A Gurgaon court on Thursday rejected anticipatory bail plea of Raghuraj Puri, father of Shivraj Puri, alleged mastermind of the Rs 400-crore (Rs 4-billion) Citibank fraud.
After two days of investigations in the multi-crore financial fraud at Citibank, the Gurgaon police have found that the main accused, Shivraj Puri, who was working as the relationship manager, had opened 18 bank accounts in his and his family members' name.
"I believe it is important for an investor to not put all their eggs in one basket, and also diversify in terms of asset class," says Sanjeev Aggarwal.
The police have sought details of transactions undertaken by Citibank fraud mastermind Shivraj Puri from premier bourse National Stock Exchange.
Most banks follow lax selection and due diligence procedures as long as relationship managers bring in the money.
Widening the ambit of its probe, the police has sought information from the National Stock Exchange (NSE) about investments made by the alleged mastermind of the Citibank fraud, Shivraj Puri, even as it tried to locate his iPad, which may contain crucial data.
Several depositors were duped in the Rs 460.91-crore alleged fraud engineered by Shivraj Puri, a Global Wealth Manager of the bank working at its branch in Gurgaon.
Another accused Rajendra Chand has also been remanded in police custody for two days. chief judicial magistrate Devender Singh remanded Raghuraj Puri in two days of police custody after public prosecutor argued that the police needed to get more information.
High net worth investors (HNIs) caught in the Rs 405-crore fraud at Citibank's DLF Phase-II branch in Gurgaon, have recovered their money, with the bank refunding the principal amount, pending investigations.
"The modus operandi was simple: Divert the money to the stock markets. It seems it was a structured product, which most people don't understand, as it could be a pure equity or blended product."
These investors were lured into investing funds on promise of high returns by Puri, the main accused in the Rs 300-crore (Rs 3-billion) scam.
Thanks to its indemnity cover, Citibank may not have to provide for the alleged multi-crore fraud by Shivraj Puri, the relationship manager at its Gurgaon branch.
The alleged mastermind of Rs 300 crore (Rs 3 billion) Citibank fraud, Shivraj Puri, invested most of the funds raised from corporate entities and high networth individuals in derivative instruments in stock markets.
Mastermind of Citibank fraud Shivraj Puri took an exposure of whopping Rs 1.13 lakh crore (Rs 1.13 trillion) in the equity market using Rs 236 crore (Rs 2.36 billion) of 51 high net-worth individuals and corporates and lost everything following decline in stock markets, says a Sebi report.
A Chartered Accountant firm hired to help crack the Rs 460 crore (Rs 4.6 billion) fraud at a Citibank branch will submit its report soon, says Gurgaon police.
Citibank has started refunding money to those who had invested in the fraudulent scheme run by its relationship manager at Gurgaon, Shivraj Puri. Many entities of the Munjal family, victims in this regard, got back their money in recent days.
Citibank is working on a compensation package for customers duped by its relationship manager Shivraj Puri.
Police have so far registered two FIRs and received around 40 complaints from high net-worth clients.
A local court on Wednesday extended police remand of Shivraj Puri, the main accused in the alleged Rs 400 crore (Rs 4 billion) Citibank fraud, by 2 more days till January 14 as police is yet to recover iPad considered to be vital evidence.
Those with plans to enter the wealth management business want to first put in place robust processes.
A local court on Thursday extended police remand of Shivraj Puri, the main accused in the Rs 300 crore (Rs 3 billion) Citibank fraud, by 6 days as police sought time to recover an iPad used by the mastermind to communicate with his clients.
Shivraj Puri, the main accused in the estimated Rs 400 crore (Rs 4 billion) fraud at Citibank's Gurgaon branch, was remanded in 14 days' judicial custody by a local court on Friday.
Both the Securities and Exchange Board of India and the Reserve Bank of India were trying to find if Puri was also involved in front-running and used his information on positions taken by Citi for placing bets, said an official with one of the regulators.
A key question in the minds of people who have been defrauded, including the Hero group, is why Citibank went to police when the matter was close to being resolved? Companies discovered the fraud around a month back and 'the matter was almost resolved', with Shivraj Puri undertaking to return the money, say people in the know.
In April 2015, the regulator issued a show cause notice to the bank for alleged violation of portfolio managers' norms with respect to one relationship manager.
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