Citibank''s compensation not to impact ongoing probe: Police

Posted By: Pti
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Gurgaon, Jan 17 (PTI) The police today said the decisionof Citibank to compensate victims of the Rs 400 crore fraudwill not impact the ongoing investigations against the accusedpersons as they face criminal charges.

"Even if Citibank has agreed to compensate all investorsin the scam, the criminal liability, if any, on the part ofCitibank official still stand," Gurgaon Police Commissioner SS Deswal said.

The global banking major had on Saturday said it wasreconciling its accounts and working out a compensationpackage for customers impacted by the Rs 400 crore fraud atits Gurgaon branch.

Puri, a Relationship Manager with Citibank''s Gurgaonbranch, is accused of luring 40 high net-worth individuals andcorporate entities to invest in bogus schemes by promisingunusually high returns, which he falsely substantiated with aforged letter from market regulator Sebi.

A multi-pronged probe involving the police, bankingregulator RBI and capital markets watchdog Sebi is currentlyunderway in the fraud case involving Puri.

Deswal said, "There are two part of the scam. One relatesto crime (fraud) and the other relates to bank procedures. Thecriminal part of the scam is being investigated by the policeand other bank procedural lapses are being looked after byRBI and Sebi."

He said the Police is also questioning local Citibankofficials as "there involvement (in the fraud) has still notbeen ruled out."

Victims of the fraud include big names such as thepromoters of the Hero Group (Rs 250-crore) and Helion AdvisorsManaging Director, Sanjeev Aggarwal (Rs 33-crore).

Other entities whose funds were allegedly diverted byPuri to the stock market include OKS Span Tech (Rs 2 crore),Satyam Auto (Rs 25 crore), Mayar Infratech (Rs 24 crore),Spaid (Rs 62 crore), Karopat Pad (Rs 8 crore), Aero Infratec(Rs 25 crore) and Munab Braej (Rs 71 crore).

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