The Gurgaon police on Thursday revealed that as many as 29 investors, including Hero Group entities, had invested Rs 316 crore in the fake investment scheme launched by suspended Citibank relationship manager Shivraj Puri.
According to the document submitted by the police in a local court, about Rs 170 crore of the total amount came from non-listed companies of Hero Group. Many of these firms are owned by relatives of Hero Group promoter BML Munjal.
The document — submitted by a police team led by ACP Dalbir Singh in the court of chief judicial magistrate DN Bhardwaj — stated the ongoing probe into the fraud case revealed that an investment to the tune of Rs 97 crore came from Hero Exports, Rs 25 crore from Satyam Auto, Rs 24 crore from Munjal Infratech and Rs 13.75 crore from Hero Corporate Services.
On December 31, Hero Group, in a statement, had said: “The exposure of the BML Munjal-controlled group is only Rs 28.75 crore. These investments were made as part of routine treasury operation in what seemed like perfectly legal investment options. Hero Group is disappointed to learn that it has become a victim of the fraud under question. The Group is taking appropriate action and has also initiated dialogue with relevant authorities and Citibank to recover its dues. This is to further clarify that Hero Honda Motors Ltd, a part of the Group, has no involvement in any of these investments.”
The police told the court that they need an extension of Puri’s remand, because details of investments by 15 other corporate entities and HNIs need to be collected. Fraud victims