ID :
155365
Thu, 12/30/2010 - 08:47
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https://oananews.org//node/155365
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FM rules out systemic failure in Citibank fraud
New Delhi, Dec 29 (PTI) Union Finance Minister Pranab
Mukherjee Wednesday ruled out any systemic failure in
the alleged fraud at Citibank which is estimated at Rs 400
crore and said "regular precautions are being taken".
"There are regular regulations and all other precautions
are being taken. But if there is an individual misdemeanour
that has to be acted on. Law will take its own course of
action," Mukherjee told reporters here.
The alleged fraud which could run into Rs 400 crore (USD
88 million) was detected at Citibank's Gurgaon branch in the
north Indian state of Haryana.
An First Information Report (FIR) for cheating and
forgery against a bank employee and three others was lodged
and 18 accounts having close to Rs 4 crore frozen were frozen
Tuesday.
The fraud is said to be a handiwork of Shivraj Puri, a
relationship manager at the branch, who allegedly sold
investment products to high networth clients claiming that
they would generate unusually high returns.
It is also alleged that Puri, who is named in the FIR,
showed a forged notification of market regulator Securities
and Exchange Board of India for obtaining funds from
customers.
He also allegedly routed the fund garnered from HNI
customers to stock market through brokerage firms like
Religare Securities. He is also accused of claiming that these
products were authorised by the bank's investment product
committee.
Citibank India spokesperson said, "We immediately
reported the matter to all the relevant regulatory and law
enforcement authorities. Identified suspicious transactions
have been isolated and we are providing full assistance to the
authorities in their investigations."
"We recently initiated an investigation into a certain
set of suspicious transactions based on documents forged by an
employee involving a few accounts in our Gurgaon branch," the
spokesperson said.
The bank said the issue did not impact other accounts
or transactions or customers of the bank.
Meanwhile, Religare said Puri is a client with Religare’s
broking business in his individual capacity since June 2009
and all KYC formalities and other due diligence has been
followed.
"We have no knowledge of the details of this alleged
scam," Religare said, adding it will cooperate and furnish all
information, as and when required by investigating authorities
on this matter. PTI DP
PBL
Mukherjee Wednesday ruled out any systemic failure in
the alleged fraud at Citibank which is estimated at Rs 400
crore and said "regular precautions are being taken".
"There are regular regulations and all other precautions
are being taken. But if there is an individual misdemeanour
that has to be acted on. Law will take its own course of
action," Mukherjee told reporters here.
The alleged fraud which could run into Rs 400 crore (USD
88 million) was detected at Citibank's Gurgaon branch in the
north Indian state of Haryana.
An First Information Report (FIR) for cheating and
forgery against a bank employee and three others was lodged
and 18 accounts having close to Rs 4 crore frozen were frozen
Tuesday.
The fraud is said to be a handiwork of Shivraj Puri, a
relationship manager at the branch, who allegedly sold
investment products to high networth clients claiming that
they would generate unusually high returns.
It is also alleged that Puri, who is named in the FIR,
showed a forged notification of market regulator Securities
and Exchange Board of India for obtaining funds from
customers.
He also allegedly routed the fund garnered from HNI
customers to stock market through brokerage firms like
Religare Securities. He is also accused of claiming that these
products were authorised by the bank's investment product
committee.
Citibank India spokesperson said, "We immediately
reported the matter to all the relevant regulatory and law
enforcement authorities. Identified suspicious transactions
have been isolated and we are providing full assistance to the
authorities in their investigations."
"We recently initiated an investigation into a certain
set of suspicious transactions based on documents forged by an
employee involving a few accounts in our Gurgaon branch," the
spokesperson said.
The bank said the issue did not impact other accounts
or transactions or customers of the bank.
Meanwhile, Religare said Puri is a client with Religare’s
broking business in his individual capacity since June 2009
and all KYC formalities and other due diligence has been
followed.
"We have no knowledge of the details of this alleged
scam," Religare said, adding it will cooperate and furnish all
information, as and when required by investigating authorities
on this matter. PTI DP
PBL
