Bail plea of Citibank fraud co-accused rejected

A city court Tuesday rejected bail plea of Sanjay Gupta, a co-accused in the Rs 400 crore Citibank fraud.

Gurgaon: A city court Tuesday rejected bail plea of Sanjay Gupta, a co-accused in the Rs 400 crore Citibank fraud.

The bail plea was rejected by Chief Judicial Magistrate DN Bhardwaj.

Gupta and the mastermind of the fraud Shivraj Puri are currently in judicial custody and will be produced before the court again on January 28.

Gupta, who was a senior official of Hero Corporate Services, was arrested on January 3 in connection with the fraud that affected about 40 corporate entities and high networth individuals (HNIs).

He allegedly received about Rs 20 crore commission from Puri in lieu of arranging investments.

Puri, a Relationship Manager with Citibank's Gurgaon branch, is accused of luring HNIs to invest in bogus schemes by promising unusually high returns, which he 'substantiated' with a forged letter from market regulator SEBI.

A multi-pronged probe involving the police, banking regulator RBI and capital markets watchdog Sebi is currently underway in the fraud case involving Puri.

Sanjeev Aggarwal, one of the victims, had even named Citibank's global chief Vikram Pandit and other senior executives in his complaint.

However, Aggarwal yesterday said he would not pursue his complaint against the foreign lender.

But Gurgaon Police Commissioner SS Deswal said the police would investigate the case thoroughly and comments of Aggarwal have no legal value.

PTI

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