Torres scam: Shivaji Park police did nothing despite knowing about it in June

Investors outside Shivaji Park police station on Tuesday. Pic/Ashish Raje

The Rs 1,000-crore Torres scam could have been prevented if Mumbai police had acted on early warnings flagged by Shivaji Park police station. Despite suspicious activities being identified in June 2024, followed by notices from Navi Mumbai Police's Economic Offences Wing (EOW) in October, no action was taken, allowing the fraud to escalate and dupe thousands over six months.

Assistant Police Inspector (API) Vinay Mane of Shivaji Park police station confirmed to mid-day that he issued a notice to Torres company directors on June 29 after observing suspicious activities during routine patrolling. "I informed my superiors and was asked to issue a notice. I have no idea what happened after that," Mane said.

Posters uploaded on social media by Torres announcing cash prize

The Navi Mumbai police also issued a notice to Torres on October 24, followed by another from the Income Tax Department on November 14. Copies of these notices were submitted by Tausif Reyaz, a wanted accused and self-proclaimed whistleblower, in his complaint to multiple agencies, including the Mumbai police commissioner and the CBI. Reyaz alleged the inaction enabled the scam to grow unchecked, with several foreign nationals involved fleeing the country.

"It has come to our notice that your company attracts customers by promising high returns on investments in jewellery made from Moissanite (American Diamond), claiming they yield better profits than traditional jewellery," read the October 24 notice from Navi Mumbai police's EOW. The notice asked the company to present business documents by October 28 at the commissioner's office.

Sarvesh Surve the company director arrested by the cops. Pics/Ashish Raje

The scam came to light when angry investors visited Torres' Dadar office earlier this week, only to find its directors had fled. Shivaji Park police have since arrested three suspects, including two foreign nationals, and the case has been transferred to the EOW, which suspects the fraud exceeds Rs 1,000 crore.

How scam started

Reyaz claims the scam began in February 2023, orchestrated by Ukrainian nationals Oleksandra Tverdokhlib, Oleksandr Borovyk, Olena Staion, and Oleksandr Zapichenko, who partnered with a consultant named Armen. They launched a company, Platinum Hern Private Limited, using Indian directors as fronts while they operated as silent partners.

The first Torres showroom opened in February 2024, attracting customers through an MLM-style cashback scheme promising weekly returns and referral bonuses. Daily seminars marketed the scheme, expanding the customer base. Reyaz alleges the group smuggled gold and silver without documentation, sold overpriced jewellery, and transferred Rs 200 crore abroad using cryptocurrency.

Pradeep Vaishya, investor, shows diamond given by the company

Reyaz also accused the group of coercing him and his colleague into signing fraudulent loan documents under threats of violence. He claims his photograph was falsely circulated on social media, identifying him as the company's CEO to mislead authorities and protect the masterminds. Efforts to reach DCP Ganesh Gawade of Zone 5 for comments remained unanswered at the time of press.

Search conducted

The Economic Offences Wing (EOW) of the Mumbai police, investigating the Torres scam, conducted searches at the company's premises on Thursday. During the operation, they seized various investment documents, cash, promotional pamphlets, and stones from the store.

Investors outside Shivaji Park police station on Thursday

"This appears to be a Ponzi scheme combined with a multilevel marketing scam that lured people with lucrative schemes. We are doing our best to protect the interests of the investors. A dedicated cell has been set up at the Shivaji Park police station where investors can register their complaints," said Sangramsinh Nishandar, DCP, EOW.

Torres, on their official Instagram page, claimed that they had provided all necessary details about the company, including its operations and business activities, after receiving the notice from the Shivaji Park police station in July following the notice from the police station in June 2024.

Torres blames CEO and CA

In a press release, Torres, accused Reyaz, alias John, and Gupta of damaging the company's reputation. The statement alleged that Gupta forced the company to pay Rs 25 lakh and later Rs 40 lakh, claiming it was to settle the matter with the IT Department.

Investors gathered outside the Torres Jewellery store in Dadar

"Gupta, who was handling the IT inquiry, used the name of Deputy Commissioner Neeraj and extorted money from us. Then, he, John, and Sarvesh Surve turned around and reported Torres to the same officer, pretending to be whistleblowers," the press note claimed. Torres further alleged that Gupta and Reyaz began demanding large sums of money after October 24 to "settle" issues with the authorities.

The company also dismissed claims by Gupta, John, and Surve that they are whistleblowers. "In June last year, we noticed suspicious behaviour by the company and requested them to produce their documents. However, the company never disclosed anything about their fraudulent schemes. An ACP-level inquiry has now been initiated to investigate what actions were taken," a DCP rank officer told mid-day.

- Apoorva Agashe