SINHGAD INSTITUTE OF BUSINESS MANAGEMENT

MUMBAI

An Assignment on
Analysis of Financial Statement
CITIBANK SCAM

Prepared By

Riddhish Chhaya 05
Aditi Damle 07
Aditya Jalgaonkar 13
Madhumita Nardekar 20
 Citi bank-300 crore gulped down the throat.

In the recent of the financial controversies rocking the country

citibanks 300 crore scam is the new entrant.
What is the scam all about?
The scam is about the mastermind Shivraj Puri who duped high net
investors of their money.it is said that Sanjay Puri misappropriated
32.43 crores that he invested in the banks savings account. it is said
that going by the advice of the relationship manager one of the
account holder Mr.Agarwal opened a wealth management account.
they alleged that the size of the portfolio instead of increasing was
showing a decline. It was also alleged that the bank failed to detect
the decline in the portfolio size and also the customers safety. He said
most of the financial transactions take place in the Citibank's account
either through real time gross statement (RTGS) or demand drafts or
common transfer forms and senior bank officials are in the know of
these transactions. 
Agarwal said he could never doubt that Puri was diverting their
funds to his own accounts and not investing in preferred schemes as
they were receiving portfolio statements through the Citibank e-mail
account of Puri. 
A scrutiny of the records revealed that the bank statements that they
were receiving from Puri were different from their actual investment.
Nearly Rs 32.43 crore were missing from Aggarwal's accounts when
he received the actual statement. While the statements generated by
Puri showed that Aggarwal and his wife had Rs 46 crore in their
accounts, the final statement revealed that they had only Rs 15 crore
in balance. Moreover, there were reports of customers revealing that
the bank was running some scheme that promised a very high interest
rate. There was no such schemes running which led to an internal
inquiry, according to the senior investigating officer.

Puri has also been charged with producing forged circulars from the
Securities and Exchange Board of India (Sebi) to con people into
investing in a non-existent scheme and making people believe that the
scheme was only available in that particular branch. The Gurgaon
police who is investigating the case said that major clients were
conned and the fact that Sebi had not released any form of this sort
was found.

Police reports say that Puri managed to get large deposits and made
fake bank slips and statements for the customers. Puri siphoned off
the money to invest in the stock market. Citibank has intimated the
Reserve Bank of India and Sebi about the fraud.

In this manner there were many who were duped and the amount of
duped money is around 300 crores.