The recent Torres scam, which surfaced on January 5, 2025, is not an isolated incident. In fact, Mumbai has witnessed a sharp rise in financial frauds. According to the Economic Offences Wing (EOW) of the Mumbai Police, by November 2024, a total of 69 fraud cases, including Ponzi schemes, were registered, amounting to a staggering ₹3,514 crore in fraudulent activity. The investigations into these cases are still ongoing.
Recent data from the Mumbai Police reveals that in the past seven years, EOW has registered 695 cases of financial fraud, with a combined loss of ₹32,651 crore. While the number of cases has seen a decline, the monetary value of these frauds has escalated.
2018: 123 cases, involving ₹4,072 crore in fraud and ₹45.49 lakh worth of assets seized.
2019: 110 cases, with fraud totaling ₹3,421 crore.
2020 (Pandemic Period): 57 cases, with a massive ₹9,681 crore lost.
2021: 107 cases, amounting to ₹4,774 crore in fraud.
2022: 158 cases, with fraud totaling ₹4,986 crore.
2023: 71 cases, with ₹2,203 crore defrauded.
Delayed Investigations Affecting Fraud Detection Rates
When it comes to the detection of fraud, Mumbai lags behind cities like Delhi, Jaipur, and Kanpur. EOW officials point out that the prolonged investigation process is primarily due to the complex nature of financial crimes, which depend heavily on documentary evidence, forensic analysis, bank records, and handwriting reports, all of which take time to process. As a result, these delays contribute to many cases remaining unresolved for longer periods.
Experts suggest that thorough investigations are critical, but they also highlight that the slow pace of these inquires is one of the main reasons cases tend to remain pending.
EOW’s Evolving Jurisdiction and Case Handling
Over the years, the EOW's jurisdiction has expanded to cover more significant financial crimes.
2007: The threshold for handling cases was set at ₹50 lakh.
2014: The limit increased to ₹3 crore.
2018: The threshold was raised to ₹6 crore.
Present: Now, cases involving fraud of over ₹10 crore are within the EOW’s jurisdiction.
This shift is expected to streamline investigations and reduce the department's workload by narrowing the scope of cases requiring detailed scrutiny.