New Delhi, Dec 29: A banking fraud which could run into a whopping Rs 400 crore has been unearthed at leading multinational lender Citibank''s Gurgaon (Haryana) branch.
Gurgaon Police Commissioner S S Deswal said an FIR under sections of cheating and forgery against a bank employee and three others has been lodged and 18 accounts having close to Rs 4 crore frozen.
Sources said funds amounting to Rs 400 crore of 20 high networth customers has been siphoned off.
The fraud is said to be a handiwork of Shivraj Puri, the employee who is alleged to have sold investment products to high networth clients claiming that they would generate unusually high returns.
It is also alleged that Puri, who is named in the FIR, showed a forged notification of market regulator Securities and Exchange Board of India for obtaining funds from customers.
He is also accused of claiming that these products were authorised by the bank''s investment product committee.
The bank in a statement said, "We immediately reported the matter to all the relevant regulatory and law enforcement authorities. Identified suspicious transactions have been isolated and we are providing full assistance to the authorities in their investigations."
Sources said Puri allegedly sought deposits from high networth customers in lucrative schemes but transferred the funds to some fictitious accounts.
Funds amounting to Rs 400 crore belonging to about 20 customers were transferred to such accounts, they said.

Lastupdate on : Wed, 29 Dec 2010 21:30:00 Makkah time
Lastupdate on : Wed, 29 Dec 2010 18:30:00 GMT
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