The Torres jewellery investment scheme has rocked Mumbai, leaving thousands of investors in financial distress. The company, which promised extraordinary returns through investment schemes, abruptly shut down operations in January 2025. Police investigations have uncovered a trail of fraud amounting to ₹13.48 crore, though the total loss is expected to be much higher.
A Fraudulent Investment Scheme
In February 2024, Torres Jewellery launched several investment schemes across its six stores in Mumbai and nearby areas, including Dadar, Mira Road, Vashi, Kalyan, and Grant Road. The schemes were marketed as lucrative opportunities, attracting middle-class and lower-income investors with promises of high returns and additional perks.
Under one such scheme, customers investing ₹1 lakh received a ₹10,000 discount on a moissanite stone pendant and a weekly payout of 6% of their investment over 52 weeks. By mid-2024, the promised returns were increased to 11%, further enticing new investors.
Initially, investors received regular payouts, which reinforced trust in the scheme. However, by December 2024, payouts began to falter. On January 6, 2025, the company’s stores shut their doors without explanation, sparking panic among investors.
Investors Demand Justice
The fallout of the Torres jewellery investment scheme has been devastating. Investors from all walks of life, including small business owners, vegetable vendors, and traders, have reported significant financial losses.
Pradeep Kumar Vaishya, a vegetable vendor from Dadar, lost ₹7 lakh to the scheme. “Initially, they told me the delay in payments was due to technical issues with the bank. When I visited the store on January 6, it was shut, and I realized I had been cheated,” he said. Vaishya revealed that his extended family and friends had collectively lost ₹4.55 crore.
Another investor, a stationary shop owner from Kurla, said, “I invested ₹3 lakhs, and our group collectively put in ₹3 crores. We were lured by the high returns they promised. Now, all my savings are gone.”
Many investors have expressed anger at the lack of government intervention, citing Torres jewellery’s GST and CIN registration as factors that misled them into believing the scheme was legitimate.
Police Investigations and Allegations
The Shivaji Park police have registered cases against the holding company, Platinum Hern Private Limited, and its directors Survesh Ashok Surve and Viktoria Kovalenko. CEO Tausif Reyaz (alias John Carter), General Manager Tania Kasatova, and Store In-Charge Velantino Kumar are also among those accused.
The charges include cheating, criminal breach of trust, and conspiracy under sections of the Bhartiya Nyaya Sanhita, 2023, and the Maharashtra Protection of Interest of Depositors Act, 1999.
Police suspect the actual amount defrauded could exceed ₹100 crore, as over 1,25,000 investors participated in the scheme. Complaints have also been lodged at police stations in Vashi, Mira Road, and other locations, with some accused believed to have fled the country.
Torres’ Shocking Allegations Against Its CEO
Amid the chaos, Torres jewellery released a video on its official YouTube channel, blaming CEO Tausif Reyaz and Chief Analyst Abhishek Gupta for orchestrating a coup. The company alleged that Reyaz and Gupta looted jewellery, cash, and other assets from the stores.
The video purportedly showed CCTV footage of individuals breaking jewellery cases, opening safes, and vandalizing stores. Torres claimed that Reyaz and Gupta systematically diverted company funds for months and, realizing they would be caught, organized the looting as a last-ditch effort to escape consequences.
The Bumper Draw That Fueled the Scheme
Just days before shutting down, Torres announced a “bumper draw” on January 1, 2025. The company promised an 11% return on investments made before January 5, with an additional 0.5% incentive for cash payments. This announcement led to a fresh wave of deposits. However, by January 6, the stores were shuttered, leaving investors stunned.
Historical Precedents and Lessons
The Torres jewellery investment scheme mirrors past financial frauds in India, such as the Saradha and Rose Valley scams. These schemes exploit vulnerable populations, offering unrealistically high returns while leveraging trust built through initial payouts and superficial legitimacy, such as GST registrations.
Despite regulatory measures, Ponzi schemes continue to thrive, exploiting loopholes and targeting financially unsophisticated individuals.
Investors Call for Government Intervention
Investors have called on the government to take swift action to recover their funds. “We don’t want the interest; just give us our money back,” said one investor. Others criticized authorities for failing to monitor the scheme, with one investor stating, “This business ran for eight-nine months. Where was the government during this time?”
Police investigations are ongoing, with efforts focused on tracing the accused and recovering the defrauded amounts.
A Wake-Up Call for Investors
The Torres jewellery Ponzi scheme serves as a grim reminder of the need for caution in investment decisions. Experts urge individuals to thoroughly vet investment opportunities, particularly those promising unusually high returns.
As the investigation unfolds, the scheme’s impact will likely prompt stricter regulations and increased awareness to protect investors from similar scams in the future.