Mumbai: ED registers money laundering case in Torres Ponzi case

Mumbai, Jan 14 (PTI) The Enforcement Directorate (ED) has registered a money laundering case to probe the Torres investment "fraud" of about Rs 38 crore where a number of investors have been allegedly duped, officials said on Tuesday.

The federal agency has taken cognisance of a Mumbai Police (Shivaji Park police station) FIR to book a case under the criminal sections of the Prevention of Money Laundering Act (PMLA), the officials said. The case was later transferred to the Economic Offences Wing (EOW) of the Mumbai Police.

According to the police, 1,916 investors have complained about being cheated so far in Ponzi schemes operated by a private firm owning the 'Torres' jewellery brand.

The scam came to light when hundreds of investors gathered at the jewellery brand's store situated at Torres Vastu Centre building in Dadar (West) early this month as the company stopped paying sums promised to them.

The police had arrested three accused -- Tazagul Xasatov, a Uzbekistan national; Valentina Ganesh Kumar, a Russian national; and Sarvesh Surve -- all senior executives of the firm in this case till now.

The police, while seeking the accused's further remand, said at present the magnitude of the scam has reached Rs 38 crore and the amount is expected to rise further as investigations move forward.

The ED is expected to question them and also gather additional "evidence" to go into the depth of the alleged Ponzi scam. Sources said it may summon some persons for questioning too.

The police have also issued Look Out Circulars (LOCs) against 11 more people, including foreign nationals who are stated to be absconding.

Investigators have said the promoters of Torres jewellery brand had promised cars, flats, gift cards and hampers to attract investors.

Both the police and the ED are probing to find the mastermind of the fraud, the person who started the jewellery company (Platinum Hern) that owns the Torres brand and from where the accused got the initial fund for the firm, the sources said. PTI NES KSS KSS

Source: PTI