The Citibank Gurgaon Relationship-Manager Fraud

“Citibank's Gurgaon branch, through relationship manager Shivraj Puri, offered high-net-worth clients access to investment products claiming unusually high, assured returns, reportedly supported by a forged document purporting to be a SEBI notification.”

— Shivraj Puri, Relationship Manager, Citibank Gurgaon branch, Relationship Manager, Citibank NA, Gurgaon branch · 1 January 2010

This reflects Haryana Police's investigative account of the scheme Puri allegedly pitched to clients, rather than a verified quotation from a specific offer document, which this entry has not reviewed directly.

That funds placed by Citibank's high-net-worth clients through a bank relationship manager would be invested as represented and safeguarded under the bank's internal controls and RBI/SEBI regulatory oversight, not diverted to personal or third-party accounts.

RBI's know-your-customer and internal-control norms for banks, SEBI regulations on investment products, and ordinary IPC provisions against cheating (Section 420) and criminal breach of trust (Section 406).

In force from 1 January 2010

Citibank detected irregularities in Puri's dealings and reported the matter to police around late December 2010. Haryana Police's investigation estimated that Puri had defrauded roughly 20-29 high-net-worth individuals and entities, including promoters linked to the Hero Group, of about Rs 400 crore (with some reports citing Rs 405.5 crore) by promising unusually high returns and allegedly showing a forged SEBI-related document, then diverting client funds into accounts held by his wife and other relatives rather than into any genuine investment product; some funds were reportedly routed into stock-market derivatives and real estate. Puri was arrested in early January 2011 and remained in custody through extended police and judicial remand as the investigation continued; his named relatives were reported to be absconding in early 2011. This entry's research could not confirm that the criminal trial against Puri reached a final verdict before his death: multiple reports establish that Puri, described as the case's mastermind, died in May 2021 at a Delhi hospital after contracting tuberculosis while held in Bhondsi jail (Gurugram) in connection with a separate 2020 fraud case, following earlier custody in the original Citibank matter.

As of 1 May 2021

Police estimates of the fraud amount ranged from about Rs 400 crore to Rs 405.5 crore across roughly 20-29 client accounts. No confirmed recovery or client-compensation figures were found in this entry's research.

1. 29 Dec 2010Announcement
   Fraud reported to police

   Citibank and affected clients report suspected diversion of funds by relationship manager Shivraj Puri at the Gurgaon branch.

2. 8 Jan 2011Milestone
   Puri arrested

   Haryana Police arrest Shivraj Puri; police estimate the fraud at around Rs 400 crore affecting roughly 20-29 HNI clients including Hero Group-linked accounts.

3. 9 Jan 2011Status
   Police put fraud estimate at Rs 400 crore

   Police publicly estimate the scale of the fraud and describe funds being diverted into accounts held by Puri's wife and other relatives.

4. 5 Apr 2011Milestone
   Puri's father remanded in custody

   Puri's father is taken into police custody for two days as investigators probe the family accounts allegedly used to route diverted funds.

5. 1 May 2021Status
   Shivraj Puri dies in custody

   Puri, held in Bhondsi jail in connection with a separate, later 2020 fraud case, dies of tuberculosis at a Delhi hospital, before any confirmed final verdict in the original Citibank case.

Shivraj Puri was arrested and prosecuted over the alleged Rs 400 crore fraud, with relatives named as co-accused and reported absconding in early 2011. This entry's research could not confirm a final trial verdict against Puri; he died in judicial custody in May 2021 while held in a separate case, which would ordinarily abate any pending criminal proceedings against him personally. The legal outcome for his named relatives (Premnath Puri, Diksha Puri, Shaila) was not confirmed by this entry's research.

• Whether the criminal case against Shivraj Puri reached any interim verdict, charge-framing outcome, or conviction/acquittal before his May 2021 death has not been confirmed.
• The legal outcome for Puri's relatives (Premnath Puri, Diksha Puri, Shaila), named as co-accused and reported absconding in 2011, has not been confirmed.
• Whether Citibank compensated affected HNI clients, in full or in part, and any related RBI regulatory action against Citibank's internal controls, was not confirmed by this entry's research.
• The precise final fraud amount (reports range from Rs 400 crore to Rs 405.5 crore) was not reconciled across sources.