The probe in the multi-crore Citibank fraud case is opening a can of worms with the involvement of more senior officials of Hero Group coming to light.
Three senior executives, including the chief financial officer (CFO) of Hero Exports, allegedly received commission for routing investments in the stock market through the accused in the case — Citibank relationship manager Shivraj Puri and associate vice-president of Hero Corporate Service Limited (HCSL) Sanjay Gupta.
Hero Exports had invested Rs 97 crore while HCSL had put in Rs 13.75 crore through Gupta in the stock market.
In a startling revelation made in the court of chief judicial magistrate DN Bhardwaj on Saturday, the Gurgaon police claimed that Gupta, who is in custody, had admitted to having paid a total commission of Rs 1.54 crore to the executives.
In the written remand paper submitted in court, the police stated that Gupta had paid Rs 96 lakh to accountant Rajiv Khanna, Rs 53 lakh to senior executive Ashok Goyal and Rs 5.35 lakh to Hero Exports CFO Bharat Goyal.
A few days ago, two employees of HCSL, Ganpat and Gaurav Jain, had been identified for their suspected involvement in the scam.
The police said on Saturday that the duo had bought a residential plot worth nearly Rs 1.16 crore in Gurgaon with the siphoned off money.
Police officials said all the five executives are yet to be arrested and this was cited as the reason for extension of Gupta's police remand.
According to the investigating agency, Gupta confessed to have got Rs 20 crore as commissions from Puri which was deposited in his two current accounts — Rs 14.95 crore and Rs 4.45 crore in the name of BG Finance and G2S Management Consultants, respectively.