Mumbai: The revelation of the ₹1,000 crore Torres Ponzi scheme has sparked outrage among investors, many of whom blame the inaction of police and tax authorities for the massive fraud. According to reports, Shivaji Park police summoned the directors in June 2024, Navi Mumbai police in October, and the Income Tax Department issued a summons in November. However, no significant action followed these summonses.
Serious Questions About Investigative Action arises that Why were no further steps taken after the summonses?, What were the findings of the police and tax authorities’ investigations?, Did the investigation agencies deliberately neglect the case?
Ignoring Clear Signs of Fraud : The business model of Torres was dubious from the start. While nationalized banks offer 7-8% interest on fixed deposits, Torres promised weekly returns of 4%, equivalent to 200% annually. Despite this financially unviable claim, no immediate action was taken by the authorities.
Torres claimed to be trading in diamonds while offering exceptionally high returns. However, fraudulent documents and manipulations were at the core of its operations. Investigative agencies reportedly had early indications of these practices but delayed taking decisive action.
The case has cast serious doubt on the efficiency of investigative agencies. As complaints from investors continue to pour in, the involvement of the Economic Offences Wing (EOW) and the Enforcement Directorate (ED) seems imminent.
A police official, speaking on condition of anonymity, revealed that as per the orders of the Senior Police Inspector, a letter was sent in June, 2024 summoning the manager of Torres for questioning. However, there is no clarity on whether the manager was actually interrogated following the summons.
