Two more executives may be involved in Citibank fraud: Hero

GURGAON - After suspending its associate vice-president Sanjay Gupta for his alleged involvement in the Rs.300 crore Citibank scam, Hero Group said Wednesday it has identified two more executives who might also be involved in the fraud.

“Following an initial internal enquiry, two employees - Ganpat Singh and Gaurav Jain - working in the accounts department have also been identified to have been in possible collusion with Sanjay Gupta and Citibank employees, Hero Group said in a statement.

“They have been sent on leave with immediate effect by the company, it said.

Hero Group, which has admitted Rs.28.75 crore exposure to the scam, said it was doing an internal enquiry and would take appropriate action accordingly.

“Further appropriate action will be taken after the final outcome of the enquiry, the statement said.

Sanjay Gupta, who is also chief financial officer of Hero Corporate Service Ltd (HCSL), was arrested Monday for his alleged connivance in defrauding Citibank customers, including his own company, of an estimated Rs.300 crore.

He was later sent on a five-day policy remand by a court.

The Hero Group official used to lure corporates into depositing money in fraud mastermind Shivraj Puri’s scheme.

Gupta was instrumental in HCSL investing Rs.250 crore in the fraud scheme. He was paid Rs.20 crore as commission by Puri, Citibank’s relationship manager, police said Monday.

HCSL manages the Services Businesses of the Hero Group, which include Real estate, Financial services, Information Technology-enabled services, Consulting & Advisory, Integrated Learning & Education businesses.