Citi working on 'fair compensation' for affected customers

Mumbai, Jan 15 (PTI) Citibank, which has been hit by a Rs
400 fraud at its Indian branch in Gurgaon city, on Saturday
said it is reconciling its accounts and working out a "fair
compensation" for those customers affected by it.
Citibank, a major international bank, is the consumer
banking arm of financial services giant Citigroup
headquartered in New York.
"This process will happen over a period of time. We
would like to thank our customers for their patience and
co-operation," the bank said in a statement.
"We have since been in contact with our impacted
customers and are committed to safeguarding our customers'
legitimate interests," it added.
The global banking major said that it has been
reconciling amounts involved with impacted customers to arrive
at the compensation package.
"We will also continue to support the investigating
authorities fully until this matter is resolved and brought to
its logical conclusion," the statement said.
The bank has been in touch with its impacted customers
and is fully committed to safeguarding their legitimate
interests, it said in a statement here.
"As we have stated earlier, we identified suspicious
transactions at our Gurgaon city Branch in early December and
immediately reported the matter to law enforcement and
regulatory authorities," the statement said.
One of its employees, Shivraj Puri, is accused of luring
40 high net-worth individuals and corporate entities to invest
in a bogus investment scheme on the pretext of high returns,
while diverting the funds to the stockmarket.
Victims of the fraud include big names such as the
promoters of the Hero Group (Rs 250-crore) and Helion Advisors
Managing Director, Sanjeev Aggarwal (Rs 33-crore).
On Friday, Puri was remanded to 14 days judicial custody
(till January 28) by a local court. He was initially taken
into seven days police custody on December 30 last year after
the scam was detected.
Later, the police remand of Puri was extended for six
days on January 6 and then, subsequently, for two days on
January 12. PTI JJ
HMI


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