ED conducts raids in Mumbai and Jaipur over Torres Ponzi scheme and money laundering case

ED searches in Torres Ponzi case linked money laundering case

The Enforcement Directorate (ED) is conducting raids at 10 to 12 locations in Mumbai and Jaipur as part of its investigation into Torres, a jewellery brand accused of operating a Ponzi scheme and misleading investors through multi-level marketing (MLM) tactics. The raids follow a criminal complaint filed under the Prevention of Money Laundering Act (PMLA), based on an FIR registered by the Mumbai Police Economic Offences Wing (EOW).

Thousands of investors allegedly defrauded

More than 3,700 investors have lodged complaints with the Mumbai Police, alleging they were defrauded by Torres. The investors claim they were promised lucrative returns but began facing non-payment issues earlier this month. The scale of the fraud became apparent when hundreds of angry investors gathered at the Torres jewellery store in Dadar (West), demanding the promised payouts.

Key arrests in the case

Authorities have arrested three senior executives from Torres:

1. Tazagul Xasatov, an Uzbekistani national.
2. Valentina Ganesh Kumar, a Russian national.
3. Sarvesh Surve, an Indian national.

Investigators revealed that the company lured investors with extravagant promises, offering rewards like cars, flats, gift cards, and hampers to entice participation in the fraudulent scheme.

High Court criticizes police inaction

The Bombay High Court has criticized the Mumbai Police for their slow response in handling the case. A division bench of Justices Revati Mohite Dere and Neela Gokhale reprimanded the police for their lack of urgency, stating, “Nobody has acted with alacrity.” The court expressed concern over the delayed actions, emphasizing the need for prompt responses in such high-profile cases.

Focus on identifying the mastermind

Both the ED and Mumbai Police are collaborating to identify the mastermind behind the scheme. The prime suspect is believed to be the founder of Platinum Hern, the parent company of the Torres jewellery brand, which allegedly provided the initial funds for the fraudulent operations. Authorities are intensifying efforts to locate this individual to uncover the full scale of the scam.

Efforts to unmask the fraud

The ED’s investigation and police efforts aim to bring the perpetrators of this fraud to justice. This case underscores growing concerns about Ponzi schemes and fraudulent investment practices, prompting authorities to increase scrutiny and crack down on such activities.

Further developments in the investigation are awaited as officials work to unravel the scam and recover funds for the victims.

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