In relation to a purported multi-crore Ponzi scheme, Bhupendrasinh Zala, the CEO of the BZ Group of Companies, was denied regular bail by a Gujarat Protection of Interests of Depositors (GPID) court on Thursday. In connection with the scam, Zala, 31, was taken into custody by the CID (crime) and later requested standard bail.
The defense contended that no investor had complained about his purported failure to return the invested money. Zala’s attorney also argued that the investigating officer’s evidence showed that the approximate investment amount was around Rs 423 crore, which was far less than the Rs 6,000 crore claimed by the police.
Pravin Trivedi, the district government’s head, objected to the bail request, citing an affidavit from the investigating officer.
The affidavit stated that 11,232 investors with investments of Rs 422,96,41,575 were listed on the BZ Group’s website. Of this, investors had not received their Rs 172,59,68,806 back.
According to the investigation, Zala took Rs 23,19,16,279 from the public funds invested in his bank accounts and received Rs 29,87,28,100 in cash, for a total of Rs 53,06,44,379, which he reportedly spent for his personal expenses.
K M Sojitra, the designated GPID judge, rejected Zala’s argument that no investor had complained about the defaults. The investigating officer stated that around 200 investor statements prima facie showed Zala’s inability to make the required payments, which the court cited.
The court also pointed out that Zala lacked a license to run a public deposit system.
Citing the current investigation, the judge also addressed the prosecution’s concerns, stating that granting bail could impede the investigation or result in the possible coercion or manipulation of witnesses. The court rejected Zala’s bail plea because it believed these worries were warranted at this point.
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