More investors surface in bank fraud case

More investors claiming to have lost money in the Rs.4000000000 fraud at Citibank's Gurgaon branch have surfaced, taking the total number of such entities to about 40, police sources said on Monday. Most of the investors have approached the police and their complaints are likely to be clubbed together for investigation, sources said. As per the latest estimates, about 40 investors -- including the promoters of Hero Group and high net-worth individual Sanjeev Aggarwal, Managing Director of Helion Advisors --lost money in the Ponzi scheme floated by Citibank Relationship Manager Shivraj Puri. The investors have submitted their claims and stated their positions, sources said, adding that out of the 40 investors, nearly 20 are corporate entities. Until now, only one HNI client – Mr. Aggarwal, who lost about Rs.330000000 -- had filed an FIR in which he accused the top officials of Citibank NA, including the country head, of being the perpetrators. Based on his FIR, the police will investigate if there is a criminal conspiracy on the part of the bank, sources said, adding that a few officials of the Gurgaon branch will also be questioned. The entities whose funds were diverted by Puri into the accounts of his relatives include Hero Corporate Services (Rs.13.750000000), OKS Span Tech (Rs.20000000) and Satyam Auto (Rs.250000000). Further, Mayar Infratech (Rs.240000000), Spaid (Rs.620000000), Karopat Pad (Rs.80000000), Sunil Kant and Sons (Rs.30000000), Aero Infratec (Rs.250000000), Hero Exports (Rs.970000000), Rekha Munjal (Rs.50000000), Munjal Investments (Rs.2.50000000) and Munab Braej (Rs.710000000) fell prey to the scam. In another development, the police are likely to question the co-accused in the fraud case, Premnath and Shiela Premnath, who are the maternal grandparents of Puri. Meanwhile, SEBI officials have returned to Mumbai after a second round of investigations and may come again, sources said. “SEBI is investigating as per its own agenda and the police are sharing information with the capital market regulator,” sources said. Asked about Puri's iPad, believed to be crucial evidence in the case, sources said efforts are on to retrieve it. They added that the police have already obtained all the required documents and more evidence is being collected. Sources also said that Sanjay Gupta, Assistant Vice-President of Hero Corporate, another accused in the case, had received a Rs.200000000 commission from Puri for bringing investment into the Ponzi scheme. During interrogation, Gupta disclosed that he paid Rs.9600000 as commission to Rajiv Khanna, Rs.5.3500000 to Bharat Goel and Rs.53.500000 to Ashok Goel. These are officials of Hero Exports that helped divert their company's funds. Hero Exports invested Rs.970000000 in the scheme floated by Puri. Gupta also told the police that the account of BG Finance in Axis Bank was jointly owned by him and his wife Archana Gupta and a commission of Rs.14.950000000 was deposited in it by Puri. Of this, Gupta invested Rs.7.50000000 in the stock market through Puri, sources said. Sources also said that while seeking an extension of Gupta's remand the police had argued in court that custody was required so they could arrest his accomplices. - PTI