Indian police said on Wednesday they had registered a case against the chief executive of US banking giant Citigroup and other board members over claims of fraud at a local Indian branch.
The case was registered after an Indian businessman who had lost money in the fraud filed a complaint against Citigroup’s Indian-born CEO Vikram Pandit and 10 other senior managers of the global financial services group.
“Falsification of accounts, breach of trust and criminal conspiracy are the key charges levelled against the 11 bank officials,” senior police officer S.S Deswal told AFP. Under Indian criminal law, police register a case to start an investigation before deciding whether to press charges.
Last week, police arrested Shivraj Puri, a bank employee in a Citibank branch in Gurgaon, a satellite city outside New Delhi, who is accused of duping investors and diverting more than four billion rupees (88 million dollars).
The businessman who filed the complaint against the Citigroup executives, Sanjeev Aggarwal, claims that the fraud “points to a systemic failure” in the company.
“The entire organisation is responsible, hence I have named (chief executive) Pandit,” Aggarwal, who says he has lost his life savings, told The Indian Express newspaper.
Responding to Aggarwal’s complaint, Citibank in an emailed statement said that “claims against senior executives are completely without basis and we intend to contest them vigorously.”
It added: “Citi will continue to work with the authorities on this investigation.”
The US-based executives named include Pandit, chairman William R. Rhodes, chief financial officer John Gerspach and chief operating officer Douglas Peterson.
Local commentators said they did not expect the senior US executives to face prosecution.
“It is a local case with a very little chance of the main office or top executives of the bank being directly or indirectly involved in the scam,” D.H.P Panandiker, an independent economist in New Delhi, told AFP.
Earlier this week, police arrested Sanjay Gupta, a senior manager at India’s biggest motorcycle maker, Hero on charges of criminal conspiracy in the fraud case.
The company has launched an internal enquiry and it said Wednesday that two other employees working in the accounts department could have participated with Gupta in the Citibank scam.
“Two employees… have also been identified to have been in possible collusion with Sanjay Gupta and Citibank employees,” the company said in statement reported by the Press Trust of India.
“They have been sent on leave with immediate effect by the company,” it added.
Deswal, who is leading the police investigations in the case, said the alleged fraud came to light when one of the bank’s clients mentioned the scheme to a senior manager.
Investigations have shown that employees at the bank in Gurgaon, where many international companies are based, had forged letters to divert funds and sell fake investment schemes.
“We are still trying to understand the exact modus operandi as money was diverted through several channels,” Deswal said, adding: “Many more arrests could be expected in the case.”
In November, several executives of state-run banks and an insurer in Mumbai were also arrested over alleged bribes totalling more than 200 million dollars paid to sanction loans to property developers.
There’s evidence that climate activism could be swaying public opinion in the US
Climate activists walked out of classrooms and workplaces in more than 150 countries on Friday, Sept. 20 to demand stronger action on climate change. Mass mobilizations like this have become increasingly common in recent years.
I’m a scholar of environmental communication who examines how people become engaged with solving dilemmas such as climate change, and how activism motivates others to take action. A new study I worked on suggests that large rallies, such as this youth-led Climate Strike, could be influencing public opinion.
‘I’ve seen smarter cabinets at IKEA’: See the most memorable signs from the global climate strike
"Why should we go to class if you won't listen to the educated?" one homemade sign asked.
With millions marching to demand bold climate action in more than 150 countries around the world on Friday, a number of sentiments expressed on homemade signs and through other demonstrations captured the world's attention.
An estimated 400,000 people attended strikes across Australia to start off the day of action. The Australian Conservation Foundation shared a video of some of the young people, including one marcher who proclaimed, "You'll die of old age, we'll die of climate change," addressing the world leaders who climate scientists say are not working nearly fast enough to end fossil fuel extraction and the resulting carbon emissions which are causing global warming, rising sea levels, droughts, and other extreme weather events.
Trump felt free to ask for Ukraine election interference after Mueller let him off the hook: Wired reporter Garrett Graff
On CNN's "New Day Weekend," author and commentator Garrett Graff noted that President Donald Trump's attempt to push Ukraine to investigate former Vice President Joe Biden came right after former special counsel Robert Mueller's investigation of Russian interference in 2016 ended — and suggested the two were related.
"You know, Garrett, there may be some people thinking 'Gosh, we just got out of the whole scenario with the Mueller report. Now we have this again,'" said anchor Christi Paul. "Do you get a sense that there are people looking at this saying 'I think I have confidence in the 2020 election?'"