ED Confirms Arrest of Sagar Mehta in Dubai Over Rs 177-Crore Torres Fraud

The Enforcement Directorate (ED) on Thursday confirmed the arrest of wanted accused Sagar Mehta in connection with the Torres fraud case in Mumbai.

The development came to light after Mehta's lawyer approached the court seeking the withdrawal of proclamation proceedings initiated against him at the ED's request. The court was informed that Mehta had been detained in Dubai following the execution of a Red Corner Notice issued at the request of the Indian agency.

According to the prosecution, Mehta was allegedly involved in the scam and fled India on December 24, 2024. The ED has pegged the proceeds of crime uncovered in the investigation so far at Rs 177.11 crore.

The agency stated that Platinum Hern Pvt Ltd (PHPL), which operated Torres Jewelry, lured investors into a fraudulent investment scheme by promising high returns and lucrative rewards. The company allegedly promised weekly returns ranging from 2 per cent to 9 per cent on investments in gold, silver, original diamond jewellery, and precious gemstones.

Investigators also claimed that the firm offered 20 per cent "investment bonuses" for bringing in new investors, operating a chain-like referral model. Sales officers at the showrooms misled customers by organizing seminars, advertising high returns, and offering lucky draws with chances to win luxury cars and expensive mobile phones to project legitimacy.

In reality, the company marketed synthetic moissanite stones, which were significantly cheaper than real diamonds, as high-value investments while claiming their value would appreciate in the future like diamonds.