Tausif Riyaz, the CEO of Platinum Hern, the company behind the controversial Torres Jewellery brand, was arrested by Mumbai Police’s Economic Offences Wing (EOW) on Sunday in connection with a multi-crore Torres Ponzi scam. Riyaz was caught at a hotel in Lonavala after being on the run for several weeks after the scam came to light.
Riyaz, who was the fifth individual to be arrested in the case, was presented before a Mumbai court, which remanded him to police custody until February 3. The arrest comes amid an ongoing investigation into Torres Jewellery’s fraudulent investment scheme, which has left over 3,700 investors with substantial financial losses.
The investigation
The Torres Ponzi scam came to light in December 2024 when hundreds of investors gathered at the Torres Vastu Centre in Dadar, Mumbai, after the company stopped making promised payments. Investors, who had been encouraged to invest in gold, silver, and moissanite jewellery, were lured by promises of high returns, including cars, flats, and gift hampers. However, when the company failed to honor these promises, it sparked widespread protests and led to investigations by law enforcement agencies.
Riyaz had claimed he was the one who tipped off the Enforcement Directorate (ED) about the Torres Ponzi scheme, but despite these claims, he had been evading arrest for weeks. Authorities had issued a lookout circular (LOC) against him, and he had reportedly traveled from Patna to Mumbai before being tracked down in Lonavala based on a tip-off.
The Enforcement Directorate (ED) on Friday also froze more than ₹21 crore in bank deposits as part of their ongoing investigation into the Torres fraud. The ED conducted raids at 10 locations across Mumbai and Jaipur on January 23, targeting properties linked to the promoters of Torres Jewellery. Investigators have indicated that the Ponzi scheme involved a complex network of financial manipulation and money laundering.
What is Torres Ponzi Scam?
The Torres Ponzi scam, which involved fraudulent investment tactics, has so far led to a reported ₹57 crore in losses. According to police, the jewellery brand used multi-level marketing tactics and deceptive advertising to attract investors. The company’s promoters promised lucrative returns but failed to deliver, resulting in widespread financial ruin for those involved.
The FIR alleged that the company and its promoters “lured” investors with promises of high returns ranging from 2-9 per cent weekly on investments in gold, silver, diamond jewellery, and gemstones.
The schemes also offered bonuses for recruiting new investors, creating a referral system to “attract” more victims, the ED said.
The company marketed synthetic moissanite stones as high-value investments comparable to diamonds, according to the agency.
These stones were sold at inflated prices while “misleading” investors about their future appreciation, it said.
According to the ED, the company organised seminars, advertised on social media and conducted “unlicensed” lucky draws to entice customers with luxury rewards such ascars and expensive mobile phones.
As the investigation continues, authorities are focusing on tracking down additional suspects and uncovering the full extent of the scam. The case has garnered significant attention, and further arrests are expected in the coming weeks.
