A special Prevention of Money Laundering Act court in Mumbai has rejected a plea by the Economic Offences Wing seeking release of properties worth ₹1.75 crore that had been attached by the Enforcement Directorate in the Torres fraud case.
The EOW had sought the assets for compensating investors who allegedly lost money in the scheme operated by Platinum Hern Pvt Ltd under the Torres jewellery brand.
The agency claimed that around 14,000 investors suffered losses totalling about ₹142 crore after being induced to invest on promises of unusually high weekly returns.
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EOW Sought Assets for Investor Compensation
According to the prosecution, Platinum Hern allegedly attracted investors by promising weekly returns of 6% on investments linked to jewellery studded with moissanite, an alternative to diamonds.
The EOW said it had already attached properties worth ₹18.24 crore during its investigation and had initiated action against the accused.
However, it told the court that it could not attach another set of properties worth ₹1.75 crore because those assets had already been attached by the ED during its separate money-laundering investigation.
The prosecution argued that unless the properties were handed over to the state investigating agency, depositors could suffer irreparable losses and their claims might remain unpaid.
The ED did not object to the release of the properties, provided the assets were ultimately restituted to legitimate claimants who had suffered quantifiable losses.
Court Says Trial Delay Alone Is Not Enough
The court rejected the prosecution’s argument that attached properties could be transferred to an investigating agency merely because the trial had not yet begun.
It said there must be reasonable grounds explaining why the trial had not commenced and what steps had been taken by the prosecution to move the proceedings forward.
The court observed that the mere fact that a trial had not started did not automatically give an investigating agency the right to claim property already under attachment.
On that basis, it declined to order the release of the ₹1.75 crore in ED-attached properties to the EOW.
₹142 Crore Fraud Probe Continues
The underlying Torres case concerns allegations that thousands of investors were induced to put money into a high-return investment scheme linked to the jewellery business.
The EOW claims around 14,000 investors were affected, with alleged losses of about ₹142 crore.
The ED subsequently opened a money-laundering investigation and attached properties worth ₹1.75 crore.
The latest order does not affect the wider criminal or money-laundering proceedings. It is limited to the EOW’s request to obtain the attached assets for potential investor compensation.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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