Gurgaon: Sanjay Gupta, the chief financial officer of Hero Corporate Ltd, has been arrested here on Monday for his alleged connivance in the Rs.300 crore Citibank fraud, police said.
Gupta and senior officials of the brokerage firms Religare and Bonanza were earlier called by police to ascertain the money trail into the whole episode.
Gurgaon Police Commissioner S.S. Deswal 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.
He said probe was on to know whether cash was available or whether it was invested in financial instruments.
The Commissioner said three other suspects Premnath (92) and Shiela Premnath (86), Puri's grandparents and Dhiksha Puri (60), his mother, have not been arrested because their involvement appears to be negligible.
They have been questioned.
Deswal said majority of the money invested by Puri of High Networth Individuals (HNIs) and corporate entities was safe as
they have been invested financial instruments.
He said, the SEBI has confirmed that the letter, which was used to allure customers for investing into the scheme, is forged.
All the agencies involved including regulators SEBI and Reserve Bank, Citibank and Police are acting in coordination, he said.
Deswal said Citibank came to know about the fraud roughly a month ago and started its internal investigation into the matter.