New Delhi: Citibank has dismissed allegations of involvement of its senior executives in the Rs 300 crore fraud at its Gurgaon branch as claimed by high networth individual Sanjeev Aggarwal who lost Rs 32.43 crore in the cheating case.
"As this individual (Sanjeev Aggarwal, managing director of Helion Advisors) knows well, Citi identified the fraud and immediately reported the matter to the regulators and the law enforcement agencies", Citibank said in a statement.
"His claims against senior executives are completely without basis and we intend to contest them vigorously. It was on Citi complaint that the Gurgaon police lodged an FIR and are currently investigating the matter", the statement said, adding the bank would continue to work with authorities on the investigation.
Aggarwal yesterday filed an FIR with the local police alleging that he was cheated of his life's savings of Rs 32.43 crore in the fraud masterminded by Citibank's Relationship Manager Shivraj Puri.
Besides senior officials of the bank, Aggarwal named Indian-born global CEO of the Citibank Vikram Pandit and Chairman William R. Rhodes in the FIR that alleged criminal breach of trust, falsification of accounts, cheating and criminal conspiracy by the bank officials.
Aggarwal had alleged that it was not possible for an employee to commit such a big fraud without the knowledge of the bank.
"Being a multinational bank of formidable repute, we trusted Citibank NA with our life savings which have now been wiped out by an illegal act and offence committed by the Bank and its employees.
"It is impossible for an employee to undertake fraud of such a scale without the knowledge of the bank...I am devastated at this loss on my savings and strongly feel that Citibank NA is accountable to return my money", he had said in a statement.
The fraud at the Citibank's Gurgaon branch, involving diversion of depositors money into the stock market, was uncovered last week. Besides Aggarwal, several other high networth individuals (HNIs), the victims of the fraud, have complained to the police that their securities were encashed without their knowledge.
These investors were lured into investing funds on promise of high returns by Puri, the main accused in the Rs 300 crore scam.