Hawala operator arrested in connection with multi-crore Torres ponzi scheme

EOW arrests hawala operator Alpesh Khara linked to Torres Jewellery's ponzi scheme, defrauding investors of crores; over ₹15 crore seized.

MUMBAI: The Economic Offences Wing (EOW) on Friday arrested a hawala operator from Charni Road in connection with the multi-crore Torres Jewellery ponzi scheme, which has defrauded thousands of investors out of crores of rupees. The scheme, masterminded by Ukrainian nationals, reportedly used the jewellery stores as a front for laundering money, with funds being transferred to various locations.

Hawala operator arrested in connection with multi-crore Torres ponzi scheme

Abhishek Gupta, a chartered accountant who audited the accounts of Platinum Hern Private Limited, the company behind the Torres brand, has alleged that the accused transferred at least ₹200 crores out of India in the past three months. Gupta, who claims to be a whistleblower, had previously alerted investigating agencies about the fraud.

The arrested individual, Alpesh Khara, 54, is accused of facilitating the illicit transfers. “Khara is a hawala operator who has been uncooperative during questioning. He even destroyed records of his transactions with the Ukrainian nationals,” said a police officer. “Other accused individuals have identified Khara as the person who handled the transactions to move money to multiple locations.” Khara has been remanded in police custody until January 21.

A hawala operator, also known as a hawaladar, is a person who facilitates the transfer of money through an informal system known as hawala. Hawala is an ancient method of transferring money that operates outside of traditional banking channels

Money laundering allegations

According to Gupta’s petition to the Bombay High Court, the accused laundered large sums of money, initially bringing cash into India via hawala channels to establish their business. Later, they transferred defrauded amounts out of the country, including ₹200 crore in the last three months through USDT (a cryptocurrency).

The EOW has seized cash worth ₹6.74 crore and jewellery valued at ₹4.83 crore, bringing the total seizure to ₹15.84 crore. “We have received 5,289 complaints so far, amounting to losses of approximately ₹84 crore. More victims are still coming forward to report their losses,” said an officer.

Lack of timely action alleged

Dharavi-based social worker Shashikant Kawale, who had raised concerns about Torres Jewellery’s operations in November 2024, has criticised the inaction of authorities. In letters to local police stations and the EOW, Kawale had warned of fraudulent activities before the main accused fled. “If timely action had been taken, the significant amounts collected during their Christmas campaign—offering 11% weekly returns instead of 6%—could have been saved,” he said. Kawale has now written to the Home Minister and Director General of Police demanding action against the officers who failed to intervene. He has threatened to escalate the matter to the Bombay High Court if no action is taken.

The scope of the fraud

The First Information Report (FIR) reveals that Torres Jewellery operated six stores across Mumbai and duped approximately 1.25 lakh investors with promises of 6% weekly returns on investments in lab-grown American diamonds. The police’s initial investigation indicates that the company operated without a valid Reserve Bank of India (RBI) licence and engaged in money-laundering activities, including the purchase of benami properties.