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The recent unraveling of a massive fraud involving Torres Jewellers in Mumbai has sent shockwaves through the investment community. A complaint filed by a seemingly unlikely individual – a vegetable vendor from Nariman Point – has exposed a ₹13.5 crore scam, leaving thousands of investors in a state of panic and uncertainty. The case highlights the vulnerability of investors lured by promises of exceptionally high returns, and the critical need for due diligence before committing funds to any investment scheme, particularly those promising unusually lucrative returns. The vegetable vendor, Pradeep Kumar Mamraj Vaishya, along with six other investors, initiated the legal proceedings after the company, Platinum Haren Private Limited, operating under the name Torres Jewellers, ceased all payments, including principal investments, on December 30, 2024. This abrupt halt to payments triggered widespread outrage among investors, many of whom had poured significant portions of their savings into the scheme, attracted by the exceptionally high returns offered on investments in gold, silver and, particularly, moissanite.
Torres Jewellers, which opened a large outlet in Dadar in 2024 and expanded to Mira-Bhayander, had promised annual returns of 48% on gold, 96% on silver, and a staggering 520% on moissanite. The company aggressively pushed moissanite investments, offering weekly returns of 8% to 11%, a strategy that proved particularly alluring to many investors seeking quick and substantial profits. The initial payments, made consistently over several months, fostered trust and encouraged further investment, snowballing the scheme's reach. However, the seemingly flawless operation collapsed just as swiftly as it began. The deceit was uncovered when investors discovered the company's Dadar office unexpectedly shuttered, leaving them stranded with significant losses and no immediate access to their invested funds. The implicated directors, Imran Javed, Sarvesh Surve, and Olena Styne, are all listed at the company's registered office in Girgaon. The police investigation is underway, focusing on tracing the whereabouts of the company’s owner who is believed to be abroad, and identifying accomplices and suppliers involved in the fraudulent operation.
The situation is further complicated by counter-claims made by Torres Jewellers on its website. The company accuses its CEO, Taufik Riaz, and Chartered Accountant Abhishek Gupta, of orchestrating a burglary and theft at one of its jewelry shops. The company provides what it claims is CCTV footage as evidence of the alleged crime, portraying the incident as a conspiracy against the business itself. This counter-narrative, while attempting to deflect blame, has further muddied the waters, raising questions about the true nature of the events leading to the collapse of the investment scheme. The accusations leveled against Riaz and Gupta add another layer of complexity to an already convoluted investigation. The police are currently in the process of verifying all claims made by both parties, carefully examining the evidence presented by Torres Jewellers and cross-referencing it with the statements and testimonies provided by the investors. This investigation is expected to take considerable time given the significant amount of funds involved and the complex web of individuals and transactions to be unraveled.
The fallout from this incident extends beyond the immediate financial losses suffered by investors. It raises critical questions about regulatory oversight and the need for stricter measures to prevent similar schemes from targeting unsuspecting individuals in the future. The ease with which Torres Jewellers was able to operate for months, promising unrealistic returns and garnering widespread investment, underscores the need for increased vigilance and enhanced regulatory frameworks to protect investors from fraudulent investment practices. The case serves as a stark reminder that exceptionally high returns usually come with exceptionally high risks. Investors are urged to exercise caution, conduct thorough due diligence, and verify the legitimacy of any investment opportunity before committing any funds. The police investigation is ongoing, and authorities are working to recover the misappropriated funds and bring those responsible to justice. The outcome of this case will have significant implications for future investment regulations and investor protection measures in India.
Source: Mumbai Torres Jewellers fraud: How a vegetable vendor exposed ₹13.5 crore scam in Dadar