Torres Scam: Accused Spent Rs 25 Crore on Stores, Diamonds, and Investor Payouts

Mumbai: Torres investment fraud accused initially spent Rs 25 crore for setting up stores, purchasing diamonds and giving returns to investors, the investigation by Mumbai Police's Economic Offences Wing (EOW) showed.

EOW officials said the accused had sent the money collected from investors abroad illegally.

An official said the arrested accused are not cooperating in the investigation which focuses on the source of money in the initial stage and suspected foreign links.

The EOW said 11 accused wanted for the fraud, involving ponzi schemes operated by a private firm owning 'Torres' jewellery brand, are absconding and Look Out Circulars (LOCs) have been issued against them. The accused include foreign nationals.

The EOW has carried out raids in Colaba, Dadar and Dombivali and confiscated important documents, investment papers as well as cash into the alleged scam wherein the jewellery firm owning Torres brand is accused of cheating investors of crores through a combination of ponzi and multi-level marketing schemes.

The probe shows that the accused spent Rs 25 crore initially to set up stores, buy furniture and diamonds, and pay returns on investments, officials said.

Another official said the EOW on Monday conducted searches at the Torres showroom in Kandivali, Mumbai.

He said the arrested accused, Tania alias Tazagul Karaxanovna Xasatova (52), a Uzbek national, was booked in a fake passport case by Sahar police in Mumbai in the past.

The EOW so far recovered properties worth Rs 17.40 crore from the accused persons including cash, gold and silver jewellery, and diamonds.

Hundreds of people who had invested in the Torres investment schemes are coming forward to lodge complaints.

A total of 1,916 investors have lodged complaints of Rs 38.96 crore fraud so far, the EOW official said, adding that the scam looks bigger than initial assessment.

A special court in Mumbai on Monday extended till January 18 the police custody of three accused with the prosecution claiming the scam, now pegged at Rs 38 crore, was serious and caused loss to the Indian economy.

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