crime. The money flow is being examined through additional forensic examinations after these accounts were reported for financial issues.
Other players/agents in scam
The CID Crime has been investigating the involvement of agents who were purportedly involved in the scheme in addition to money activities. In order to attract investors from Gujarat and other states, the agents played a critical role.
Many of these agents deceived customers into investing without fully understanding the risks by promising large returns. It is thought that when investors realized they had been duped, these agents also used threats to keep them from complaining.
Sources close to the investigation claim that agents also served as enforcers, deterring victims from coming forward or taking the BZ Group to court. However, a large number of the 11,000 investors have now come forward, assisting the CID Crime with their investigation and filing complaints.
“More than 100 statements were recorded”
Rathod affirmed that more than 100 statements from different case participants had already been collected by CID Crime. These were agents, victims, and those connected to the activities of the BZ Group.
According to early allegations, Zala’s illegal activities allowed him to amass assets valued at more than Rs 100 crore. As part of a larger attempt to retrieve some of the stolen money, these assets are presently being examined.
How big is the scam?
Although CID Crime has recovered Rs 450 crore so far, the projected total amount scammed in the BZ Group case has now surpassed Rs 6,000 crore.
Rathod added that the involvement of digital currency in the scam is being investigated in addition to financial activities. Evidence points to the possibility that some of the money was transferred to online platforms, and CID Crime is currently looking into this possibility in order to find any other anomalies.
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