Citibank US Top Brass at HQ named in Indian FIR by Top Investor Sanjay Aggarwal of Helion Funds in the Gurgaon Branch Wealth Management Fraud…stirs angry memories of this Bank

This Wealth Managment Fraud of over Rs 300 Crs, claimed to be the ingenuity of a relationship manager of Citibank at it’s Gurgaon Branch in Delhi is now being widened in investigation scope to include even the role of the World Head, Mr Vikram Pandit and Chairman,Mr William Rhodes and ten other Bank Officers in New York.

They have been named by Individual Investor Mr Sanjay Aggarwal in a FIR filed at the Gurgaon Police Station.Mr Aggarwal is the co founder of India’s leading BPO Daksh and currently is the MD of Helion Venture Partners….one can meet him in a fireside chat at the Angel Investors Forum to be held on January 20,2011 in New Delhi    

Mr Aggarwal has lost Rs 32.43 crs in the Fraud committed in the Wealth Managment Division of Citibank in their Gurgaon Branch…..his FIR includes the names of Citibank’s top brass…his contention is that the fraud could not have been committed without the knowledge of the Bank and it’s top officers…bank has to take responsibility for the fradulent actions of it’s officers involved in this fraud as a bank is expected to have checks and balances in place to prevent such frauds occuring

Mr Aggarwal stirs angry memories that I harboured against ‘Citibank’…On November 23, 2008 I had even blogged on  several incidents and experiences with the bank that that created these sour memories over the years

‘citi never sleeps’…well ! Citigroup should !

Sunday, November 23rd, 2008

Citibank must have spotted that something was amiss when some Investors or Potential Investors approached it on the Bank offering Investment Proposals with a higher rate of Return….they rubbish the FIR including the names of the Banks Top Brass as being baseless…the criminal charges are strong against the bank and it’s top honchos…cheating…criminal breach of trust….misappropriation of funds 

My Point is simply this….Citibank is responsible……if checks and balances and internal control systems and processes were in place then this fradulent situation would not have been created….that it has, points to either of two situations…both in which the bank has to be responsible

  • strong checks and balances were not in place…in which case Citibank is responsible
  • checks and balances were in place but there has been collusion within the bank itself to perpetrate this fraud….difficult to believe that one guy could have done it all !…..if this is true then there are no checks and balances in place !……in any case Citibank is responsible for employees actions while being employees and representing the bank…this is the point under debate…..ofcourse the bank  will take action against these employees….but can it escape responsibility ?

Investors are dealing with the Bank and not just it’s employee and relationship manager,Shivraj Puri who has been accused of masterminding this fraud….of course it is too stretched to say Mr Pandit and Mr Rhodes who reside in USA and preside over the whole Bank were aware of this Operation in question at their Bank’s Gurgaon branch…the question raised by Mr Aggarwal’s accusation in his FIR is one of ultimate responsibility read more

“Corruption is our Birthright “….I’m Amused…but I’m Not !

What’s Integrity to an Opportunity !…across the spectrum from Agriculture to Business to Utilities to Sports to Social and Public Services to Government Spending to Banks and Brokers….scams abound

Our Nation has plunged into a Morality Abyss…we need to rebuild our People and Institutions from fresh…because Corruption,Communalism and Criminality are so deeply embedded in our psyches that they are now our mindsets….we need to be purged…we need to be reborn 

“Corruption is our Birthright”…seems to be our mantra…..Big Corruption gives birth to Baby Corruption….and Baby Corruption grows Big….and the Cycle continues….and children of Politicians become Politicians…and their children in turn….

Big Corruption…..ABC…Adarsh/A Raja….Bofors…..Commonwealth Games……with Ministers proclaiming and defending action saying they were only following precedents and policy and procedures laid down by predecessors !…Blatant & Brazen Loot….Heaven help us ! 

Baby Corruption….Poilce and RTO…had an interesting conversation with a Mumbai Traffic Poilceman…”I’m willing to lay down my Life in my Line of Duty….but who’ll lay down Life for these corrupt MCs & BCs that we have as Commissioners in our Senior Police Force !”…the guy was sadly and badly demoralised…In another instance RTO Tout ,in cahoots with those inside RTO,asked for Rs 500 to simply delete the Bank Financiers name from the Car Registration Book after Loan was repaid and Bank had given an NOC….refused …so my Man was made to come four times to the RTO for this simple job…under pretext that some document was missing,or the counter is closed for the day,or that the work will take a day more…..   

That Big Corruption is more wrong  than Baby Corruption can be argued on Scale but not on Concept…Corruption is Corruption…Period….Today you’ll do it for Rs 100…Tomorrow you’ll do it for Rs 100 crs ! 

Self Regulation works only where Morality is intact…so we need External Regulation…but by appointing pliable Heads even these Regulatory and Investigative Agencies become compromised…End Result is that there is no quick and fair punitive action to serve as a strong deterrent….there always seems to be a way out !…and a price to be paid for it !   read more