He was arrested together with Andrija Hebrang on 7 May 1948. At the time he was the minister of finance and a member of the Politburo of the Central Committee of the Communist Party of Yugoslavia (CKKPJ). He was accused of collaboration with Soviet secret services. He was released late in 1950. In the Borba newspaper he admitted to having been in personal contact with the Soviet ambassador to Belgrade and to having kept him informed about the secret sessions the Central Committee of the Alliance of Communists of Yugoslavia (CKSKJ) had held in March and April 1948. To deny rumours spread by Udba, he said at a 1 December 1950 news conference that he had not been tortured in prison. Djilas later testified that Zujovic had only been isolated at Glavnjaca and that there had been no investigation at all! Since he had not been an “Ustasha agent”, criminal proceedings against him were discontinued and he was rehabilitated.