Citigroup Investigates Rs350-Crore Fraud at Gurgaon Branch

Citigroup, a global banking powerhouse, is currently facing a massive financial scandal at its Gurgaon branch in India. The bank has revealed that one of its employees, Shivraj Puri, is suspected of siphoning off around Rs350 crore from high net worth (HNI) clients by using a forged SEBI letter to lure them into investing in unauthorized schemes. The monies thus collected have been transferred to various accounts, with the promise of guaranteed returns, and then allegedly invested in the stock markets. The Reserve Bank of India, Securities and Exchange Board of India (SEBI), and the police are jointly investigating the case.

Key Takeaways:

• The Citigroup Gurgaon branch is alleged to have been involved in a Rs350-crore fraud, with one employee, Shivraj Puri, suspected of masterminding the operation.
• Puri is believed to have used a forged SEBI letter to attract high net worth clients into unauthorised investment schemes, promising them guaranteed returns and benefits.
• The monies collected were then transferred to three Citibank accounts, namely Sheela Premnath, Diksha Puri, and Premnath, before allegedly being invested in the stock markets through Delhi-based stock brokers.
• Citigroup has clarified that the fraud is limited to a few accounts and does not impact any of its other accounts or transactions or customers.
• Puri, the alleged mastermind behind the fraud, is currently absconding and his links have been identified by the investigating agencies.
• Shivraj Puri's actions have been condemned by Citigroup, which maintains that it takes such incidents seriously and is committed to maintaining the highest standards of integrity and ethics in its operations.

Statistics:

• Rs350 crore: The amount allegedly siphoned off by Puri from high net worth clients.
• 3: The number of Citibank accounts under which the allegedly laundered monies were transferred.
• 2: The number of financial regulatory bodies involved in the investigation, namely the Reserve Bank of India and Securities and Exchange Board of India (SEBI).

Sources:

• Domain-b.com, "Rs350-crore fraud at Citibank's Gurgaon branch; employee arrested". (2010)