The Reserve Bank is investigating the Rs. 300 crore fraud in Citibank’s Gurgaon branch, which saw diversion of depositors funds in stock markets.
“RBI is investing the matter (Citibank fraud),” a key Reserve Bank source said.
The fraud at the Citibank’s Gurgaon branch, involving diversion of depositors money into the stock market, was uncovered last week.
Several high networth individuals (HNIs), 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 on Tuesday filed an FIR with the local police, alleging he was cheated of his life’s savings of Rs 32.43 crore 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.
