Ponzi Scheme Mastermind Bhupendra Zala in Custody: 14-Day Remand Sought, Investigation Into Aide Kiran Chauhan’s Political Links

After the arrest of Bhupendrasinh Zala, the mastermind behind a massive ₹6,000 crore Ponzi scheme operated from Himatnagar, Gujarat, the CID Crime conducted a marathon interrogation on Friday night. Following a medical examination at Gandhinagar Hospital, Zala will be presented in Ahmedabad’s GPID (Gujarat Protection of Interest of Depositors) Court today, seeking a 14-day remand.

Investigations are also underway into the political connections of Kiran Chauhan, who allegedly provided shelter to Zala in Mehsana. Zala had been absconding for over a month before the CID Crime apprehended him during a raid at a farm in Devada village, Mehsana.

This high-profile scam highlights the extensive fraud carried out through the Ponzi scheme, impacting countless depositors. Authorities are delving deeper into the network to unearth more details about the scam and its accomplices.

Bhupendrasinh Zala to Be Presented in Court; 14-Day Remand Sought

During the interrogation of Bhupendrasinh Zala, it was revealed that he had obtained a finance lending license specifically for the Himatnagar area. Further investigations are ongoing into the relationship between Zala and Kiran Chauhan, who allegedly provided shelter to him in Mehsana due to their caste ties. Chauhan’s political connections are also under scrutiny.

The authorities are probing Zala’s financial transactions, including where the collected funds were invested and the repayment trail to the investors. Additionally, investigations are being carried out to identify those who sheltered Zala during his absconding period.

Today, Zala will be presented in Ahmedabad’s Narayanpura GPID (Gujarat Protection of Interest of Depositors) Court, where the police will seek a 14-day remand. The remand is crucial for further investigation into Zala’s conversion of black money to white and to uncover additional details of the Ponzi scheme’s operations.

CID Conducts Marathon Interrogation of Ponzi Scheme Mastermind

Bhupendrasinh Zala, the mastermind behind a multi-crore Ponzi scheme, had been on the run for over a month. Acting on a tip-off, the CID Crime apprehended him from a farmhouse in Devada village, Mehsana.

On Friday night, Zala was brought to Gandhinagar, where a marathon interrogation session was conducted. Following the questioning, he was taken to Gandhinagar Hospital for a medical examination.

The CID is intensifying its investigation to uncover the full extent of Zala’s fraudulent activities and the network that aided him during his time on the run.

CID Tracks Bhupendrasinh Zala for a Month, Arrests Him from Mehsana Farmhouse

The CID Crime team, led by DCP Chaitanya Mandlik, had been pursuing Bhupendrasinh Zala of the BZ Group for a month in connection with a ₹6,000 crore Ponzi scheme. Initially, the team traced Zala’s brother, Ranjit Zala, to the Gromor Campus in Himatnagar. However, Bhupendrasinh managed to flee to Mehsana.

On Thursday, CID received confirmed information that Zala had arrived in Devada village, Mehsana. Acting swiftly, CID teams began searching the area throughout the day and night. Despite extensive efforts, no leads emerged.

By Friday morning, the CID began combing the fields and spotted suspicious activity involving a white luxury car. This led them to a farmhouse in Devada, where Zala was hiding. Surrounding the farmhouse from all sides, the CID team successfully arrested him.

The operation marked the end of Zala’s month-long evasion and a significant breakthrough in the investigation of one of Gujarat’s largest financial fraud cases.

Bail Pleas of 7 Accused in ₹6,000 Crore Ponzi Scheme Rejected by Court

The Ahmedabad Rural Court on Friday rejected the bail applications of seven accused arrested by the CID Crime in the BZ Ponzi scheme fraud. The government prosecutor argued against granting bail, highlighting the scale of the scam, which amounts to ₹6,000 crore. Initial investigations revealed that agent Mayur Darji alone had collected ₹1.09 crore, while further probes uncovered ₹360 crore worth of transactions. 

A diary from an office in Himatnagar documented ₹52 crore in dealings, and one of the applicants had earned ₹29.64 lakh in commission. The accused facilitated investments worth ₹4 crore into the BZ company from unsuspecting individuals.

Defense lawyers argued that the accused were merely office staff, such as clerks and office boys, with no direct involvement in the scam. They claimed the police had failed to apprehend the main culprit and instead targeted these individuals. The defense also asserted that the accused had received no financial benefits.

The government prosecutor countered these claims with evidence of significant financial discrepancies. For instance:

• Rahul Rathod, earning a monthly salary of ₹10,000, had bank transactions worth ₹10,91,472 and cash dealings of ₹17.40 lakh.
• Vishal Zala, earning ₹12,500 monthly, had bank deposits of ₹19,77,676 and cash transactions exceeding ₹19 crore.
• Additionally, assets worth ₹1.85 crore in angadia transactions were also uncovered.

The court concluded that the accused were actively involved in the fraudulent activities and denied their bail applications, citing their roles in the massive financial fraud.

Court Rejects Bail Pleas of Accused Employees in Ponzi Scheme

The Ahmedabad Rural Court dismissed the bail applications of additional accused employees in the ₹6,000 crore Ponzi scheme case. Despite their claims of being low-salaried workers, the CID Crime investigation revealed significant financial discrepancies in their accounts:

• Ranveer Chauhan: Employed for the past four months with a monthly salary of ₹12,000, yet bank transactions totaling ₹13.35 lakh were uncovered.
• Sanjay Parmar: A sanitation worker earning ₹7,000 per month for eight months, found with ₹4.54 lakh in his bank account, ₹1.56 crore in cash, and assets worth ₹60 lakh in angadia transactions.
• Dilip Solanki: An employee earning ₹10,000 per month for eight months, with ₹10,072 in his bank account but cash transactions of ₹1.20 crore.
• Ashik Bharthari: A sanitation worker earning ₹7,000 monthly, with ₹8,400 in his bank account, ₹44.98 lakh in cash transactions, and ₹8.04 lakh in angadia dealings.

After hearing arguments from both sides, the court concluded that the accused were involved in the fraudulent financial activities of the BZ Ponzi scheme and rejected their bail applications.