Police questions Hero Corporate CFO in Citibank fraud

Gurgaon, Dec 31 (PTI) Police on Friday questioned
Chief Financial Officer (CFO) of Hero Corporate Services over
investment with a Citibank official suspected to be involved
in a Rs 300 crore fraud even as they claim that the money was
safe.
Brijmohan Lal Munjal-led Hero Group meanwhile admitted
on Friday that its exposure to the fraud allegedly done by
Citibank's Gurgaon branch Relationship Manager Shivraj Puri
is to the tune of Rs 28.75 crore and it was done through its
entities.
Hero Corporate Services Ltd CFO Sanjay Gupta and
senior officials of the brokerage firms Religare and Bonanza
were called by Police to ascertain the money trail into the
whole episode.
Gurgaon Police Commissioner S S Deswal said that Gupta
was called as part of investigations as a major chunk of the
money has gone into brokerage firms--Religare and Bonanza--
whose officials were also called for questioning.
He said probe was on to know whether cash was
available or whether it was invested in financial instruments.
The Commissioner said three other suspects Premnath
(92) and Shiela Premnath (86), Puri's grandparents and Dhiksha
Puri (60), his mother, have not been arrested because their
involvement appears to be negligible. They have been
questioned.
Deswal said majority of the money invested by Puri of
High Networth Individuals (HNIs) and corporate entities was
safe as they have been invested 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,
Securities and Exchange Board of India (SEBI)and Reserve Bank,
Citibank and Police are acting in coordination, he said.
Deswal said Citibank came to know about the fraud
roughly a month back and started its internal investigation
into the matter.
Shivraj Puri, who was arrested on Thursday, will
cooperate in the investigation, he said. MORE PTI