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Citifraud: Senior Hero exec held

india Updated: Jan 03, 2011 23:46 IST
HT Correspondent
HT Correspondent
Hindustan Times
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In a dramatic turn of events, Gurgaon Police arrested Sanjay Gupta (45), associate vice-president (AVP) of Hero Corporate Services Limited, on Sunday night in connection with the R300 crore Citibank customer fraud case.

Gupta was produced in a local court on Monday and remanded to custody.

This is the first senior-level corporate executive arrest and more could follow, the police said.

Shivraj Puri, Citibank relationship manager and prime accused in the fraud, who was arrested on December 30, had named Gupta as a close friend as well as the mastermind of the entire scheme.

Apart from Puri naming Sanjay Gupta in the case, police said they too had gathered incriminating documents proving Gupta's direct involvement.

Investigating officer Babu Lal told the court that Gupta got commissions from Puri. “During investigations we have found R14.95 crores in one of Gupta's accounts and R4.95 crores in another, all accumulated in the last six months," Babu Lal said.

Police officials involved in the investigation said Gupta knew the money he was investing on behalf of his company was going to brokerage companies.

“Shivraj Puri in his interrogation revealed he had told Gupta about the fake SEBI letter. Gupta also took commissions from Puri for the Hero group's investments he was making,” SS Deswal, Gurgaon Police commissioner, said.

According to sources Gupta deposited R250 crore on behalf of various companies of Hero group in the account of Premnath, one of the fake accounts Puri had set up to siphon off bank customers' money.. “Investing R250 crore, Gupta earned nearly R20 crore as commission,” Deswal added.