FM: No systemic failure at Citi

Dec 30, 2010 |

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New Delhi, Dec. 29: The finance minister, Mr Pranab Mukherjee, ruled out any systemic failure in alleged fraud at Citibank which is estimated at `200 crore and said “regular precautions are being taken”.

“There are regular regulations and all other precautions are being taken. But if there is an individual misdemeanour that has to be acted on. Law will take its own course of action,” Mr Mukherjee told reporters here.

The alleged fraud was detected at Citibank’s Gurgaon (Haryana) branch.

An FIR for cheating and forgery against a bank employee and three others was lodged.

The fraud is said to be a handiwork of Mr Shivraj Puri, a relationship manager at the branch, who allegedly sold investment products to high networth clients claiming that they would generate unusually high returns.

He is also allegeded to have routed the funds garnered from HNI customers to the stock market through brokerage firms such as Religare Securities.

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