Mumbai: In a significant development in the multi-crore Torres scam, the Economic Offences Wing (EOW) of Mumbai Police has formally requested the Enforcement Directorate (ED) to unfreeze the bank accounts of Jaipur-based jewellers. This move is seen as a crucial step toward the liquidation of seized assets and the subsequent recovery of funds for affected investors.
Officials confirmed that the request pertains to accounts frozen earlier this year during the ED’s extensive raids in Mumbai and Jaipur. Key locations searched included the premises of Stellar Trading Company in Johri Bazar, Jaipur and Kalbadevi, Mumbai, as well as M/s Gemethyst in Kishanpole Bazar, Jaipur. These firms are said to have supplied synthetic gemstones and imitation jewellery connected to the scam.
A senior EOW officer, speaking on condition of anonymity, said, “The unfreezing of these accounts is essential to initiate the process of asset liquidation and the recovery of dues owed to investors. It is a key procedural step.”
As per official estimates, the EOW plans to liquidate assets valued at approximately Rs 1 crore 25 lakh, a figure certified by a government-approved valuer. The seized inventory primarily comprises moissanite stones and lab-created diamonds set in intricately crafted gold jewellery, most of which was confiscated from the Torres showroom in Mumbai.
Officials confirmed that the liquidation is aimed at facilitating partial recovery of funds for investors while advancing further legal proceedings.
The ED had earlier frozen the bank accounts of the Jaipur-based jewellers after flagging transactions believed to be proceeds of crime(PoC). Financial records indicate that between September 2021 and January 2025, M/s Platinum Hern Pvt Ltd, allegedly linked to Torres, procured moissanite and synthetic gemstones worth over Rs 20 crore from Stellar Trading Company. The company also obtained high-quality artificial gemstones, including moissanite and lab-created diamonds, from M/s Gemethyst. These synthetic stones were then allegedly repackaged and marketed as high-value luxury items, enticing investors to make substantial purchases.
Despite initial suspicions, sources in the financial probe agency revealed that the jewellery firms involved have provided sales invoices and inventory logs, commonly known as ‘laser books,’ which show that their goods were sold at prices ranging from Rs 330 to Rs 500, in line with market rates for synthetic gemstones. This evidence suggests that the jewellery firms were not directly implicated in the fraudulent activities.
Central agencies believe that the fraudulent activities originated within M/s Platinum Hern Pvt Ltd., which allegedly fabricated certificates of authenticity and resold imitation including moissanite stones as luxury gemstones. These items were sold at highly inflated prices with tags running into thousands, and in some cases, lakhs of rupees, misleading investors into believing they were purchasing rare and high-value gemstones.
Following the clearance of the jewellery firms’ role in the ongoing investigation, the EOW has formally requested the Enforcement Directorate (ED) to unfreeze the firms’ bank accounts. The EOW has proposed that the synthetic stones originally purchased from these firms be returned to facilitate recovery of investors’ funds.
Senior ED officials have confirmed that both agencies are working closely together on the matter. The unfreeze request is currently under active consideration, with the ED expected to approach the Adjudicating Authority (AA) once the formal chargesheet is filed, likely in the first week of May.
According to sources, in addition to the proposed recovery of Rs 1.25 crore through the liquidation of synthetic stones, the Economic Offences Wing has also sought the unfreezing of bank accounts held by the owner of a commercial property in Kandivali, which was leased to Torres for operating its showroom. The agency aims to recover an additional Rs 62 lakh representing the security deposit paid by Torres,which is suspected to have been generated through fraudulent means using investor funds. Officials have termed the unfreezing of this account a critical step in the recovery process to ensure that defrauded investors are appropriately compensated.
