Citibank Fraud may go above 400 crore

Financial market or the money market as we popularly say is a market of great volatility or uncertainty. For instance when as the stock market rises a number of buyers whose stocks appreciate become wealthy and if the market falls unexpectedly then the invested money deflates as per the conditions of the market. In money market there are banks and financial institutions that run the show. They sell an array of financial products ranging from a life insurance policy with features of tax saving to products especially targeted for the HNIs. In the latest case of the fraud flashed all through the media and public is about the citi bank relationship managers of Gurgaon branch who could manage to manifest a fraud worth 400 crore.

To elaborate more it is very clear that bribery, stock manipulation, forging of documets, bribes-for-loans or loans against bribes are not new in our indian finanacial set-up. We know from the beginning that corruption is a part fo everyday life. People do not averse to give money against loan to the banker who sanctions the loan and neither have they felt guilty when caught by the police while breaking the traffice rule, as they know a 100 Rs. Note can save them from legal complexities. It is not new when we see people giving bribe to a policeman when caught and we have made it a socially acceptable escape from a crime. Most of us may think that breaking the traffic rule is not a crime while some of us who are aware of the justice system may think that it is petty crime trivial in its nature while this tendency make us take everything for granted. If a murder takes place somewhere in the city we may say it is usual as our mindset is developed in such a way that we take everything for granted.

In the latest citibank scandal it is known that some relationship managers at the Gurgaon citi bank branch forged the company letterhead to chart out financial products for the HNIs while no such plan existed in reality. As a result of which they managed to sell the forged financial products on behalf of their bosses who are supposedly some of the renowned broking houses to whose accounts ultimately the released money worth 400 Cr got transferred to the accounts of the brokers. To name a few as suspected are Bonanaza securities, Religare, SMC and Indiainfoline.


By Dipti Prasad Padhi

By : | Category : Business and Economy| Date : November 10,2011

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