Mumbai Jeweller Caught In Ponzi Scheme Blames CEO And Accountant For Missing Funds

Mumbai-based Torres Jewellery has been implicated in a scam that allegedly swindled over Rs 12 crore of investors' money.

The company, initially engaged in diamond trade, lured investors with promises of 4–11% weekly returns. Early investors did get the promised benefits. People were paid out returns on their initial investments and added a bonus for every new participant they brought in, investors involved in the scheme told NDTV Profit.

But this month, as more and more investors joined in, Torres stopped payouts and locked its showrooms. Several investors, which includes police officers in the region, fell prey to this pyramid scheme.

The supposed investment scheme spread actively across Mumbai via word of mouth beginning as early as July of 2024, NDTV Profit was told. Since Torres has outlets in key population hubs like Dadar, Grant Road, Kalyan, and Mira Road, which enabled the ballooning of the scheme at a quick pace.

People have invested, and lost, anywhere between Rs 20,000 and Rs 50 lakh in Torres' scheme.

Investors NDTV Profit spoke to highlighted how there was a sophisticated mobile application for investors and even receipts for initial investments.

In an interesting turn of events, a website that claims to be Torres' online store has put up a notice that alleges that the company's chief executive, Tausif Reyaz, and accountant Abhishek Gupta, along with their accomplices, vandalised and robbed the company showrooms overnight.

The original FIR was registered with the Shivaji Park Police Station, but the matter is now under investigation by the Economic Offences Wing.

As per NDTV reports, three arrests have been made in the case so far, including two foreign nationals.

On Dec. 7, a huge crowd of agitated investors gathered outside the Dadar showroom of Torres amid heavy police deployment. NDTV Profit learnt that several individuals invested against heavy debt as they were lured by the quick and high profits of up to 11%. Many investors also put in capital through the names of multiple family members in order to cash in on the referral programme.

Most investors gathered outside the showroom voiced their desire to get their original capital back, even if they could not salvage the promised return on investment.

Some investors also told NDTV Profit that they had received communication from Platinum Hern Pvt., the parent of the Torres brand, promising them their investment back. NDTV Profit was not able to verify the authenticity of these claims.