AHMEDABAD: In a shocking revelation, the Gujarat government admitted in the Assembly on March 24 that 11,183 people were duped by a staggering Rs 422 crore in the massive BZ scam.
The case which rocked the state led to a 22,000-page charge sheet filed at the Ahmedabad Rural Court against seven arrested accused -- before the prime mastermind, Bhupendra Jhala, was even caught.
Tightening the noose further, the CID Crime later submitted a 250-page supplementary charge sheet directly implicating Jhala in the fraudulent scheme.
Responding to Congress MLA Jignesh Mevani’s query in the Assembly, the Gujarat government revealed that as of January 31, 2025, cases have been registered against 16 individuals for duping investors under the fraudulent BZ scheme in Sabarkantha.
These scammers lured victims with false promises of doubling their money, ultimately swindling 11,183 people out of a staggering Rs 422 crore.
The government assured that legal action is actively underway against all accused. Gujarat Police's CID Crime Branch has exposed a massive financial fraud running into crores, ensnaring government employees and farmers across the state.
The elaborate scam was orchestrated by BZ Group, a private finance and investment firm operating in key North Gujarat cities like Modasa, Himmatnagar, Mehsana, and Gandhinagar.
Acting on an anonymous tip-off, the CID launched raids on BZ Group’s offices, uncovering incriminating documents that led to police complaints against the firm’s managers.
Seven agents, responsible for mobilizing investments, have been detained.
Shocking revelations emerged during the probe -- BZ Group’s CEO, Bhupendrasinh Jhala, is linked to the ruling BJP, having previously contested as an independent in the Lok Sabha elections before aligning with the party.
While BJP has distanced itself from Jhala, he insists he has no ties with the party.
Investigators found that thousands of investors from North Gujarat poured in crores, enticed by promises of lucrative returns. BZ Group falsely assured investors of 7% written interest and an additional 18% verbal commitment.
High-ticket investors were further baited -- those investing Rs 5 lakh were promised a 32-inch LED TV, while Rs 10 lakh investors were lured with a Goa trip.
The scam primarily targeted teachers and retired employees, exploiting their financial aspirations. To establish credibility, initial payouts were made, creating an illusion of legitimacy.
A network of agents, earning commissions ranging from 5% to 25%, aggressively roped in fresh investments. Even government employees and farmers fell prey to the scheme.
CID’s investigation unearthed shocking misuse of funds—Bhupendrasinh Jhala allegedly splurged investors' money on luxury SUVs like Fortuner and Harrier.
The scam’s scale was further highlighted when officials discovered that top-performing agents were rewarded with high-end vehicles, including Audis and Fortuners, as incentives for securing higher investments.