Two more employees identified in Citibank fraud case: Hero

New Delhi, Jan 5 (PTI) Hero Corporate Service, a
privately held company based in India's capital New
Delhi, on Wednesday said it has identified two more employees
who could have colluded with its former Associate
Vice-President Sanjay Gupta and Citibank employees in the USD
66.3 million fraud.
"Following an initial internal enquiry, two employees --
Ganpat Singh and Gaurav Jain-- working in the accounts
department have also been identified to have been in possible
collusion with Sanjay Gupta and Citibank employees," Hero
Corporate Service said in statement.
They have been sent on leave with immediate effect by the
company, it added.
"This is in addition to the suspension of Gupta by the
company. Further appropriate action will be taken after the
final outcome of the enquiry," it said
Earlier this week, Gupta was remanded to a five-day
police custody in connection with the Citibank fraud case for
allegedly investing about Rs 250 crore belonging to promoters
of the Hero group companies that primarily deals with
manufacturing bicycles and motorcycles.
The Gurgaon police in the Indian state of Haryana
arrested him under the section 120B of the Indian Penal Code
that deals with criminal conspiracy.
According to the police, 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 commission of Rs 20 crore from
Shivraj Puri, the alleged mastermind in the estimated Rs 300-
-crore fraud discovered at the Citibank's Gurgaon branch, for
investing the amount.
The police had last week called Gupta for questioning
along with Puri.
Puri had confessed that Gupta was aware of the forged
Securities And Exchange Board of India's letter, on which the
amounts were lured from high networth clients, the police had
said. PTI