Torres Jewellery scam: Investigators estimate losses in hundreds of crores
What's the story
The Mumbai-based chain, Torres Jewellery, is at the center of a large-scale financial scandal that could potentially cost investors hundreds of crores.
Launched in February 2024, the company drew investors with promises of high weekly interest rates and extravagant rewards in the form of precious gems.
However, by December 2024, these schemes began to collapse as interest payments stopped and investors learned that their gemstone rewards were fake.
Scam details
Torres Jewellery's fraudulent schemes and victims
Torres Jewellery lured investors with weekly interest rates of 6%-20% and rewards including flats in Mumbai, luxury cars, iPhones, and gemstones.
The company also promoted a multi-level marketing (MLM) structure similar to Ponzi schemes.
DCP Sangram Nishandar of the Economic Offence Wing, Mumbai Police, said, "It's a combination of MLM and Ponzi schemes."
He added the accused have been booked under the Maharashtra Protection of Interest of Depositors (MPID) Act.
Legal action
Arrests made and lookout notice issued in Torres scam
Three people associated with the scam have been arrested: Sarvesh Surve, a director of Platinum Hern (Torres's parent company); Valentina Kumar, a regional manager; and Tania Kasatova, who oversaw the stores.
A lookout notice has been issued for 11 other accused including Viktoriia Kovalenko, another director of Platinum Hern.
Investigators suspect this group had plans to expand their fraudulent operations to Sri Lanka and Nepal.
ED probe
Enforcement Directorate investigates money laundering allegations
The ED has launched a probe into allegations that the money cheated from investors was laundered and sent abroad.
Initially, the scam was estimated to be worth ₹57 crore, but as more victims emerge, authorities expect the amount could increase substantially.
Most of the victims belong to lower-middle and lower-income groups, including vegetable vendors and tea sellers.
Whistleblower protection
Whistleblower exposes Torres scam, court criticizes police inaction
The Bombay High Court has directed Mumbai Police to provide protection to Torres investment scam whistleblower Abhishek Gupta.
Gupta audited accounts of Platinum Hern Pvt Ltd, and approached the court seeking protection after he was threatened.
His advocates told the court he had warned authorities about this scam in June 2024.
The court slammed police for their laxity in probing the case and not securing vital evidence like CCTV footage from places associated with the accused.