Citibank's Vikram Pandit won't be questioned: Gurgaon police

Gurgaon: After one of its big investors filed an FIR naming Citibank CEO Vikram Pandit, and other senior officials, in the Rs 300 crore scam, the Gurgaon police have said they will not be calling Citibank's top bosses for questioning.

The decision comes after Citibank issued a statement in strong defence of its honchos, saying the person who filed the case is aware that Citi identified the fraud and immediately reported the matter to the regulators and law enforcement agencies.

It was on Citi complaint that the Gurgaon police lodged an FIR and are currently investigating the matter. "Citi will continue to work with the authorities on this investigation," the statement said. (Read: Citibank statement on Puri's claims)

Citibank's former manager Shivraj Puri, who worked at the bank's Gurgaon branch, has also allegedly told the police that the top rung of Citibank was aware of how his scam worked.

Puri was arrested last week and has been interrogated extensively by the Gurgaon police. On Tuesday, an investor named Sanjeev Aggarwal who was duped by Puri has filed an FIR with the Gurgaon police which names the Citi Group CEO Vikram Pandit, his Senior Advisor William Rhodes, and Douglas Peterson, the Chief Operating Officer of Citibank North America.

Puri reportedly promised corporate clients and High Net worth Individuals (HNIs) high-return schemes. He deposited their money in accounts in the names of his family and friends, and then diverted the money to the markets.

Hero executives who participated

After its Assistant Vice President Sanjay Gupta was arrested in connection with the scam, the Hero Group has reportedly identified two more employees who participated in the swindle.

"Ganpat Singh and Gaurav Jain -- working in the accounts department have also been identified to have been in possible collusion with Sanjay Gupta and Citibank employees," Hero Corporate Service said in a statement released today.

Gupta, who has been suspended as AVP of Hero Corporate Services, was arrested on Monday for criminal conspiracy. Hero said that it lost close to 30 crores because of investments made through Puri. However, the police says that Gupta invested close to 250 crores from different Hero Group companies with Puri. For his services, Puri paid Gupta close to 20 crores as kickbacks, according to the police.