Hero Group says its a victim of Citi fraud | business | Hindustan Times
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Hero Group says its a victim of Citi fraud

business Updated: Jan 03, 2011 13:16 IST
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Hero Group on Friday admitted that it is a victim of the Citibank fraud in Gurgaon, but dismissed reports that either Hero Honda Motors Chairman Brijmohan Lal or his son Pawan Munjal have anything to do with this matter.

In the midst of reports that the Hero Group may have invested a huge amount with Shivraj Puri, the relationship manager in Citibank's Gurgaon branch who is said to be the mastermind behind a Rs 300 crore fraud, the group issued two statements to clarify the position.

"Some of the Hero Group entities, along with some others, are victims of the fraud conducted through one of the Citi branches in Gurgaon," Hero Group said in a statement.

An enquiry is in progress and the next steps will be decided post enquiry, it added.

However, repeated attempts to obtain details of the group's exposure in the cheating by the Citibank manager did not fructify.

In another statement, the group said neither its flagship firm Hero Honda nor its Managing Director Pawan Munjal have any involvement in the case.

"This is to put on record that contrary to reports in certain sections of the media, Pawan Munjal does not have anything to do with the ongoing Citibank issue," it added.

It said "neither Brijmohan Lal (Chairman of Hero Honda) nor Hero Honda Motors Limited have anything to do with this matter".

Shivraj Puri allegedly sold investment products to high networth clients claiming that they would generate very high return of 18%.

Puri was arrested on Friday and was sent to police custody for a week. He had allegedly collected money from High Networth Individuals (HNIs) in a fraudulent manner.

Gurgaon Police Commissioner S S Deswal had on Friday put the size of the fraud at around Rs 300 crore fraud -- Rs 200 crore of corporates and Rs 100 crore of individuals.