Citibank's Rs 11 Crore Recovery: Unraveling the Shivraj Puri Fraud

The Enforcement Directorate (ED) has announced the restoration of funds amounting to Rs 11 crore to Citibank, linked to a fraud case involving former employee Shivraj Puri. The incident stems from a 2010 scam where Puri duped customers at Citibank's Gurugram branch into investing in fictitious high-return schemes, amassing over Rs 302 crore.

Shivraj Puri, who was convicted by a local court in February 2014, passed away in 2022 while incarcerated. Citibank had previously compensated the defrauded investors by settling claims worth Rs 302.37 crore. Post compensation, the investors transferred their rights to Citibank, making it the legitimate claimant of the attached funds.

The restoration of Rs 11 crore was sanctioned by a special PMLA court following an application by Citibank. The ED had earlier attached assets worth Rs 30 crore under the Prevention of Money Laundering Act. Puri fraudulently opened bank accounts and misled clients with handwritten deposit receipts, claiming bank-sanctioned investment schemes that did not exist.

(With inputs from agencies.)