Torres Jewellery Ponzi scam: Accused Mohammad Tausif Riyaz claims whistleblower status in bail plea
Mumbai: Mohammad Tausif Riyaz, arrested in connection with the Torres Jewellery fraud case, has moved a special court for bail, claiming he acted as a whistleblower. He alleged that law enforcement agencies were aware of the fraud since June last year but failed to take timely action.
Riyaz was taken into custody by the Economic Offences Wing (EOW) on 25 January for his alleged role in the scam. In his bail application, he contended that he had alerted authorities about the fraudulent operations before the scam was publicly reported. He stated that a group of Ukrainian nationals had approached him for assistance in setting up a jewellery business in India, and he had worked as a consultant at the store.
On 4 January, Riyaz reportedly sent emails to multiple agencies, including the Mumbai, Thane, and Navi Mumbai police, as well as SEBI and RBI, raising concerns about Torres. He claimed to have provided evidence that Rs 200 crore in illegal cash was collected, converted into cryptocurrency, and transferred abroad.
He further alleged that Torres had been issued multiple notices in June, October, and November, indicating that authorities had prior knowledge of the wrongdoing. Over 10,000 investors have lodged complaints against Torres, alleging a total fraud of Rs 117.63 crore.
Riyaz is among those arrested based on a complaint filed at Shivaji Park police station by a 31-year-old vegetable vendor. The complainant alleged that he and his family invested Rs 4.55 crore, while 37 others known to him invested Rs 8.93 crore. The company had promised 6% returns on purchases of Moissanite bracelets but allegedly defaulted after initially paying investors to build trust.
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Kasaragod: ED books Kunhahmed Musliyar Memorial Trust for FCRA violation
New Delhi (PTI): The Enforcement Directorate has registered a forex violation case against a Kerala-based charitable organisation for receiving Rs 220 crore from abroad in alleged violation of the Foreign Contribution Regulation Act (FCRA).
The investigation pertains to Kunhahmed Musliyar Memorial Trust located in Kasargod and its chairman Ibrahim Ahmad Ali, an NRI.
Searches were conducted under the Foreign Exchange Management Act (FEMA) at two locations in Kasargod on Thursday in connection with the case, the ED said in a statement.
The Trust, according to the ED, received more than Rs 220 crore since 2021 from Ibrahim Ahmad Ali, which was reflected in the books of accounts as "unsecured" loans.
However, no loan agreement, interest rate terms, or repayment schedule were available, and no repayment had been made till date, the probe agency said.
The probe found that these funds were received by Ali from a UAE company named Universal Lubricants LLC.
In the absence of supporting documents and in view of the clarification given under a section of the FCRA, the said loan prima facie qualified as "foreign contribution" under FCRA, the statement said.
According to the ED, the Trust is "not registered" under the FCRA and does not possess the "mandatory permission" or a designated FCRA bank account to receive foreign contributions.
It was found that a part of these foreign contributions was "utilised" for the purchase of agricultural land in India, in violation of the existing regulations.
The search action found that the Trust received Rs 2.49 crore in "cash" from Ali in violation of FEMA provisions.
"During the search, incriminating documents, ledger accounts showing unsecured loans of Rs 220 crore, the cash book of the Trust, and a hard disk containing financial data were seized," the ED said.
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