The Gujarat Crime Investigation Department (CID) on Wednesday arrested Vinod Patel, a school principal, for his involvement in the multi-crore BZ Group Ponzi scam. His arrest brings the total number of arrests in the case to 10, including Bhupendrasinh Zala, the mastermind and a local BJP leader.
Patel, a headmaster at a primary school in Modasa, managed the Modasa franchise of BZ Financial Services. He played a pivotal role in convincing many individuals, including numerous retired and active teachers from Sabarkantha and Aravalli districts, to invest in the fraudulent scheme. Patel earned around Rs 1 crore in commissions after securing Rs 70 crore worth of investments from 1,300 people.
The case was initially registered on November 27, 2024, under various sections of the Bharatiya Nyaya Sanhita-2023, Gujarat Protection of Interest of Depositors Act, 2003, and Banning of Unregulated Deposit Schemes Act, 2019. According to the police, while Rs 172.59 crore is still owed to 6,866 investors, a total of 11,232 investors were targeted by the fraudulent scheme.
The mastermind, Bhupendrasinh Zala, who was arrested on December 27 from Mehsana, reportedly lured investors with promises of high returns ranging from 7% to 18% in the form of interest and bonuses. Through these schemes, he allegedly amassed over Rs 422.96 crore. During questioning, Zala admitted that BZ Financial Services lacked Reserve Bank of India (RBI) approval for its financial operations. The company used a dedicated website to promote its schemes, falsely assuring investors of substantial returns.
The investigation into the scam continues, with further arrests expected as more details of the operation unfold.
