Income Tax, Directorate of Enforcement investigate Rs 460 crore Citi fraud case

The government today said Director of Income Tax and Directorate of Enforcement (ED) have initiated investigation in Rs 460 crore Citibank fraud case.   “The Investigation Directorate of the Income Tax has initiated necessary enquiries as far as the source of deposit of persons in Citibank is concerned,” Minister of State for Finance S S Palanimanickam told Rajya Sabha in a written reply.

The Directorate of Enforcement has initiated enquiries in the matter, he said.

Several depositors and high-networth individuals (NHIs) lost Rs 460.91 crore fraud which was engineered by a Citibank’s Global Wealth Manager Shivraj Puri who was working at Gurgaon branch of the bank.

Palanimanickam further said, to reduce or prevent the incidence of frauds, RBI has been sensitising banks from time to time about common fraud prone areas through issuance of modus operandi circulars on various types of frauds.

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