What Happened?
In early 2025, Mumbai was rocked by one of the most significant investment frauds in its history: the Torres Jewellery scam. With over 125,000 investors reportedly deceived and losses estimated to surpass ₹1,000 crore, the incident sent shockwaves through India's financial and law enforcement sectors. The alleged masterminds, believed to be foreign nationals, fled the country, leaving countless investors in dire financial straits. This article delves into the entire saga, tracing its rapid ascent and catastrophic downfall, while examining its repercussions and the valuable lessons it imparts.
The Ascent of Torres Jewellery
Torres Jewellery burst onto the scene in early 2024, making bold promises and employing aggressive marketing tactics. The company swiftly expanded throughout Mumbai, establishing numerous branches in locations such as Grant Road, Navi Mumbai, Kalyan, and Mira Road. Unlike conventional jewelry retailers, Torres Jewellery branded itself as an investment firm, offering astonishing returns on gold, silver, and moissanite stones. This innovative strategy captured the attention of many, particularly middle-class investors eager for high-yield opportunities.
What Made Torres Jewellery So Enticing?
The company’s main allure lay in its enticing investment schemes, which promised returns that were nearly unimaginable in legitimate financial markets.
Investors were presented with:
Gold Investment Plan – 48%
annual returns Silver Investment Plan – 96%
annual returns Moissanite Investment Plan – 520% annual returns
Moreover, those who invested ₹1 lakh or more received a pendant adorned with a moissanite stone, falsely touted as a valuable asset. The company’s meticulously crafted scheme convinced thousands that they were seizing a once-in-a-lifetime chance.
The Initial Warning Signs
At first, Torres Jewellery lived up to its commitments, providing impressive returns to its early backers, which fostered a wave of trust. This positive buzz encouraged a flood of new investors eager to join in. However, by December 2024, the first signs of trouble emerged. The company abruptly halted payouts, claiming it was facing temporary liquidity challenges. By early January 2025, Torres Jewellery locations throughout Mumbai were closed. Helplines went silent, and employees vanished without a trace. Frustrated investors gathered outside the company’s offices in Dadar and Grant Road, demanding their money back. As silence reigned, panic began to escalate. The Investigation Unfolds The Economic Offences Wing (EOW) of the Mumbai Police stepped in to investigate after being inundated with complaints.
The preliminary findings were alarming
The moissanite stones given as promotional gifts were counterfeit and held no real value. The gold and silver investment schemes were unregistered and illegal. Torres Jewellery lacked any genuine assets to support its promised returns. Further inquiries revealed that the company’s founders, John Carter and Victoria Kowalenko, both from Ukraine, had fled the country before the scandal broke. Several key figures, including a Russian woman named Valentina Ganesh Kumar and an Uzbek national named Tazagul Karaxanovna Xasatova, were apprehended.
Modus Operandi: How Torres Jewellery Orchestrated the Fraud
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Establishing Credibility Through Initial Successes
Torres Jewellery initially provided returns to its early investors, creating a community of supporters who endorsed the scheme. This tactic, often seen in Ponzi schemes, significantly boosted investor confidence.
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Manipulating Human Behavior
By promising unrealistically high returns, Torres Jewellery tapped into people's aspirations for quick wealth. Investors, rather than questioning the sustainability of such offers, were blinded by greed and the fear of missing out (FOMO).
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Illusory Credibility
The firm secured office spaces in prestigious locations, employed impeccably dressed executives, and promoted itself through newspapers and social media to create an image of trustworthiness.
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Intentional Obfuscation
Many investors found themselves confused by the workings of moissanite and the touted gold investments. Torres Jewellery employed intricate terminology to lend an air of sophistication and authenticity to their scheme.
Voices of the Victims:
The Emotional Toll of the Fraud The scam affected a diverse group of investors, including small traders, homemakers, and retirees. Numerous individuals poured their life savings into the venture, anticipating safe and profitable returns.
Here are some of their stories: a retired educator, invested ₹15 lakhs in hopes of securing his future after retirement. “A friend who received payments early convinced me. Now, I’m left with nothing.” A homemaker, invested ₹5 lakhs for her daughter’s wedding. “I was saving for a special day, and now I’m at a loss for how we’ll cope.” For many, the financial loss extended beyond money; it eroded their faith in investments and financial institutions. Law Enforcement's Response Following the arrest of several mid-level managers, the Mumbai Police enlisted Interpol’s assistance to locate Carter and Kowalenko. Assets totaling ₹35 crore were retrieved from the company’s Indian bank accounts. Luxury vehicles and office equipment were seized and auctioned to reimburse investors. International agencies were alerted to prevent the accused from launching similar schemes overseas.
Could This Have Been Averted?
The Torres Jewellery fraud serves as a stark reminder of the risks associated with unregulated investment schemes. Experts argue that enhanced financial regulations and increased public awareness could mitigate the occurrence of such scams. Ignored
Warning Signs
Unrealistic Returns: No legitimate investment can guarantee a 520% return. Unregistered Company: Torres Jewellery operated outside the purview of SEBI regulations.
Lack of Transparency: The company failed to reveal how it generated profits.
The Broader Perspective: Are We Gaining Insights from These Frauds?
The Torres Jewellery incident is just one of many. India has seen a series of notorious Ponzi schemes, including:
Saradha Scam (2013) – A staggering ₹2,500 crore fraud that affected Bengal and Odisha.
Pearl Group Scam (2014) – A massive ₹45,000 crore fraudulent real estate operation.
Bike Bot Scam (2019) – A ₹15,000 crore scam linked to a bogus ride-sharing service.
Despite these alarming occurrences, financial literacy remains alarmingly low, leaving many individuals exposed to such scams.
Final Thoughts
The Torres Jewellery fraud serves as a crucial reminder for both investors and regulatory bodies. While efforts are underway to hold the perpetrators accountable, the most effective shield against these scams is heightened investor awareness. Before making any investment, one should consider: Is this too good to be true? If the answer is affirmative, it’s likely a scam. As investigations progress, there is hope for justice and potential restitution. Yet, for countless investors, the harm has already been inflicted, marking yet another harsh lesson in the importance of financial vigilance.
With inputs from agencies
Image Source: Multiple agencies
*The views expressed are personal to the author and do not reflect the platform's opinion of the same.
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Author's profile:
Arhan Ali is a sharp observer of economic and political currents, known for blending keen analysis with a dash of wit. Whether dissecting global trade wars or taking a playful jab at social absurdities, his writing strikes the perfect balance between intellect and irreverence.
