Hero Group exposure to Citibank fraud Rs287.5 million

Hero Group said on Friday its exposure in the alleged financial fraud unearthed at Citigroup's Gurgaon branch in Haryana state was Rs287.5 million and that it was taking action to recover its dues.

On Dec 28, US-based Citigroup had said it was investigating a set of suspicious transactions based on what it said were forged documents by an employee at a branch in Gurgaon.

A person familiar with the matter had said the transactions may involve between Rs3-4 billion.

"The (Hero) Group is taking appropriate action and has also initiated dialogue with relevant authorities and Citibank to recover its dues," the firm said in a statement.

Hero said it had made the investments as part of a routine treasury operation and was "disappointed to learn that it has become a victim of the fraud under question".

Hero group owns 26% stake in No. 1 motorcycle maker Hero Honda Motors. Earlier this month, Hero agreed to buy Honda Motor's 26% stake in Hero Honda for an undisclosed sum.

Hero on Friday said Hero Honda did not have any involvement in any of the investments related to the case.