CA firm to submit report on Citi fraud soon

praveen (Chartered Accountant) (6971 Points)

10 March 2011  

A Chartered Accountant firm hired to help crack the460 crore (Rs 4.6 billion) fraud at a Citibank branch will submit its report soon, says Gurgaon police.



Soon after the arrest of the alleged mastermind Shivraj Puri, relationship manager at Gurgaon branch, the Police had hired a CA firm to study money trail.



The firm would soon submit its report, Gurgaon Police Commissioner S S Deswal said. Meanwhile, Citibank has terminated services of eight employees including Puri in connection with the fraud.



"Following disciplinary procedures, the services of a few employees of our Gurgaon branch have been terminated," a Citibank spokesperson had said.



Several corporates and high-networth individuals (HNIs) lost460.91 crore in a scheme floated by Puri which promised high returns. Puri fabricated a circular of the Securities and Exchange Board of India [ Images ] to lure people into investing into accounts held by his accomplices Premnath, Shiela Premnath and Deeksha Puri.



Besides the Police enquiries, the Investigation Directorate of the Income Tax has initiated proceedings to track the source of deposit of the affected persons in Citibank. Even, the Directorate of Enforcement has initiated enquiries in the matter.



Employees whose services were terminated were reportedly under suspension ever since the fraud came to light. Other employees whose services have been terminated included Gurgaon branch manager, Amit Zalpuri, Assistant Sales Manager, Kapil Chabra and Branch Investment Counsellor Nitin Chawla, sources said.



However, names of the employees whose services were terminated could not be ascertained from Citibank. At the same time, Citibank is undertaking the process of compensating its customers who have lost money in the scheme floated by Puri.

 

Source : https://www.ndtv.com/article/gurgaon/citibank-fraud-8-employees-fired-90521?pfrom=home-Cities