Citibank fraud: Investors under Tax Dept lens

The Income-Tax Department has sent notices to the investors who have been allegedly duped by Mr Shivraj Puri, the main accused in the Citibank Gurgaon branch fraud case.

Over 20 Citibank customers, including certain Hero Group entities, had parked funds in a fraudulent scheme framed by Citibank Relationship Manager, Mr Shivraj Puri.

Notices have been sent to certain investors and they will now have to furnish information to the tax department on the funds invested in the fraudulent scheme, official sources said. This would help the tax department ascertain whether the funds invested were tax-paid or not. The Gurgaon police estimates the total amount involved in the fraud at Rs 400 crore.

Both Mr Puri and Mr Sanjay Gupta, co-accused in the case, were recently remanded to judicial custody. Citibank said on Saturday last, that it had begun working out a “fair compensation” for customers impacted by the alleged fraud at its Gurgaon branch.

Meanwhile, the Income-Tax Department has not ruled out the possibility of it approaching Citibank for information on this case. This would depend on the response that the tax department would receive from those investors to whom notices have been sent, sources said.

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