Gurgaon: Fast tracking its probe into the Rs 300 crore Citibank fraud case, the Gurgaon Police on Monday arrested, Sanjay Gupta, Chief Financial Officer of Hero Corporate Services in relation with the controversial investments he made on behalf of Hero.
As per reports, Gupta was arrested on basis of the confessional statement made by Citibank’s Gurgaon branch relationship manager, Shivraj Puri, the mastermind of the entire fraud. Puri was arrested last week.
According to police, Gupta was in the know of the massive fraud perpetrated by Sanjay Puri, Citibank’s relationship manager.
Police said that the fraud was “done in his (Gupta’s) knowledge” and Puri used to give him commission.
Gupta is being produced in a court here.
Hero Corporate is one of the associates of Hero Group which had invested money in Puri’s account – the total exposure of the Group is to the tune of Rs 28.75 crore.
Puri had surrendered last Thursday and was handed a seven-day police remand.
According to police, firms belonging to the Delhi-based Hero Group invested Rs.200 crore in Puri’s account and Rs 100 crore was invested by individuals. Puri, in turn, invested the money in five major brokerages, including Religare, Okaya and Bonanza.
Gurgaon Police Commissioner SS Deswal said majority of the money invested by Puri of High Networth Individuals (HNIs) and corporate entities was safe as they have been invested in financial instruments.
He said, the SEBI has confirmed that the letter, which was used to allure customers for investing into the scheme, is forged.
All the agencies involved including regulators SEBI and Reserve Bank, Citibank and Police are acting in coordination, he said.
Citibank came to know about the fraud roughly a month ago and started its internal investigation into the matter.