Cops were aware of fraud but dragged their feet

The Torres Jewellery fraud has taken an unexpected turn, with the Economic Offences Wing (EOW) of the Mumbai police learning that the Shivaji Park police and Navi Mumbai police had suspected something was terribly amiss but didn't take appropriate action, months before the scam surfaced.

- Vinay Dalvi

MUMBAI: As a result, an estimated 1.25 lakh small investors were scammed of hundreds of crores of rupees since February 2024.

Police had issued notices to Torres's stores, seeking information about their business model but didn't pursue the investigation. The scam, involving fraudulent investment schemes, surfaced on January 6, when Torres shut its stores in and around Mumbai. Three senior executives of Torres's holding company, Platinum Hern Private Limited, have been arrested, while several others are at large. Among those arrested, one is an Uzbek national and another is Russian.

EOW officials investigating the case said the Shivaji Park police had written to Torres Jewellers in June 2024, asking them to explain their business model, while the Navi Mumbai police had sought similar information from the Sanpada store, in October last year. And it wasn't just the police. In November last year, the Income Tax department had issued a summons to Platinum Hern Private Limited, under Section 131(1A) of the Income Tax Act. This section empowers assessing officers to issue notices seeking information from taxpayers, even when no formal proceedings are pending. "The IT department had sought information on Torres's business model and their source of income," said a police officer with the EOW.