Citi fraud case: Hero Group official Sanjay Gupta arrested
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Gurgaon: Police today arrested a senior official of the Hero Group, Sanjay Gupta, in connection with the estimated Rs 300 crore Citibank fraud case.
Gupta, who is the Associate Vice President (Accounts) of one of the Hero Group entities - Hero Corporate Services, has been arrested under the section 120B of the Indian Panel Code that deals with criminal conspiracy.
He was later produced before D.N. Bhardwaj, the Chief Judicial Magistrate cum Additional Civil Judge, Senior Division.
The local police had last week called Gupta for questioning along with Shivraj Puri, the main accused in the fraud discovered at the Citibank's Gurgaon branch.
Gurgaon Police Commissioner S.S. Deswal had said that Gupta was called as part of investigations as a major chunk of the money has gone into brokerage firms - Religare and Bonanza - whose officials were also called for questioning.
The fraud, which is estimated to be Rs 300 crore, relates to mis-selling of investment products to high networth clients.
Puri, as Relationship Manager of the bank, used to sell investment products claiming that they would generate very high return of 18 per cent. He was arrested last week and was sent to police custody for a week.
Last week, Brijmohan Lal Munjal-led Hero Group had admitted that its exposure to the fraud was to the tune of Rs 28.75 crore.
Although the group has maintained that its flagship firm Hero Honda has no connection with the fraud case, the National Capital-based business house is silent on involvement of other BML Munjal-led group entities - Hero Corporate Services, Rockman Cycles Industries, Hero Mindmine Institute, Easy Bill and Hero Management Service.
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