Sagar Mehta, a key accused in the Rs 177-crore money laundering case linked to the alleged Torres Jewellers Ponzi scheme, has been arrested by police in Dubai after remaining on the run for several months, the Enforcement Directorate (ED) informed a special PMLA court on Thursday in Mumbai.
Following the arrest, Mehta’s defence lawyer sought the withdrawal of the proclamation issued against him.
The court had earlier issued non-bailable warrants (NBWs) against Mehta and three Ukrainian nationals—Olena Stoian, Oleksandr Zapichenko and Viktoria Kovalenko—in connection with the case.
According to the ED, Mehta allegedly fled India on December 28, 2024, and is accused of assisting in the collection of proceeds of crime linked to the alleged financial fraud.
Alleged Ponzi scheme
Investigators have alleged that Zapichenko and Stoian played key roles in designing the financial structure and money-laundering operations associated with the scheme. They allegedly provided initial funds through unlawful channels and helped convert undocumented cash into investments that appeared legitimate.
The Torres Jewellers operation allegedly attracted investors by marketing synthetic moissanite as precious gemstones while promising unusually high returns.
According to the allegations, the scheme used misleading advertisements, artificial bonuses and a referral-based system commonly associated with Ponzi operations to attract and retain investors.
The alleged scheme eventually came under investigation after large numbers of investors complained of being unable to recover their money.
With Mehta now in custody in Dubai, investigators are expected to pursue the next steps in the case and examine his alleged role in handling and collecting the proceeds of crime.
