The Enforcement Directorate (ED) and Central Goods and Services Tax (CGST) department are set to investigate a massive Rs 6,000 crore Ponzi scam allegedly masterminded by BZ group owned by Bhupendrasinh Jhala, a political worker from Sabarkantha. The scheme, found by the CID (Crime) following an anonymous tip-off, defrauded numerous investors through illegal deposit collection.
“The CGST department has already started its inquiry and the ED will initiate a formal investigation once the charge sheet is filed,” a senior CID officer stated.
On Friday, police teams raided Jhala’s residence in Raigadh village, Himatnagar taluka, Sabarkantha, seizing three luxury cars. They also confiscated two SUVs belonging to co-accused Mayur Darji. The CID is now preparing to seize all properties linked to Jhala.
“Cops are analysing data from the case, and we anticipate more victims will come forward. Their statements will help establish the full extent of the scam,” added the officer.
Jhala, who once filed a nomination as an independent candidate in the Sabarkantha Lok Sabha elections but later withdrew, went into hiding after the CID began raiding his premises.
The investigation revealed that Jhala had floated a firm, BZ Financial Services, operating offices in north Gujarat, Gandhinagar and Vadodara. Posing as the CEO of the BZ Group, he collected deposits from unsuspecting individuals without obtaining approvals from the Reserve Bank of India or other regulatory authorities.
Initially, Jhala gained trust by delivering promised returns on investments. He employed agents on commission to attract depositors, expanding his fraudulent scheme across multiple districts.
The CID formed specialised teams to raid six rented offices of BZ Financial Services in Sabarkantha, Gandhinagar, Aravalli, Mehsana and Vadodara districts. On Wednesday, the CID registered an FIR against Jhala and his accomplices, charging them with cheating, breach of trust and criminal conspiracy under the Bharatiya Nyaya Sanhita, the Gujarat Protection of Interest of Depositors Act and the Banning of Unregulated Deposit Scheme Act.
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