Mumbai-based Torres Jewellery is at the center of a major fraud scandal, with allegations of defrauding investors of approximately ₹13.48 crore through deceptive investment schemes. The company had promised lucrative returns to those investing in gold, silver, and moissanite stones, but has now left many investors facing heavy financial losses.
Fraudulent Investment Schemes and Promises
Torres Jewellery initially attracted investors by offering exceptionally high returns. Investors were promised annual returns of 48%, 96%, and 520%, respectively, on gold, silver, and moissanite investments. The company particularly focused on moissanite, offering weekly returns between 8% and 11%. These promises created a sense of confidence and trust among investors, with many pouring in large sums of money expecting guaranteed high returns.
Building Trust and Investor Defaults
For a period, Torres Jewellery appeared to deliver on its promises, which helped establish the company's reputation and attract even more investors. However, this trust was shattered on December 30, 2024, when the company abruptly stopped making payments to its investors, resulting in widespread panic.
Company’s Deflection and Allegations Against Executives
In a surprising move, Torres Jewellery issued a statement blaming its CEO, Taufik Riaz, and Chartered Accountant Abhishek Gupta for the company’s financial troubles. The statement accused the two men of orchestrating a burglary at one of the company’s jewellery shops, calling it an act of theft and vandalism that has crippled the business. The company has yet to provide clarity on the matter as investigations continue.
Legal Actions and Ongoing Investigation
The situation has sparked significant legal actions. Police have filed cases against the company’s directors and executives, accusing them of cheating investors. The Economic Offences Wing (EOW) has stepped in to investigate the financial irregularities and trace the accused. Authorities are now focused on uncovering the full extent of the fraud and working to recover the defrauded amounts.
Investors’ Losses and Fallout
Investors have reported substantial financial losses, with amounts ranging from ₹20,000 to as much as ₹50 lakh for some individuals. A significant number of investors have collectively lost crores of rupees in what seems to have been a well-orchestrated scam. Many are now left in financial distress, hoping that authorities will be able to hold the accused accountable and recover their investments.
As the investigation unfolds, authorities remain focused on tracing the accused and ensuring that justice is served. Meanwhile, the impact on investors continues to grow, raising questions about the regulation of such investment schemes and the protection of consumer interests in the financial markets.
The case is expected to develop further as the Economic Offences Wing deepens its probe into the Torres Jewellery fraud.
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