RBI investigating Rs 300 crore Citi Bank fraud

The Reserve Bank is investigating the 300 crore rupees fraud in Citi Bank’s Gurgaon branch, which saw diversion of depositors funds in stock markets. Several high networth individuals including promoters of Hero Group, were lured by Citibank’s Relationship Manager Shivraj Puri, the main accused in the scam, into investing funds on promise of high returns.

Victims of the fraud have complained to the police that their securities were encashed without their knowledge. Sanjeev Aggarwal, managing director of Helion Advisors, had yesterday filed an FIR with the local police, alleging he was cheated of his life’s savings of about 33 crore rupees in the fraud.

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.

Citibank, however, dismissed allegations of involvement of its senior executives in the fraud. The local police today ruled out the possibility of questioning Citibank’s global CEO Vikram Pandit and other top honchos in connection with the scam.