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Citi fraud: Victim says bank must compensate

Jan 05, 2011 06:00 PM IST India India

New Delhi: The first complainant in the Rs 300 crore Citibank fraud, has described it as a systemic failure and has alleged the fraud is not just a bank issue, and multiple parties might be involved.

Sanjeev aggarwal, MD, Helion Advisors says, "I came to know about this a month back, when we got a very cryptic call from Citibank officials, stating that there is a problem in Shivrajs' account.

That's how corporate honcho Sanjeev Aggarwal got to know that he had been duped by Shivraj Puri.

Aggarwal, the managing director of a private firm had opened a wealth management account with the Gurgaon branch six years ago and since then he had invested approximately forty crore rupees.

Aggarwal says bank officials made him sign blank documents which were made to transfer money into accounts.

Bank officials made him sign on blank documents which were then used to transfer money into their accounts and he was sent inflated statements by the bank.

And the bank didn't compensate him when the fraud came to light.

While the police have registered an FIR based on Puri's complaint against 11 Citibank officials including its global CEO Vikram Pandit they say that top officials of Citi group have no connection with Puri or this fraud. but they do say that officials of the Gurgaon branch where Puri worked should be held accountable

But Aggarwal is sticking by his statement.

Aggarwal said, "My belief is that its a systemic failure and everybody has to take responsibility".

The net seems to be widening. Days after arresting Sanjay Gupta a top official of hero corporate services, the police are now looking at the involvement of two other officials from the Hero group.

The police and other government agencies are now trying to trace where the money collected by Puri and others was invested.

This story is far from over - more arrests are likely over the next few days.