The Metropolitan Police Service has launched an investigation into the financial collapse of luxury jeweller Vashi, involving suspected economic crime linked to Diamond Manufacturers Ltd, which operated under the Vashi brand. The company entered liquidation in April 2023 with debts estimated at £170 million, prompting widespread concern among investors.

The Met’s complex fraud team has established a dedicated task force, Operation Palisade, to examine the circumstances surrounding the company’s collapse. Police described the inquiry as a “new and priority investigation,” emphasizing that it had recently been assigned to officers with expertise in serious and complex fraud cases. An internal communication to investors indicated that the matter, while reported previously, had only recently gained this focused attention.

Vashi Dominguez, founder and chief executive of the company, has faced scrutiny since the liquidation but has not been publicly implicated in criminal probes. However, the broader investigation into the company’s financial management marks a significant development for investors seeking accountability.

Central to the inquiry is Rajnikant Chhotabhai Patel, the long-standing accountant for Vashi and principal of the Ilford-based firm Inger & Co. Patel is due to appear before the Institute of Chartered Accountants in England and Wales (ICAEW) for a disciplinary hearing scheduled for this week. The hearing will address alleged professional misconduct under disciplinary by-law 4.1a, which concerns behaviour deemed discreditable to the individual, the institute, or the profession as a whole.

Patel’s professional conduct has been under scrutiny for some time. Between 1998 and 2024, the Association of Chartered Certified Accountants (ACCA) completed seven audit reviews involving Patel and his firm. In 2023 and 2024, he was investigated following complaints related to his audit work and the fees he charged. Patel acknowledged the allegations, resulting in a severe reprimand, a £3,500 fine, and the removal of his auditing certificate by ACCA in November 2024. Additionally, he is no longer a member of that body.

The ongoing inquiry by the Metropolitan Police signals a renewed effort to address concerns related to the collapse of Vashi and to clarify whether criminal offences were committed in the handling of the company’s finances. Investors affected by the liquidation have welcomed the investigation as a crucial step toward resolving outstanding questions about the jeweller’s failure.