Torres is currently at the center of a major controversy. Allegations suggest that the company swindled 1.25 lakh investors out of Rs 1,000 crore through its six showrooms in Mumbai and nearby areas. One whistleblower claimed that Torres planned to expand to 400 more showrooms across India.
Advocate Vivek Tiwari, representing Torres’s Chartered Accountant Abhishekh Gupta, shared that Gupta learned from foreign associates about intentions to open stores in cities like Gujarat, Chennai, and Bengaluru. They opted not to hire celebrities for promotions, arguing that the savings could be diverted to investors.
However, Gupta raised concerns, stating that their plans did not align with Indian business laws, particularly regarding tax obligations. After conducting an audit, he highlighted several irregularities in a report sent to the management of Platinum Hern Pvt Ltd, the parent company of Torres.
Following this, Gupta was reportedly pressured during a meeting at the Lower Parel office. Tiwari mentioned that Gupta was offered Rs 5 crore to resolve these issues, but when he showed resistance, he received threats from the accused.
Worried for his safety, Gupta has sought police protection from the Bombay High Court, with Tiwari representing him.
Interestingly, Torres CEO Mohamed Reyaz also claims to be a whistleblower in this situation. He stated that he, Gupta, and another director, Sarvesh Surve, gathered evidence of financial wrongdoings over three months and submitted a comprehensive report to the Mumbai police.
Contrarily, Torres accused Reyaz and Gupta of orchestrating the fraud, alleging they encouraged employees to engage in illegal activities.
The Economic Offences Wing (EOW) of the Mumbai police confirmed they are investigating Gupta’s claims but have yet to find evidence of Torres’s expansion plans.
Gupta had shared his audit findings with Lakshmi Yadav, now in custody for her involvement with the scammers. Yadav had power of attorney to manage the company’s office rentals in the region and was reportedly paid Rs 5,000 for her work. She reached out to police commissioners in both Mumbai and Thane, seeking urgent help regarding the alleged scam.
Here’s how the situation developed: Torres, operated by Platinum Hern Pvt Ltd, introduced multiple schemes offering astonishing returns, with promises of around 500% annual interest. Initially, they paid investors regularly, but by late December, payments stopped.
On January 6, angry investors from Mumbai, Navi Mumbai, and Mira Road protested outside Torres’s showrooms when they failed to receive their interest payments. The Shivaji police then registered an FIR, noting the fraud involved Rs 13.48 crore from 66 investors, with the total fraud possibly reaching Rs 1,000 crore.
The case has led to several FIRs across different police stations, including Mira Bhayander and Navi Mumbai. So far, authorities have arrested key figures in the company, including the general manager, a director, and other associates involved in the operations.
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