ID :
155792
Tue, 01/04/2011 - 08:43
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https://oananews.org//node/155792
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Hero official arrested in Citi case, remanded in 5-day custody
Gurgaon, Jan 3 (PTI) The Rs 300-crore Citibank fraud
on Monday took a new turn with police arresting India's
biggest motorcycle maker Hero Group's senior official Sanjay
Gupta who allegedly invested Rs 250 crores of various group
companies with Shivraj Puri, the alleged mastermind of the
scam.
"Gupta had invested around Rs 250 crore from different
Hero Group companies and their promoters. For this, Gupta had
formed two finance companies -- BG Finance and G2S, and took a
commission of Rs 20 crore from Puri for investing the amount,"
Gurgaon Police Commissioner S S Deswal told reporters here.
Gupta, an Assistant Vice-President with Hero Group, was
arrested on Monday and later produced before a local court
which remanded him in police custody for five days. Last week,
he was questioned by the police after Puri, a relationship
manager with Citibank's Gurgaon branch in the north Indian
state of Haryana, was arrested.
Later in the day, police froze two accounts opened by
Gupta with Axis Bank which were having Rs 4-5 crores of the
alleged commission money he got from Puri for investing
corporate funds.
Most of the funds that Gupta had allegedly invested
through Puri were believed to have been diverted in derivative
instruments in stock markets.
Although police sought Gupta's custody for 10 days, the
Chief Judicial Magistrate D N Bhardwaj allowed only five-day
remand.
"Puri had admitted that Gupta was aware of the forged
SEBI letter, on which the amounts were lured from high
networth clients," Deswal said.
However, Gupta's counsel C L Kakkar pleaded before the
court that he is not the accused, but a victim, and he
could turn a witness if required.
Puri used to sell investment products by showing a
forged letter of the market regulator Securities and Exchange
Board of India (SEBI) with a claim that they would generate
very high return of 18 per cent.
He was arrested last week and sent to police custody for
a week.
Last week, Brijmohan Lal Munjal-led Hero Group had
admitted that its exposure to the fraud was to the tune of Rs
28.75 crore.
on Monday took a new turn with police arresting India's
biggest motorcycle maker Hero Group's senior official Sanjay
Gupta who allegedly invested Rs 250 crores of various group
companies with Shivraj Puri, the alleged mastermind of the
scam.
"Gupta had invested around Rs 250 crore from different
Hero Group companies and their promoters. For this, Gupta had
formed two finance companies -- BG Finance and G2S, and took a
commission of Rs 20 crore from Puri for investing the amount,"
Gurgaon Police Commissioner S S Deswal told reporters here.
Gupta, an Assistant Vice-President with Hero Group, was
arrested on Monday and later produced before a local court
which remanded him in police custody for five days. Last week,
he was questioned by the police after Puri, a relationship
manager with Citibank's Gurgaon branch in the north Indian
state of Haryana, was arrested.
Later in the day, police froze two accounts opened by
Gupta with Axis Bank which were having Rs 4-5 crores of the
alleged commission money he got from Puri for investing
corporate funds.
Most of the funds that Gupta had allegedly invested
through Puri were believed to have been diverted in derivative
instruments in stock markets.
Although police sought Gupta's custody for 10 days, the
Chief Judicial Magistrate D N Bhardwaj allowed only five-day
remand.
"Puri had admitted that Gupta was aware of the forged
SEBI letter, on which the amounts were lured from high
networth clients," Deswal said.
However, Gupta's counsel C L Kakkar pleaded before the
court that he is not the accused, but a victim, and he
could turn a witness if required.
Puri used to sell investment products by showing a
forged letter of the market regulator Securities and Exchange
Board of India (SEBI) with a claim that they would generate
very high return of 18 per cent.
He was arrested last week and sent to police custody for
a week.
Last week, Brijmohan Lal Munjal-led Hero Group had
admitted that its exposure to the fraud was to the tune of Rs
28.75 crore.
