Torres Jewellers scam: Key accused in ₹177 crore money laundering case arrested in Dubai
Synopsis
Months after fleeing India, Torres Jewellers key accused Sagar Mehta has been arrested in Dubai on a Red Corner Notice — cracking open a ₹177 crore alleged Ponzi operation that promised investors weekly returns of up to 9% on gemstone investments. Three Ukrainian co-accused remain at large, and extradition proceedings are now the critical next step.
Key Takeaways
The Enforcement Directorate (ED) confirmed the arrest of Sagar Mehta in Dubai in connection with the ₹177 crore Torres Jewellers money laundering case.
Mehta had fled India on 24 December 2024 and was arrested after a Red Corner Notice was executed by UAE authorities.
Platinum Hern Pvt Ltd (PHPL) , which operated Torres Jewellers, allegedly promised weekly returns of 2%–9% and a 20% referral bonus to investors.
Three Ukrainian nationals — Olena Stoian , Oleksandr Zapichenko , and Viktoria Kovalenko — remain wanted in the case.
The ED is expected to pursue extradition or deportation proceedings to bring Mehta back to India for PMLA trial.
The Enforcement Directorate (ED) has confirmed the arrest of wanted accused Sagar Mehta in connection with the ₹177 crore money laundering case linked to the alleged Torres Jewellers Ponzi scheme. Mehta was arrested in Dubai on Thursday by UAE authorities following the execution of a Red Corner Notice issued at the ED's request, after he had remained a fugitive for several months.
Arrest and Court Proceedings
Mehta's lawyer approached the special Prevention of Money Laundering Act (PMLA) court seeking withdrawal of the proclamation proceedings that had been initiated against him at the ED's request. The court was formally informed of his arrest in Dubai. According to investigators, Mehta had fled India on 24 December 2024 and had been evading authorities since.
The special PMLA 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, arranged initial funds through illicit channels, and facilitated the conversion of unaccounted money into apparently legitimate investments.
How the Alleged Scheme Operated
Platinum Hern Pvt Ltd (PHPL), which operated Torres Jewellers, allegedly attracted investors by marketing synthetic moissanite as precious gemstones and promising unusually high returns. The prosecution alleges the company offered weekly returns of between 2% and 9% on investments in gold, silver, diamond jewellery, and precious gemstones.
Investors were also reportedly offered a 20% 'investment bonus' for recruiting new participants — a referral structure that investigators say is characteristic of Ponzi operations. According to the ED, the scheme relied on misleading advertisements, attractive bonuses, and unrealistic return promises to draw in victims.
Mehta's Alleged Role
The ED has alleged that Sagar Mehta played a central role in collecting and transferring the proceeds of the alleged fraud before fleeing the country. His arrest in Dubai is considered significant for the ongoing investigation into the alleged money-laundering network and the movement of funds linked to the case.
This comes amid a broader crackdown by Indian financial crime agencies on cross-border money laundering operations, with several high-profile fugitives being traced through international cooperation mechanisms including Interpol Red Notices.
What Happens Next
With Mehta now in custody in Dubai, the ED is expected to pursue extradition proceedings or seek his deportation to India to face trial under the PMLA. The three Ukrainian nationals named in the case remain at large, and investigators are continuing to trace the movement of funds allegedly siphoned through the scheme. The outcome of these proceedings could set a precedent for how India pursues cross-border investment fraud cases going forward.
Point of View
But the harder work lies ahead. Extradition from the UAE is rarely swift, and three Ukrainian nationals named in the case remain unaccounted for — which means the alleged financial architecture of the scheme is still only partially dismantled. The Torres Jewellers case also raises a structural question that Indian regulators have not fully answered: how did a synthetic gemstone investment platform promising weekly returns of up to 9% operate long enough to allegedly accumulate ₹177 crore in investor funds? The arrest makes headlines; the systemic gaps that allowed the scheme to flourish deserve equal scrutiny.
NationPress
28 Aug 2026
Frequently Asked Questions
Who is Sagar Mehta and why was he arrested in Dubai?
Sagar Mehta is a key accused in the ₹177 crore Torres Jewellers money laundering case. He was arrested in Dubai by UAE authorities following the execution of a Red Corner Notice issued at the Enforcement Directorate's request, after he fled India on 24 December 2024.
What is the Torres Jewellers Ponzi scheme?
The Torres Jewellers case involves allegations that Platinum Hern Pvt Ltd (PHPL), which operated Torres Jewellers, ran a fraudulent investment scheme by marketing synthetic moissanite as precious gemstones and promising investors weekly returns of 2%–9%, along with a 20% referral bonus for recruiting new participants — characteristics investigators associate with a Ponzi structure.
Who are the other accused in the Torres Jewellers case?
Besides Sagar Mehta, the special PMLA court issued non-bailable warrants against three Ukrainian nationals — Olena Stoian, Oleksandr Zapichenko, and Viktoria Kovalenko. They are alleged to have designed the scheme's financial and money-laundering structure and arranged illicit funds.
What happens next after Mehta's arrest in Dubai?
The ED is expected to pursue extradition or deportation proceedings to bring Mehta back to India to face trial under the Prevention of Money Laundering Act (PMLA). Investigators are also continuing to trace the movement of funds and track the three Ukrainian nationals who remain at large.
How much money is allegedly involved in the Torres Jewellers case?
The Enforcement Directorate has linked the case to alleged money laundering of ₹177 crore. Investigators allege that funds collected from investors were collected and transferred through a network that included Sagar Mehta and the three Ukrainian nationals named in the case.
