A massive financial fraud involving Torres Jewellery, a prominent jewellery chain, has left 1.25 lakh investors cheated out of over ₹1,000 crore. Operating six stores across Mumbai and nearby areas, the company allegedly ran a Ponzi scheme, luring investors with promises of high returns and referral bonuses.
How the Scheme Worked
Torres Jewellery, launched in February last year, sold gemstone jewellery while offering a lucrative “bonus scheme” to attract investments. Investors contributing ₹1 lakh received a moissanite pendant valued at ₹10,000, but were informed that the stones were fake and merely tokens of their investment.
The company promised weekly payouts with interest rates initially set at 7% and later increased to 11%. Customers were further enticed with referral bonuses and extra interest for cash payments. While initial payouts were made, the scheme collapsed around January 6, when all stores abruptly shut down, leaving investors stranded.
Who Was Targeted?
The victims included lower-middle-class individuals such as vegetable vendors, small traders, and daily wage earners. Many invested their life savings, lured by the promise of high returns. Investments ranged from a few thousand rupees to several crores.
What Went Wrong?
On January 5, Torres uploaded a video stating that investments made before that date would continue earning 11% interest, while later investments would see reduced returns. Just a day later, the stores were closed, sparking panic among investors.
Hundreds of duped investors gathered at the Torres Jewellery store in Dadar, demanding their money back. The situation worsened when the company attempted to shift the blame onto rogue employees and management, accusing them of running the fraudulent scheme and vandalizing the stores.
Key Accused and Arrests
Mumbai Police have registered a case against Platinum Hern Private Limited, the holding company of Torres Jewellery, and its top executives, including the CEO, general manager, and store in-charge.
Three individuals—Sarvesh Ashok Surve, Tanya Casatova, and Valentina Kumar—have been arrested. Meanwhile, two Ukrainian nationals, John Carter and Victoria Kowalenko, alleged masterminds of the scam, have fled the country. Lookout Circulars (LOCs) have been issued for their arrest.
Police Investigation and Next Steps
The Economic Offenses Wing (EOW) is investigating the case under the Maharashtra Protection of Depositors Act and various sections of the Bharatiya Nyaya Sanhita (BNS).
Torres Jewellery has claimed on its YouTube and Instagram accounts that it plans to resume operations and reinstate bonus payments. However, the affected investors remain skeptical, awaiting justice and the return of their hard-earned money.