Explained: The Torres investment scam in Mumbai, how it operated

What Ponzi schemes were floated to lure victims?

Company executives would conduct seminars in lavish settings and attract investors. They mainly floated four schemes: invest in gold or silver for a weekly interest of 2% and 3%, respectively, in Moissanite stones in silver for 4% interest, and only in Moissanite stones for an interest of 5-6%.

They gradually increased the interest rate towards the end of the year to extract more money from the investors. People were encouraged to invest in cash to get a weekly interest of 11.5% and bringing in new investors would earn existing investors a referral bonus. The EOW said that investors were given expansive incentives like cars, apartments, iPhones, jewellery, etc.

Mumbai police said the accused company had no permission from the RBI or any other government body to accept deposits for running investment schemes.

How did the fraud surface?

Investors started making inquiries when Torres defaulted in paying interest. The company claimed that technical issues with the company’s system were responsible. Later, on the morning of January 6, some investors received information from the employees that the company had shut down.

One vegetable vendor named Pradipkumar Vaishya was among the first to rush to the showroom in Dadar. He informed others, and by the afternoon, hundreds of investors gathered outside Torres. Vaishya, who lost Rs 4.55 crore worth of investments made by his relatives and friends, filed an FIR.

What action has the police taken?

Four FIRs have been filed in the case. The police arrested the company’s general manager Taniya Xasatova, alias Tazagul Karaxanovna Xasatova, director Sarvesh Ashok Surve, and store in-charge Valentina Ganesh Kumar. Xasatova is an Uzbekistan national, while Valentina is a Russian-origin Overseas Citizen of India, married to an Indian.

CEO Tausif Reyaz, alias John Carter, and director Victoria Kovalenko are wanted in the case and the police have issued Look Out Circulars against them. Besides this, another Ukrainian named Olena Stoian is also a wanted accused, suspected to be the mastermind accused of similarly pulling off another fraud in Turkey.

Who are the ‘whistleblowers’?

The wanted CEO, Reyaz, has claimed to be the whistleblower. He claimed that he and CA Abhishek Gupta, along with the director Sarvesh Surve, acted as whistleblowers after three months of collecting evidence of the alleged financial irregularities in the company. They said they submitted a 154-page report to the Mumbai police via emails and personal meetings with EOW officials on December 30, 2024, and January 2, 3 and 4, 2025.

They also claimed to have sent their complaints to the CBI, ED, Income Tax and other government offices. Surve is already arrested and in police custody, while Reyaz has not come forward, claiming he has received threats. Gupta is currently under police protection.

Torres, on the other hand, has blamed Reyaz and Gupta, claiming they induced a group of employees to commit the fraud. Torres also said they robbed the company’s stores and shared CCTV footage to back their claims. Reyaz countered that the footage was generated using AI tools. The police, however, have said that no company officials have approached them with any complaint regarding the allegations.

What is the police investigating now?

Police were reportedly aware of alleged irregularities at the Torres company before December, but seemingly did not act on them. The Shivaji Park police summoned Torres officials in June, seeking an explanation, while the Navi Mumbai police in October served notices to the Sanpada branch over their business practices.

However, in both cases, police officers did not pursue the matter further. Torres claimed that they provided an explanation to the police after receiving notices. A senior officer of the Mumbai police has ordered an inquiry into the alleged negligence on  the police’s part.

Mumbai police EOW and police units of Navi Mumbai, Thane, and Mira Road are now scanning through Torres’ investment schemes systems. Police are checking the money transactions and where the money went, to attempt its recovery and return to investors. They are checking if the money was sent abroad, as well as the whereabouts of the wanted people.