Ahmedabad: CID (Crime) on Wednesday arrested a school principal for his alleged involvement in the multicrore BZ Group Ponzi scam. So far, 10 people, including the mastermind and local BJP leader Bhupendrasinh Zala, have been arrested in the case.
According to police officials, Vinod Patel, a primary school headmaster from Modasa who managed the Modasa franchise of BZ Financial Services, was arrested on Wednesday. Patel played a crucial role in convincing people, including numerous retired and active teachers from Sabarkantha and Aravalli districts, to invest in the scheme. He earned approximately Rs 1 crore in commissions after securing investments worth Rs 70 crore from 1,300 individuals.
The case was registered on Nov 27, 2024, under multiple sections of the Bharatiya Nyaya Sanhita-2023, Gujarat Protection of Interest of Depositors Act, 2003, and Banning of Unregulated Deposit Schemes Act, 2019. Cops revealed that while Rs 172.59 crore owed to 6,866 investors remains unpaid, a total of 11,232 investors were targeted.
Zala, who was arrested on Dec 27 from Mehsana, allegedly lured investors with promises of high returns ranging from 7% to 18% in the form of interest and bonuses, amassing over Rs 422.96 crore through fraudulent schemes. During questioning, Zala admitted that BZ Financial Services lacked approval from the Reserve Bank of India (RBI) for its financial operations. The company extensively promoted its schemes through a dedicated website, luring investors with false assurances of high returns.