Citibank Fraud for Rs 350 crore unveiled

After series of scam it’s the turn of bank fraud as the DLF-II branch of Citibank on Tuesday unearthed a fraud allegedly done by its relationship manager, Shiv Raj Puri, which could reach a whopping Rs 350-400 crore level.

As per report of the sources, it was told that the fraud surfaced when a foreign bank launched an investigation into a certain set of suspicious transactions involving a few accounts in the Gurgaon branch.

Gurgaon Police Commissioner S.S. Deswal said a first information report under sections of cheating and forgery against a bank employee and three others was lodged and 18 accounts having close to Rs. 4 crore frozen.

It was also told that the whopping amount was siphoned off from 20 high net worth customers.

People familiar with the development told media that the employees involved have been suspected of selling investment products to clients claiming that these would generate unusually high returns. The employees claimed that the products were authorized by the banks investment product committee and used forged bank documents and letterheads to prove the same.

Citibank has already informed the Reserve Bank of India and Sebi about the fraud. The bank also told that identified suspicious transactions have been isolated and they were providing full assistance to the authorities in their investigations.

However, the alleged man behind the fraud, Puri, has gone missing. The ACP (east), Rao Dalbir Singh, said that they would soon issue a look-out circular (LOC) against Puri so that he can’t get out of the country.

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