AFP reports that Mr Pandit and ten other top-ranking Citi chiefs were cited in a complaint made by a businessman who lost money as a result of alleged corruption at an outlet in Gurgaon, a city on the outskirts of New Delhi.
Under standard Indian procedure, the case has been registered by police and a preliminary investigation will now be conducted before any decision is made on whether to press charges.
Citi, meanwhile, is carrying out an internal probe and confirmed today (January 5th 2011) that two unnamed employees had been singled out as possible collaborators in the fraud - they were subsequently sent on leave by the bank.
In a memo circulated to staff last week, Mr Pandit insisted that Citi was well placed to withstand the impact of new regulations and would deliver "sustained profitability and responsible growth" over the coming months.
By Gary Cooper