Torres Jewellery Ponzi Scheme Dupes Thousands: Mumbai Investors Left in Despair
A jewellery chain with six stores across Mumbai and surrounding areas has come under fire for allegedly duping thousands of investors through a fraudulent Ponzi scheme. Torres Jewellery, once promising high returns on investments, now finds itself at the center of a storm involving allegations of cheating, internal mismanagement, and financial ruin for many of its lower-middle-class investors.
Fraudulent Bonus Scheme
Torres Jewellery began operations in February last year, offering gemstone jewellery alongside an enticing bonus scheme. Customers were lured with promises of lucrative returns: an investment of ₹1 lakh came with a pendant featuring a moissanite stone worth ₹10,000. Investors were assured weekly payouts with interest rates starting at 6% and eventually climbing to 11%.
However, the stones provided under the scheme were later revealed to be fake. While some investors received periodic payouts over the past year, payments ceased abruptly two months ago, raising alarm among participants.
Bumper Draw Leads to Chaos
To further attract investments, Torres recently announced via a YouTube video an increased interest rate of 11% for payments made before January 5, with a 0.5% bonus for cash payments. The move generated a surge of last-minute investments. On January 6, however, the stores were shut, leaving investors to discover they had been scammed.
Victims of the Scam
The majority of the investors were from the lower-middle class, including vegetable vendors and small traders, many of whom poured their life savings into the scheme. Investments ranged from a few thousand rupees to several crores. Seven complainants collectively reported losses exceeding ₹13 crore.
One investor questioned the government’s oversight. Another vowed not to leave Torres’ Dadar office until her money was returned.
Allegations of Internal Coup
As investor anger grew, Torres’ official YouTube account released a video accusing its CEO Tausif Reyaz and Chief Analyst Abhishek Gupta of orchestrating an internal coup. The company alleged that the duo, along with accomplices, vandalized stoes and stole money. CCTV footage reportedly captured individuals breaking jewellery cases and opening safes, which Torres claims to have submitted as evidence to the police.
The video alleged that the accused had siphoned company funds for months through fraudulent schemes. Facing imminent legal action, they allegedly turned to robbery and vandalism to cover their tracks.
Legal and Police Action
A police case has been registered against Torres Jewellery’s holding firm, Platinum Hern Private Limited, along with its directors, CEO, general manager, and store in-charge. The charges include cheating and criminal conspiracy.
Investor Outrage and Questions for Authorities
The scam has left thousands questioning the lack of government oversight in such schemes. Investors argue that the scheme’s official registrations lent it legitimacy, prompting them to trust it. Many are now calling for government intervention to recover their hard-earned money.
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