ED likely to probe matter

Might register a case under Prevention of Money Laundering Act

Might register a case under Prevention of Money Laundering Act

As the Gurgaon police continues to investigate into Rs 350 crore fraud at Citibank, there are reports that the Enforcement Directorate (ED) might also step in.u00a0



Sources in ED said that senior officials after analysing developments in the case decided to seek an FIR from the Gurgaon police. "We have asked for a copy ofu00a0 the FIR as we had received directions from the Finance Ministry to look into the matter and monitor the case as it progressed and step in when necessary," said a senior ED official.

The ED will look into the possibility of registering a case under the Prevention of Money Laundering Act (PMLA), sources said. Under the PMLA, the directorate has the power to attach all movable and immovable properties of the accused, besides anything that appears to have been bought using the laundered money.

Sources said that if a money laundering case is filed, the directorate may also seek custody of the accused for detailed questioning.

Meanwhile, the Gurgaon police has said that the fraud perpetrated by Citibank Relationship Manager Shivraj Puri might involve the accounts of about 29 entities.u00a0

The irregularities at Citibank had come to light after a complaint was lodged that the bank was offering unlikely returns on an investment scheme for investors. It was found that Puri had collected the money on the basis of a fake SEBI circular that claimed the schemes had the market regulator's approval. The FIR was filed by Citibank Assistant Vice-President Binu Somen, following which Puri surrendered on December 30.

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