No regulatory failure in Citibank fraud: Montek

The Planning Commission does not see the Rs 300-crore Citibank swindling as a regulatory failure and said that fraud cannot be ruled out in any mechanism.

The Planning Commission does not see the Rs 300-crore Citibank swindling as a regulatory failure and said that fraud cannot be ruled out in any mechanism.

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"I don't see this (Citibank fraud) as a regulatory failure ," Planning Commission deputy chairman Montek Singh Ahluwalia told reporters.

"Individual problems always crop up. But I don't think that fraud can ever be ruled out. When it happens, you need to move quickly and take corrective action," Ahluwalia said on the sidelines of a Skoch summit in New Delhi.

The fraud at the Citibank's Gurgaon branch, involving diversion of depositors money into the stock market, was uncovered last week.

Several high networth individuals (HNIs), including promoters of Hero Group, were lured by Citibank's relationship manager Shivraj Puri, the main accused in the scam, into investing funds on promise of high returns.