Jan. 5: Hero Corporate Service said on Wednesday that it has identified two more employees involved in the Citibank fraud. Meanwhile the police has ruled out the possibility of questioning Citibank’s global CEO, Mr Vikram Pandit, in this case. “Following an initial internal enquiry, two employees — Ganpat Singh and Gaurav Jain — working in the accounts department have also been identified to have been in possible collusion with Mr Sanjay Gupta, associate vice-president, accounts, Hero Corporate Service and Citibank employees. They have been sent on leave with immediate effect by the company,” said a statement from Hero Corporate Service.
In a Rs 300-400 crore fraud, relationship manager at the Gurgaon branch of Citibank, Shivraj Puri had sold fake schemes to high networth individuals (HNI) customers that promised high returns. It was later found that Mr Gupta had taken bribes from Puri for allegedly investing in these fraudulent schemes about Rs 250 crore belonging to promoters of the Hero group firms. Both Puri and Gupta are in police custody.
Police will also question the local staff of the Gurgaon Citibank branch in connection with the FIR filed by a high networth individual and managing director of Helion Advisors, Mr Sanjeev Aggarwal who lost Rs 32.43 crore in the fraud case.
“At this point of time the possibility of involvement of a global Indian CEO looks remote,” Gurgaon Police Commissioner, Mr S.S. Deswal, said. Mr Aggarwal in his FIR had named Indian-born global CEO of Citibank, Mr Vikram Pandit, chairman, Mr William. R. Rhodes and some other top officials of the bank in connection with the fraud.
Mr Aggarwal added that the fraud was a “systemic failure” and the chief executive cannot escape responsibility. He said that the bank had offered him a “settlement” a few days ago on his loss of `33 crore but they suddenly turned quiet on the offer. Citibank in turn refutes Mr Aggarwal’s claims and said “we intend to contest them vigorously.”
“It was on Citi’s complaint that the Gurgaon police lodged an FIR and are currently investigating the matter. Citi will continue to work with the authorities on this investigation,” the statement added.