Social worker alerted police, ED about scam 2 months ago

Dharavi social worker Shashikant Kawale alerted authorities about a Ponzi scheme but claims no action was taken despite his warnings.

MUMBAI: A Dharavi-based social worker, Shashikant Kawale, had alerted the Mumbai police and even the Enforcement Directorate (ED) about the alleged fraud in November last year, but claimed that no action was taken though the police called him and the Economic Offences Wing even recorded his statement in mid-December.

Social worker alerted police, ED about scam 2 months ago

Kawale wrote letters to various agencies on November 16, 2024, copies of which are with Hindustan Times. The activist, who claims to have busted such Ponzi schemes earlier, had raised questions about the scheme and the unrealistic returns the jewellery stores were offering.

“While public and private banks take seven years to double deposits, this company was tripling them in just 13 months,” he said. ““Not just that, they were also giving gifts like cars and iPhones to investors through lucky draws. They were selling products at inflated rates, offering a huge cashback on stones, silver jewellery and gold jewellery. However, they told people that if they invested in stones, the returns were more.”

Kawale said the company spent ₹20 to ₹25 crore just on its showroom interiors to attract customers. “I wrote to all the senior police inspectors in whose jurisdiction Torres had a store, but none entertained me,” he said. “Shivaji Park police station, under whose jurisdiction the flagship store in Dadar fell, kept calling me but used to ask me to wait for several hours.”

The activist said that he finally stopped going to the police station. “I was also called by the EOW to Yellow Gate Police Station on December 16,” he said. “I gave them all the information but nothing happened.”

Responding to Kawale’s claim, an EOW official said they had started working on his complaint and gathered details from the Registrar of Companies and other agencies. “However, as he was not a direct investor, we faced difficulties,” he said. “The racket was busted when there was a commotion in the Dadar store.”

An investor at the Dadar store said the accused collected huge amounts before and during Christmas, as they had set the dates to flee from the country. “They had started offering exorbitant returns of 11 per cent per week on investments in Moissanite stones,” he said.