After the multi-crore Torres Company scam surfaced last week, the Mumbai Police and its senior officials seem to have finally woken up. Following the massive fraud committed by Torres Company against thousands of investors, the Economic Offences Wing (EOW) has reactivated its dormant Economic Intelligence Unit (EIU).
According to police sources, during a crime conference held last Thursday with all senior officers, the Mumbai Police Commissioner expressed displeasure over the Torres scam. He issued directives aimed at preventing such frauds in the future, leading to the reactivation of the intelligence unit.
With the EIU back in operation, all police stations across Mumbai will remain in constant contact with it. In case of any suspicious activities resembling the Torres scam within their jurisdiction, the police stations will immediately share inputs with the unit.
History of EIU’s Suspension
The Economic Intelligence Unit of the EOW was disbanded in 2020 due to allegations of corruption against several of its officers. The unit was primarily responsible for gathering intelligence on financial crimes and investment fraud. However, after its dissolution under then-Police Commissioner Sanjay Barve, EOW lacked a robust mechanism for intelligence gathering on large-scale financial crimes.
Post its disbandment, officers of the unit were reassigned to the newly formed General Cheating Unit-4, while the intelligence gathering role was limited to nominal duties under the Joint Commissioner’s Reader.
Enforcement Directorate Joins Investigation
Meanwhile, the Enforcement Directorate (ED) has also initiated a money laundering probe into the Torres Ponzi Scheme. The ED suspects that large-scale financial fraud was perpetrated, with the accused luring lower-middle-class investors by promising high returns.
The ED’s investigation is based on an FIR registered by the Shivaji Park Police. According to the complainant, approximately 1.25 lakh people were duped in the scam, prompting ED’s involvement. The agency has started probing the scale of money laundering involved in the fraud and is working to determine the total amount siphoned off.
This reactivation of the Economic Intelligence Unit and the involvement of the ED underscore the gravity of the Torres scam, which has rattled Mumbai's financial ecosystem.