New Delhi: Hero Group, one of India's largest business houses, on Thursday said that it is a victim of the estimated Rs 300 crore Citibank fraud in which some investors were allegedly swindled.
"Some of the Hero Group entities, along with some others, are victims of the fraud conducted through one of the Citi branches in Gurgaon," Hero Group said in a statement.
The group said an enquiry is in progress and next steps will be decided post the enquiry.
The fraud is said to be a handiwork of Shivraj Puri, a relationship manager at the branch, who allegedly sold investment products to high networth clients claiming that they would generate unusually high returns.
According to a police officer directly supervising issue, most of corporates, which invested the amount with Citibank manager Shivraj Puri, belonged to the Hero Group.
Naveen Munjal of Hero Exports alone had given around Rs 50 crore to Puri for further investment, the officer had said.
As per Gurgaon Police Commissioner S S Deswal, of Rs 300 crore involved in the fraud, Rs 200 crore belonged to corporates and Rs 100 crore to individuals.
The police have arrested Puri, who had allegedly collected money from High Networth Individuals (HNIs) in a fraudulent manner by promising unusually high returns of 18 per cent.
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