Project on Risk Management

Team No.-4
 Members
 Key Highlights of CITIBANK Scam
 Citibank is caught in an estimated Rs 400 crore fraud
and forgery at its retail banking unit in Gurgaon.
 The fraud is a handiwork of Shivraj Puri, a relationship
manager at the branch who is accused of luring high
net-worth individuals & companies such as Hero
Corporate Services Ltd. to invest in bogus schemes by
promising of unusually high returns of 20-24 %, which
he falsely substantiated with a forged letter from
market regulator SEBI.

 The bulk of the funds were invested by Puri in Nifty

options, which are derivative products with the NSE
benchmark index Nifty as the underlying asset & also in
real estate companies for buying properties.
 Shivraj Puri has been investing in the stock market
through brokerage firms Religare ,IIFL and Bonanza.
Some money was also routed through Norman Martin, a
firm owned by his relative. 

 Police also alleged that Puri used to give fake receipts

and bank statements to his clients to mislead the
investors. The employees claimed the products were
authorised by Citibank’s investment product committee
and used forged bank documents and letterheads to
prove the same 

 One HNI Client --- Helion Advisors Pvt. Ltd.

Mr. MD Sanjeev Aggarwal, who lost about Rs 33 crore
has filed an FIR on the fraud, in which he accused the
top officials of Citibank NA, including country head, of
being the perpetrators.
 HNI CLIENTS AMOUNT

HeroExports Rs 97 crore

Munab Braej Rs 71 crore

Helion Advisors Pvt Ltd Rs 33 crore

Aero Infratec Rs 25 crore

Satyam Auto, Rs 25 cr

Hero Corporate Services Rs 13.75 cr

Karopat Pad Rs 8 crore

Rekha Munjal (), Rs 5 crore

Sunil Kant and Sons Rs 3 crore

Munjal Investments Rs 2.5crore

OKS Sapantak Rs 2 cr
 Internal
Control
Environment

Objective
Monitoring
setting

Information & Event

Communication Identification

Control Risk
Activities Assessment

Risk
Response
Internal Control Environment
 According to senior police officers investigating the
case, Associate vice-president (AVP) of Hero
Corporate Services, Sanjay Gupta had allegedly roped
in a deputy manager, Ganpat Singh, and another
assistant general manager, Gaurav Jain, to get more
clients for Citibank relationship manager Shivraj Puri’s
fraudulent schemes.

 Accordingly, they formed a firm and opened an

account in the name of G2S. Shivraj Puri had promised
Gupta Rs 20cr as commission . He started another
investment firm, BG Finance, where he allegedly
parked a large part of the commission amount.
Risk Assessment
 Security against non-payment or default

 Bank guarantee

 Disclosure of HNI Investment in which

sectors?
Control Activities

 KYC norms

 Insurance of money given by HNI

 Promissory notes
Monitoring
 Committee to monitor HNI deals

 Monitor the Returns against investments

 Legal Documentation & framework

 Thank You