Whistleblower CA in Torres Jewellery Fraud Seeks Police Protection Amid Threats

Introduction

The multi-crore Torres Jewellery fraud case has taken a new turn as Abhishek Gupta, a 31-year-old chartered accountant and self-proclaimed whistleblower, has approached the Bombay High Court seeking police protection. Gupta, who audited the company’s financial records, claims to have uncovered massive irregularities and now alleges threats to his life.

High Court Steps in to Address Safety Concerns

In a hearing held on Friday, a division bench of Justices Revati Mohite Dere and Neela Gokhale addressed Gupta’s petition. The court has granted Gupta’s legal team the liberty to include the Economic Offences Wing (EOW) of the Mumbai Police as a party to the case.

This move is seen as a significant step in ensuring a thorough investigation into the alleged financial fraud and addressing Gupta’s claims of intimidation.

CA Unveils Financial Irregularities in Audit Report

Gupta claims that while preparing the audit report for Torres Jewellery for FY 2023-24 (dated December 26, 2024), he uncovered significant financial discrepancies and non-compliance issues. His revelations include:

1. Intimidation and Threats: Gupta alleges he was physically intimidated at the company’s Lower Parel office. His phone was confiscated, and he was offered a ₹5 crore bribe by three Ukrainian nationals to suppress the findings.
2. Ignored Complaints: Gupta approached the N M Joshi Marg police station on December 29, 2024, to file a complaint but claims his grievances were not acknowledged.
3. Professional Obligations: As an auditor, Gupta asserts that he reported the findings to the company’s director, Sarvesh Surve, as required by his professional ethics.

Massive Fraud Allegations Shake Investor Confidence

The Torres Jewellery case involves accusations of defrauding investors of crores through deceptive schemes. On January 6, 2025, an FIR was filed at Shivaji Park police station, exposing the alleged Ponzi-like operations involving domestic and foreign entities.

Director Sarvesh Surve also wrote to the Prime Minister and other authorities earlier this year, highlighting the magnitude of the financial mismanagement.

Whistleblower Protection and the State’s Response

Gupta’s petition underscores the challenges faced by whistleblowers in India. He has requested:

• Police Protection: Gupta claims to have filed an application with the Additional Commissioner of Police (Protection and Security) on January 6, seeking safety measures, but alleges no response.
• Transfer of Investigation: He has urged the court to transfer the case to the CID or form a Special Investigation Team (SIT) for an impartial probe.

The state’s legal representative, Additional Public Prosecutor Prajakta Shinde, informed the court that a report on Gupta’s threat perception is under preparation.

A Look at the Road Ahead

This high-profile case is a litmus test for India’s whistleblower protection mechanisms. As the High Court resumes hearing on Monday, critical issues are likely to be addressed:

1. Ensuring Safety for Whistleblowers: Protection for individuals like Gupta who expose financial frauds is crucial for systemic transparency.
2. Strengthening Investigations: Involving the Economic Offences Wing could add credibility and rigor to the probe.
3. Long-Term Reforms: Cases like this highlight the need for legislative changes to protect whistleblowers and prevent financial fraud.

Why This Case Matters

The Torres Jewellery fraud case is not just about financial mismanagement; it also brings focus to the systemic gaps in safeguarding those who bring wrongdoing to light. Chartered accountants, auditors, and other financial professionals play a vital role in ensuring compliance and integrity, but their safety often remains an afterthought.

Gupta’s case shines a spotlight on the vulnerabilities of whistleblowers, underscoring the urgent need for policy reforms to create a secure environment for those upholding professional ethics and accountability.

Conclusion: Awaiting Justice and Protection

The Bombay High Court’s decision on Monday is expected to play a pivotal role in determining the trajectory of the Torres Jewellery case. As stakeholders await justice, the spotlight remains on the court to ensure transparency, accountability, and the safety of whistleblowers like Abhishek Gupta.

By addressing the systemic gaps highlighted in this case, India could take a step closer to ensuring a safer and more transparent financial ecosystem.