Mumbai-based jewellery chain Torres faces allegations of running a Ponzi scheme, leaving thousands of investors in financial turmoil.
Allegations and Scheme Details
Torres, a jewellery chain operating several stores in Mumbai, is facing allegations of defrauding investors through a Ponzi scheme. The scheme involved offering moissanite stones and gems with a promised 11% weekly cashback over one year, amounting to an advertised annual return of 400%.
Under the scheme, investors were required to contribute a minimum of ₹1 lakh and were provided with a moissanite pendant claimed to be worth ₹10,000. Customers later discovered these stones were counterfeit. While initial payouts were made, disbursements reportedly stopped two months ago, leading to growing concerns among participants.
On 6 January, investors gathered outside Torres stores in Dadar and Sanpada, alarmed to find them closed without prior notice.
Police Investigation and Legal Actions
Aggrieved investors filed a complaint at the Shivaji Park police station, which led to the registration of an FIR against Platinum Hern Private Limited, the parent company of Torres Jewellery. Those named in the FIR include the company’s directors, CEO Tausif Reyaz, a general manager, and a store in-charge.
The investors are demanding the return of their principal amounts, claiming they invested in the scheme based on the brand’s reputation.
Company Response
In a social media statement, Torres Jewellery attributed the scheme to CEO Tausif Reyaz and other staff members, accusing them of misappropriating company funds and vandalising stores. The statement claimed that these actions were carried out over several months without the company’s knowledge.
Implications for Jewellers and the Industry
Trust is critical in the jewellery business, and incidents like this can impact consumer confidence. Jewellers must prioritise transparency and governance to protect their reputation and maintain customer trust.
This situation also underscores the need for due diligence by investors, especially in schemes promising high returns. Additionally, it highlights the importance of industry oversight to protect the reputation of legitimate jewellers and prevent fraudulent schemes from tarnishing the sector’s credibility.
