Torres Jewellers scam: Key accused in Rs 177 crore money laundering case arrested in Dubai

New Delhi, Aug 28 (AHN) The Enforcement Directorate (ED) has confirmed the arrest of wanted accused Sagar Mehta in connection with the Rs 177 crore money laundering case linked to the alleged Torres Jewellers Ponzi scheme in Dubai.

Mehta’s lawyer approached the court seeking withdrawal of the proclamation proceedings initiated against him at the ED’s request. The court was informed that Mehta had been arrested on Thursday by Dubai authorities following the execution of a Red Corner Notice issued at the request of the Indian agency.

Mehta is a key accused in the case and is alleged to have played a role in collecting and transferring the proceeds of the alleged fraud. The ED informed the special PMLA court that he had been arrested after remaining on the run for several months.

The court had earlier issued non-bailable warrants against Mehta and three Ukrainian nationals -- Olena Stoian, Oleksandr Zapichenko and Viktoria Kovalenko. According to investigators, Zapichenko and Stoian allegedly helped design the financial structure and money-laundering mechanisms of the scheme. They are also accused of arranging initial funds through illicit channels and facilitating the conversion of unaccounted money into apparently legitimate investments.

The Torres Jewellers case relates to allegations that the company operated a fraudulent investment scheme by marketing synthetic moissanite as precious gemstones and promising investors unusually high returns.

According to the prosecution, Platinum Hern Pvt Ltd (PHPL), which operated Torres Jewellers, allegedly attracted investors by offering lucrative returns and rewards. The company reportedly promised weekly returns of between 2 per cent and 9 per cent on investments in gold, silver, diamond jewellery and precious gemstones.

The ED has further alleged that investors were offered a 20 per cent “investment bonus” for bringing new participants into the scheme, creating a referral-based structure.

Investigators have alleged that the operation relied on misleading advertisements, attractive bonuses and unrealistic return promises to draw investors, characteristics commonly associated with Ponzi schemes.

The prosecution has alleged that Mehta was involved in the fraudulent operation but fled India on December 24, 2024. His arrest in Dubai is expected to be significant for the ongoing investigation into the alleged money-laundering network and the movement of funds linked to the case.