On November 23, a significant protest erupted in Qazvin, drawing over 20,000 defrauded investors of the “Rezayat Khodro Taravat Novin” company. The company, which reportedly holds investments from 40,000 individuals across 13 provinces, has faced widespread accusations of fraud, with 28,000 official complaints filed against it.
The company’s primary defendant, Mohammad Reza Ghaffari, a known member of the IRGC, is accused of embezzling funds from customers who paid for vehicles that were never delivered. Ghaffari leveraged his connections with influential figures, including MPs, judiciary officials, and clerics, to protect himself and stall legal proceedings.
According to Judge Abdolkarim Kalhor, who is presiding over the case, the dossier comprises 100 volumes of evidence, with assets such as factories, cold storage facilities, vehicles, and residential properties in Qazvin, Takestan, and Tehran identified and seized.
“The identified assets will soon be auctioned, and the proceeds will be distributed to investors after valuations are completed,” Kalhor claimed. He added that efforts are underway to locate additional overseas properties connected to the case.
The first public hearing for the case was held at the Qazvin Department of Endowments and Charity Affairs. Simultaneously, investors gathered outside, demanding swift action. Their chants of “Our tables are empty—no more hollow promises!” highlighted the urgency of their financial plight.
Security forces, including special anti-riot units, were dispatched to the protest, reflecting authorities’ concern over the scale and intensity of the unrest. While the demonstration remained largely peaceful, past protests linked to this case in Tehran were marred by clashes with security forces, resulting in arrests and injuries.
More footage of the protest rally by the creditors of Rezayat Khodro carmaker in Qazvin.#IranProtests #Iran pic.twitter.com/aDOo1eUacq
— People's Mojahedin Organization of Iran (PMOI/MEK) (@Mojahedineng) November 23, 2024
The financial scope of the scandal is staggering:
- Over 20,785 individuals invested approximately 30 trillion tomans in amounts under 250 million tomans.
- An additional 9,127 investors contributed between 250-500 million tomans, totaling another 30 trillion tomans.
- More than 1,553 individuals invested sums exceeding 1 billion tomans, amounting to a collective 40 trillion tomans.
The total investments amount to over 100 trillion tomans, representing life savings for many families.
This case is emblematic of widespread economic corruption in Iran, often linked to high-ranking officials and institutions. Ghaffari’s affiliation with the IRGC and the reported backing of his operations by security and judicial bodies highlight systemic issues.
The protest also reflects growing frustration over financial exploitation in Iran, where citizens face increasing economic disparity and inequality. Similar incidents, such as the crackdown on defrauded investors in Tehran, have underscored the government’s reliance on repression to suppress dissent rather than address root causes.
More footage of the protest rally of the customers of the state-backed Rezayat Khodro company in Qazvin.#Iran #IranProtestspic.twitter.com/GK2U4AvUDQ
— People's Mojahedin Organization of Iran (PMOI/MEK) (@Mojahedineng) November 23, 2024
Over the years, Iran’s judiciary has showcased high-profile corruption trials, yet systemic accountability remains absent. The Rezayat Khodro fraud is the latest in a string of scandals that expose the regime’s failure to curb financial malfeasance.
Historically, trials like those of Babak Zanjani and Akbar Tabari made headlines but rarely yielded meaningful change. Zanjani, convicted of embezzling billions, faced execution, but many suspect the trial shielded higher-ranking officials involved in similar schemes. Likewise, Tabari, once a top judiciary figure, received a 31-year sentence for corruption, yet whistleblowers argue his case was an isolated scapegoating effort.
The Rezayat Khodro case is emblematic of a broader crisis where state-affiliated organizations, such as the IRGC, exploit public resources while facing little to no oversight. This corruption not only erodes trust but has profound economic implications, exacerbating poverty and inequality. Transparency International’s 2019 report ranked Iran 147th out of 180 countries, underlining its systemic corruption.
Akbar Tabari, a former senior judiciary official, was sentenced in 2020 to 31 years in prison for leading a bribery network. Despite the severity of his crimes, he was released in June 2023 after serving less than three years, having posted bail of 3 trillion rials (approximately $6 million).
Similarly, Babak Zanjani, a billionaire businessman convicted in 2016 of embezzling over €2.7 billion, initially received a death sentence. In April 2024, his sentence was commuted to 20 years in prison after he returned around $2.1 billion in assets.
In recent months, state media reports have speculated that Babak Zanjani might be released through a special pardon from Supreme Leader Ali Khamenei. However, the outcome of these speculations remains unclear.
