BZ scam: Zala defrauded educational institutes, teachers of crores
Updated: Dec 3rd, 2024
The investigation by the CID Crime team, which is probing the multi-crore fraud cases under the name of BZ Financial Services in North Gujarat and Central Gujarat, is gathering strong evidence against the mastermind, Zala.
During their investigation of the financial transactions in the trustee-linked bank accounts, shocking details came to light. Zala took over Growmore Education for ₹125 crore, paid a ₹26 crore bribe to obtain the financial rights of the institute, and then, under the pretense of renovation, took a ₹10 crore mortgaged loan under the name of institute. From this ₹10 crore loan, he transferred ₹8 crore to BZ’s account.
He also lured teachers, offering them commissions to bring in investments. The investigation revealed that he had withdrawn cash from the accounts of 85 teachers, where investments were deposited. Moreover, ₹75 lakh out of ₹85 lakh meant for student scholarships was also transferred to BZ’s bank account.
What is the BZ scam?
Zala promised ₹3,000 per month for an investment of ₹1 lakh while in a fixed deposit scheme, a return of ₹2,50,000 per year was promised on the principal amount of ₹1,00,000. Millions of middle-class investors were lured by this tempting offer and invested lakhs and crores.
He opened offices at various locations and activated agents in Talod, Ransan, Himmatnagar, Vijapur, Modasa, Malpur in Aravalli, Gandhinagar, and Vadodara districts to collect money from investors.
Also read :
BZ scam: How Bhupendrasinh Zala built empire worth crores in four years
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