The Gujarat High Court on Monday declined the anticipatory bail application of Bhupendrasinh Zala, accused of orchestrating a substantial Ponzi scheme that reportedly defrauded a diverse group of investors including cricketers and school teachers. Justice MR Mengdey, presiding over the case, chose not to grant Zala’s request for bail after careful consideration of arguments from both the defense and the prosecution.
According to the prosecution, Zala had channelled approximately Rs 360 crore into various bank accounts linked to his financial entities, including BZ Financial Service. Investigations revealed that out of the total funds received between 2020 and 2024, Zala had allegedly withdrawn substantial amounts before his accounts were frozen, leaving a balance of only Rs 1 crore.
The alleged fraud came to light in November when the state’s Criminal Investigation Department (CID) detected suspicious transactions in Zala’s accounts. He is accused of luring investors with the promise of a 36 percent return on their deposits. The CID’s probe further uncovered that Zala had utilized around Rs 100 crore of the embezzled funds to acquire 17 properties and five luxury cars, collectively worth Rs 9 crore.
The scam, which primarily targeted individuals in north Gujarat, Gandhinagar, and Vadodara, has affected numerous investors, including five to six cricketers and several school teachers. The CID had intensified its scrutiny of Zala’s financial activities following an anonymous tip last month, which eventually led to the registration of an FIR on November 27, 2024.
