Understanding Citibank fraud – After Shiv raj Puri Now Citi Group CEO Vikram Pandit and top management named in First Information Report

What is city bank Fraud? What happened in city bank fraud?



Updated on Wednesday, March 09, 2011-

According to the police city bank’s assistant vice-president Binu Soman lodged a complaint with the local police, complaint states that Shivraj Puri had got a joint account opened in the names of Prem Nath, Sehna Prem Nath, and Deeksha Puri in September 2009.



A senior police officer investigating the Citibank fraud case at Gurgaon said that they have already seized 18 accounts, which have been opened in the name of the four accused. These accounts have only Rs 3.85 crore.

The main accused, Shivraj Puri, was working with the bank for the past seven-eight years

Shiv Raj Puri a relationship manager employed with Citibank's Gurgaon branch (DLF-II), allegedly collected fund from high networth individual (HNIs) and corporates were diverted into the stock market by showing a forged notification of Sebi to lure them into investments on promise of unusually high returns.

He also allegedly routed the fund garnered from the HNI customers to stock market through brokerage firms like Religare Securities.
He also claimed that these products were authorized by the bank's investment product committee.

The accused, Shivraj Puri, who is the banks relationship manager, had been arrested in this connection.

The number of investors could be 18 to 20 including corporates and HNIs who are both local.

According to Police, Rs 200 crore belonged to corporates including Hero group and Rs 100 crore to individuals.

Brijmohan Lal Munjal-led Hero group meanwhile admitted that its exposure to the fraud is to the tune of Rs 28.75 crore

Sanjay Gupta who is the Chief Financial Officer of the Hero Group was arrested in connection with the 300-crore Citibank scam as he got kickbacks for investing the company's money through Citibank manager, Shivraj Puri the main accused.

Sanjay Gupta had opened two accounts in the name of BG Finances and G2S Management Consultant in Axis Bank.
Police has already freezed these both accounts.

Both Puri and Gupta allegedly had a deal to first get the money deposited in Gupta's company, from where Puri would siphon it off to one of his 'fake' accounts.

Puri had opened three accounts in a Gurgaon branch in the names of his relatives.
He had asked customers to deposit money in these accounts under a scheme that promised double returns.
But once money was deposited, Puri transferred it into his own account.

Gurgaon Police Commissioner SS Deswal said cases of cheating and forgery have been filed against Puri and three others.
Reserve Bank of India (RBI) and SEBI both are investing this matter.

Normally Sebi does not issue a circular addressed to a banking organization as Sebi is not a regulatory authority for banks.

The local police registered an FIR naming Indian-born global CEO of the bank Vikram Pandit and 10 other officials in the Rs 300-crore Citibank fraud case.

The others who have been named in the FIR include Citibank's senior officials CFO John Gerspach and COO Douglas Peterson (both based in New York).

The others who figure in the FIR are Amit Zarpuri, Ashwini Chaddha, Amrita Farmahan, Rahul Soota, N Rajshekaran, Pramit Jhaveri and Shivraj Puri, the main accused in the fraud case.

The FIR filed by a high net worth individual (HNI) Sanjiv Agarwal with the Gurgaon police also names Citibank chairman William R Rhodes along with other senior officials based in India.

The case has been registered under sections 409, 477A, 420 and 120B of IPC.

2G Scam head is not responsible.
Common corruption wealth games head is not responsible.
Adarsh Society scam head is not responsible.
Bofors Scam no one is punished.


Then how come Vikram Pandit becomes accused in this fraud.

Indian Laws we need to amend them otherwise our nation will never improve.
Our laws are useless which protect criminals and good people fear and go to the jail.

Reality views by sm –
Tuesday, January 04, 2011

Update – Thursday, January 06, 2011

The Gurgaon police said that Citibank CEO Vikram Pandit and his colleagues in the bank's top-most rung will not be questioned and summoned in connection with the 300-crore Citibank scam that was born in Gurgaon near Delhi.

Hero Group found two more employees - Ganpat Singh and Gaurav Jain, working in the accounts department - who participated in this scam.

Updated on Wednesday, March 09, 2011-

Citi Bank Rs 460 crore fraud services of 7 employees terminated –

Last year Citi Bank detected fraud of Rs.460 crore at its Gurgaon branch

After that few employees were under suspension.
"Following disciplinary procedures, services of a few employees of our Gurgaon branch have been terminated," Citibank spokesperson said.

Director of Income Tax and Directorate of Enforcement (ED) have initiated investigation in the Citibank fraud case.

Police Commissioner (Gurgaon) S S Deswal said that seven Citibank employees have been terminated but said that they would investigate whether they were part of the scam or not.

Several depositors and high-networth individuals (NHIs) duped to the tune of Rs 460 crore in a fraud allegedly masterminded by Citibank's Global Wealth Manager Shivraj Puri.