Citibank fraud: More investors surface, complain to police

Most of the investors have approached the police and their complaints are likely to be clubbed together for investigation, sources said.

As per the latest estimates, about 40 investors -- including the promoters of Hero Group and high net-worth individual (HNI) Sanjeev Aggarwal, the Managing Director of Helion Advisors -- lost money in the ponzi scheme floated by Citibank Relationship Manager Shivraj Puri.

The investors have submitted their claims and stated their positions, sources said, adding that out of the 40 investors, 20-22 are corporate entities.

Till now, only one HNI client -- Aggarwal, who lost about Rs 33 crore -- had filed an FIR on the fraud, in which he accused the top officials of Citibank NA, including the country head, of being the perpetrators.

Based on Aggarwal's FIR, the police will investigate if there is a criminal conspiracy on the part of the bank, sources said, adding that a few officials of the Gurgaon branch will also be questioned.

The entities whose funds were diverted by Puri into the accounts of his relatives include Hero Corporate Services (Rs 13.75 crore), OKS Span Tech (Rs 2 crore) and Satyam Auto (Rs 25 crore).

Furthermore, Mayar Infratech (Rs 24 crore), Spaid (Rs 62 crore), Karopat Pad (Rs 8 crore), Sunil Kant and Sons (Rs 3 crore), Aero Infratec (Rs 25 crore), Hero Exports (Rs 97 crore), Rekha Munjal (Rs 5 crore), Munjal Investments (Rs 2.5 crore) and Munab Braej (Rs 71 crore) fell prey to the scam.

In another development, the police is likely to soon question the co-accused in the fraud case, Premnath and Shiela Premnath, who are the maternal grandparents of Puri.
Meanwhile, SEBI officials have returned to Mumbai after a second round of investigations and may come again, sources said.

"SEBI is investigating as per its own agenda and the police is sharing information with the capital market regulator," sources said.

When asked about Puri's i-Pad, believed to be crucial evidence in the case, sources said, efforts are on to retrieve it.

Sources added that the police has already obtained all the required documents and more evidence is being collected. Sources also said that Sanjay Gupta, the Assistant Vice-President of Hero Corporate, another accused in the case, had received a Rs 20 crore commission from Puri for bringing investment into the ponzi scheme.

During interrogation, Gupta disclosed that he paid Rs 96 lakh as commission to Rajiv Khanna, Rs 5.35 lakh to Bharat Goel and Rs 53.5 lakh to Ashok Goel. These are officials of Hero Exports that helped divert their company's funds.

Hero Exports invested Rs 97 crore in the scheme floated by Puri.Gupta also told the police that the account of BG Finance in Axis Bank was jointly owned by him and his wife Archana Gupta and a commission of Rs 14.95 crore was deposited in it by Puri.

Of this, Gupta invested Rs 7.5 crore in the stock market through Puri, sources said.
Sources also said that while seeking an extension of Gupta's remand, the police had argued in court that custody was required so they could arrest his accomplices.