Bombay HC remarks on slow-paced investigation, orders protection for whistleblower in Torres scam case  

The Bombay High Court on Wednesday (January 15, 2024) came down heavily on the Mumbai Police over the slow-paced investigation into the alleged Torres investment scam, and ordered immediate interim police protection for the Chartered Accountant (CA) who is the whistleblower in the case.  

A Division Bench of Justices Revati Mohite-Dere and Neela Gokhale questioned the Economic Offences Wing (EOW), the investigating agency. “We are shocked at the manner in which the investigation is progressing. Why didn’t you [the police] check with immigration authorities if they (the accused) have left the country or are in any other part of India? We are not happy with the investigation. Let us not mince words. You were informed in June and October last year [2024]. You are taking no steps against the persons you should be going after. Somewhere, the police are responsible. Despite getting a wealth of information, including their Telegram IDs, PAN cards, Aadhaar cards, and passport details, why didn’t you (the police) check if they (the accused) have left the shores or not?” the court said. 

“Have you (the police) collected CCTV footage from the hotel where they (the accused) were staying? Do we have to tell you everything? We are not expected to monitor cases like this but where you fail, we come in. Is this the manner and pace of a specialised agency [the EOW]? We expect promptness; otherwise, the accused will flee. Obtain CCTV footage from the company’s offices, hotels where the accused stayed,” the Bench added.

The High Court directed the EOW to store the entrance and exit CCTV footage of the EOW’s Mumbai office from December 30, 2024 to January 14, 2025.  

The Bench was hearing the petition of CA Abhishek Mahendra Gupta (31), who claims to be the whistleblower in the case.  

The petitioner has said that, while auditing Platinum Hern Private Limited, parent firm of the Torres brand, he came to know of fraud, issues of non-compliance, and irregularities, which were reported to the company’s director in accordance with his professional obligations. The petitioner has said he is a vulnerable witness in the case.  

The petition said that two of the company’s directors, Sarvesh Surve and Taufiq Riaz (alias John Carter), and an employee, Laxmi Yadav, had tipped off the Mumbai Police about the alleged scam in December 2024, and the police had been aware of the scam since June 2024, but no action had been taken.   

Representing Mr. Gupta, advocate Ranjit Sangle told the court that his client had received threat messages on messaging applications, including Messenger and Telegram, on his mobile phone. He also claimed that his photos had been falsely circulated, identifying him as an accused wanted in the case for misleading people.  

Additional Public Prosecutor Prajakta Shinde told the Bench that Mumbai Police were awaiting a report to confirm whether Mr. Gupta was facing any threat as he claimed.  

“Till then, we will direct you (the police) to grant police protection. Someone is exposing your fault. You are lax in your actions. If someone is giving you all this information and because you cannot find somebody, don’t make someone a scapegoat. You must ensure prompt and proper investigation,” the Bench ordered.  

The Torres jewellery brand of Platinum Hern Pvt. Ltd. allegedly floated multiple schemes offering weekly interest rates and about 500% annual interest on investments. Investors in this Ponzi scheme were allegedly lured with incentives and expensive gifts. 

The FIR registered on January 6, 2025 says over 1.25 lakh people had invested money, and the defrauded amount could go up to ₹1,000 crore. The Torres brand is accused of cheating investors through a combination of Ponzi and multi-level marketing schemes, promising very high returns but eventually defaulting on payout. 

So far, the EOW has arrested three directors, including Sarvesh Surve, Tania Kastova, and Valentina Kumar. Ukrainian nationals John Carter and Victoria Kovalenko remain at large. The EOW said that 11 accused, most of them foreign nationals, were absconding, and Look-Out Circulars had been issued on January 10, 2025, four days after the FIR was registered. 

Mr. Shinde informed the court that the EOW had taken steps to recover the amounts from the accused, and ₹25 crore had been recovered so far. “That is not even 1% of the entire scam amount,” the Bench responded. 

Posting the matter for further hearing on January 22, 2025, the Bench summoned the Assistant Commissioner of Police (EOW) to remain present for the next hearing via video conference.