Massive Ponzi Scheme Unraveled in Gujarat

Authorities uncovered a major Ponzi scheme in Gujarat, with Rs 175 crore in dubious transactions linked to operator Bhupendrasinh Zala. Promising high returns, Zala allegedly defrauded investors of Rs 6,000 crore, operating illegitimately without RBI approval. Police continue their efforts to apprehend the fugitive and unravel the scam.

Authorities in Gujarat have uncovered a large Ponzi scheme reportedly involving Rs 175 crore in suspicious transactions. The scheme's operator, Bhupendrasinh Zala, is accused of defrauding investors by promising them returns as high as 36 percent annually, according to a statement by the police on Wednesday.

Additional Director General of Police, CID Crime and Railways, Rajkumar Pandian, revealed that unverified reports suggest the scam might total Rs 6,000 crore. Zala, who is now on the run, was identified as the mastermind behind the fraudulent operation. An agent linked to his enterprise has been apprehended, and significant assets confiscated.

Operating under the guise of 'BZ Financial Services,' Zala allegedly collected deposits unlawfully without the necessary approvals, enticing investors with initial gains. The police intensified their efforts with raids across several locations to dismantle the intricate web of deceit, while continuing their pursuit to capture Zala.

(With inputs from agencies.)