Citi's India Woes Resolved Quickly

NEW DELHI( TheStreet) -- That was quick.

Just a day after naming Citigroup ( C) CEO Vikram Pandit and top executives as targets in a fraud investigation, Indian police appear to have cleared them of any wrongdoing.

Reuters quoted an anonymous police official who said that "as far as we see, top management cannot be held responsible for activities at the branch."

Citi did not immediately respond to a request for comment from TheStreet. On Tuesday, the company said in a statement that the claims against top executives "are completely without basis" and that it would "contest them vigorously."

The case relates to a Citi employee who may have forged bank accounts, documents and transactions to allegedly reap tens of millions of dollars.

Indian police arrested that employee, Shivraj Puri, a relationship manager at a branch in Gurgaon, after a customer complained about seemingly shady transactions. This week, they also arrested Sanjay Gupta, a senior executive at a company called Hero Group, who also allegedly profited from Puri's supposed actions.

The customer, Sanjeev Aggarwal, has told Indian media outlets that he lost about 330 million rupees in the alleged scheme.

Following those arrests, various media outlets reported on Tuesday that Aggarwal had also named Pandit and a few other executives, including CFO John Gerspach, Chief Operating Officer Douglas Peterson and former Senior Vice-Chairman William Rhodes, in his complaint with police. Indian police then named those executives in a "first information report," or FIR, a preliminary document in an investigation.

>>>Read More:

Citi's Pandit Named in Indian Fraud Case

Citi Investigating 'Suspicious Transactions'

Exec Busted in Citi Fraud

-- Written by Lauren Tara LaCapra in New York.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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