[4][5] He left The Times of India in 1941 to launch Blitz (newspaper), a weekly tabloid with a focus on investigative journalism.

It was one of the few Indian newspapers to have carried out interviews with the high and mighty, including the likes of Fidel Castro and Zhou Enlai.

The Daily and The Blitz were also incubators for the likes of R.K. Laxman, Haroon Rashid, P. Sainath and Teesta Setalvad, all of whom started their journalistic careers there.

The columnist Sudheendra Kulkarni wrote about how the decision to launch Blitz was taken over a cup of tea between three patriotic journalists, ie, BV Nadkarni, Benjamin Horniman, and Karanjia, at the Wayside Inn, a restaurant near Kala Ghoda, Mumbai.

Initially a fierce critic of the Indian guru Sathya Sai Baba, Karanjia later became his devotee in 1976.