Hero Group’s investment in Citi fraud?

Naveen Munjal of Hero Exports alone had given around Rs 50 crore to Puri for further investment,the officer said.

Neither Munjal nor group spokesperson could be contacted.

The alleged fraud which could run into Rs 400 crore was detected at Citibank’s Gurgaon branch.

The swindling was detected at the Gurgaon branch. An FIR for cheating and forgery against Puri and three others was lodged and 18 accounts having close to Rs 4 crore frozen were frozen.

The fraud is said to be a handiwork of Puri,a relationship manager at the branch,who allegedly sold investment products to high networth clients claiming that they would generate unusually high returns.

It is also alleged that Puri showed a forged notification of market regulator Securities and Exchange Board of India for obtaining funds from customers.

He also allegedly routed the fund garnered from HNI customers to stock market through brokerage firms. He is also accused of claiming that these products were authorised by the bank’s investment product committee.

Citibank had 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,” the lender had said.