Tuesday, December 28, 2010

Citibank Gurgaon hits scam of 400cr

A case of possible fraud was reported at Citibank DLF-II branch, Gurgaon and is reportedly estimated at Gurgaon is caught in an estimated 400 crore fraud by staff at its retail banking unit in Gurgaon, involving funds from wealthy individuals and corporate clients.Citibank has intimated the Reserve Bank of India and Sebi about the fraud.

The scam was engineered as per the reports, by none other than an employee Shiv Raj Puri who was working as a Relationship Manager for the past 7-8 years, and is alleged to forged the letterhead of the bank to offer a scheme claimed to have been approved by Citibank to clients that could yield high returns in a short span.Puri has also been charged with producing forged circulars from the Securities and Exchange Board of India (Sebi) to indulge people into investing in a non-existent scheme and making people believe that the scheme was only available in that particular branch.The people at Citibank involved in the process were supposedly paid bribes by those brokers.

Citibank fraud was discovered early this month when a customer told a relationship manager that he had invested in a Citibank scheme that promised high returns in a short period, whereas no such scheme existed.Citibank immediately reported the matter to all the relevant and law enforcement authorities.

No comments: