Citibank fraud pegged at Rs 400 cr; Gupta`s remand extended

Gurgaon, Jan 8 (PTI) The police here on Saturday
estimated the Citibank fraud to be at Rs 400 crore involving
accounts of about 29 entities.
Meanwhile, a local court extended the police custody of
Hero Group senior employee Sanjay Gupta till January 15.
In a report filed with a city court, the police described
Citibank's Relationship Manager at Gurgaon branch Shivraj
Puri, the alleged mastermind of the fraud, as an "educated and
clever person" who had diverted funds of companies and
individuals into an account jointly held by his relatives
Premnath Puri, Diksha Puri and Shaila.
"In the fraud, transactions worth Rs 400 crore had
happened ... (Police are) taking assistance of chartered
accountants. Inflow/outflow chart is being prepared in the
presence of Puri (alleged mastermind of the scam)," the report
said, adding market regulator SEBI is also conducting its own
probe into the fraud.
Earlier, the police had estimated the total fraud to be
at Rs 300 crore.
The entities whose funds were diverted by Puri into the
account of his relatives include Hero Corporate Services (Rs
13.75 crore), OKS Sapantak (Rs 2 crore) and Satyam Auto (Rs 25
crore).
They also include 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).
Besides the entities named in the report, police further
said that they were trying to ascertain records of other firms
which had lost money in the fraud.
The scam was uncovered at Gurgaon branch late last month.
Police said efforts were also being made to find out
details of properties owned by Puri and his relatives.
Police have not being able to recover the iPad, a latest
electronic device, used by Puri to communicate with his
clients and store data, it said.
Although Puri is in police custody, all his three
relatives named in the report are absconding.
Meanwhile, the local court extended the police custody of
Puri's alleged accomplice Gupta by seven days till January 15.
Police sought extension of Gupta's remand as they were
yet to recover Rs 3.94 crore and a car from the accused.
Gupta was Associate Vice President of Hero Corporate
Services and was reported to have received Rs 20 crore from
Puri for investing Rs 250 crore belonging to Hero Group
companies and promoters in fake schemes.
Police on January 3 arrested Gupta under the section 120B
of the Indian Panel Code that deals with criminal conspiracy.
In another development, Puri's father Raghuraj Puri filed
an application for anticipatory bail which will come up for
hearing on January 12. PTI