A city court extended the police remand of Sanjay Gupta, a senior official of Hero Corporate Service Limited (HCSL) and co-accused in the Rs 300 crore Citibank fraud case, by seven days on Saturday.
In its remand letter, the police claimed Gupta, associate vice-president, accounts, HCSL, had given more than Rs 3 crore to an associate and his custody was needed to recover that amount.
“My client has given all details he was aware of to the police in these five days. Now why do the police need him again,” said Pradeep Sharma, Gupta's lawyer.
Gupta was arrested on January 3 after Citibank relationship manager Shivraj Puri, main accused in the case, alleged that the Hero Group top official used to bring in corporate funds. The police later found that Gupta had even floated two companies to manage the heavy flow of money.
“During interrogation, Gupta revealed that he had kept R3.94 crore in cash. More than R3 crore was transferred to one Ravi Khanna's account. We need to recover this amount so we have sought Gupta's custody,” said a senior police officer.
Police sources claimed Gupta had also invested the amount he received as commission in some property.
“We need to identify that property and also recover a Zen car which he had bought from the commission money,” the officer added.
According to sources, Gupta had deposited R250 crore on behalf of various companies of the Hero Group in the account of Premnath, a relative of Puri.
“Gupta earned nearly R20 crore as commission for the deal,” the police officer further said. His role came under suspicion when Puri named him as an accused during interrogation. Since a large sum of the investment came from the Hero Group, Gupta was called for questioning two days before he was arrested.
Puri lawyer applies for anticipatory bail
The lawyer of Shivraj Puri has applied for the anticipatory bail of Raghuraj Puri, father of disgraced Citibank official Shivraj Puri, who has gone missing ever since the scam was unearthed.
According to police sources, Raghuraj played an active role in the scam and since eight of the 81 seized accounts are in his company's name, he is a crucial part of the investigation.
Gupta family claims
Of the R20 crore Gupta allegedly got as commission from Shivraj Puri for roping in corporate investors, he has reportedly returned R12 crore to the Hero Group after the scam came to light.
“He even put the property on sale which he had bought from the money,” said his brother who doesn't wish to be named.
Gupta’s family claimed that he has been framed in the whole incident and was co-operating in the investigation.
“He would have destroyed all the evidence had he wanted to clear his name. He wasn't aware of the fact that Puri is investing the money somewhere else. Getting commission is a standard procedure,” said Archana Gupta, Sanjay's wife.
“G2S Management Consultants and BG Finance were the main beneficiaries of all cross transactions that took place in this fraud. These two accounts belong to Gupta,” said a senior police officer.
Sources said that Gupta had floated these companies in May 2010.