Top 10 Scams in India
Frauds, characterized by dishonesty and deception, have plagued India, with white-collar crimes affecting various sectors. This article delves into the top 10 frauds that have significantly impacted the nation, involving financial institutions, corporations, and political figures.
- ABG Shipyard Bank Scam:
ABG Shipyard, a key player in India’s shipbuilding industry, faced a massive banking fraud of Rs 22,848 crores. Over a five-year period (2012-2017), the company obtained loans from 28 banks but diverted the funds for unauthorized purposes. The State Bank of India discovered the fraud in 2019, leading to a subsequent FIR filed by the CBI in 2022.
- Nirav Modi PNB Bank Fraud:
Nirav Modi, a renowned jeweler, orchestrated India’s largest corporate fraud, amounting to Rs 14,000 crores. The scam involved fraudulent issuance of letters of undertaking by Punjab National Bank, leading to unauthorized financing. Modi fled to London but is facing extradition following legal proceedings.
- Karvy Stock Broking Limited:
Karvy Stock Broking committed a sophisticated money robbery of Rs 2,800 crores by illegally obtaining bank loans using clients’ securities without their knowledge. SEBI intervened, issuing a circular against pledging securities, resulting in Karvy’s prohibition and removal from stock exchanges.
- Vijay Mallya Scam:
Vijay Mallya faced allegations of money laundering involving bank loans totaling Rs 9,081 crores. The liquor baron borrowed funds for his companies, including Kingfisher Airlines, and subsequently defaulted. Mallya fled to Britain but was arrested and faces extradition to India.
- Satyam Computers Scam:
The Satyam Computers scandal, amounting to Rs 14,000 crores, marked one of India’s largest corporate frauds. Founder B. Ramalinga Raju manipulated financial statements, inflating revenue and profit figures. Raju and associates received a 7-year prison term and a $5 billion fine.
- Harshad Mehta Scam:
Harshad Mehta, known as the Big Bull, exploited loopholes in the banking system, diverting funds of about Rs 5,000 crores from banks to stockbrokers in 1992. Mehta and his brother served three months in prison, leading to reforms in India’s banking system.
- 2g Spectrum Scam:
The 2g Spectrum fraud, spanning seven years, involved irregularities in allocating wireless radio spectrum and licenses to telecom operators. A Raja, the former telecom minister, faced allegations of corruption, resulting in a massive loss of Rs 1.76 lakh crores.
- Commonwealth Games Fraud:
The Commonwealth Games in 2010 faced accusations of fraud amounting to close to Rs 35,000 crores. Suresh Kalmadi, the organizing committee head, was arrested and charged with irregularities, leading to his removal and legal actions.
- Bofors Scam:
The Bofors scandal implicated Prime Minister Rajiv Gandhi in accepting payments for securing a contract to deliver India’s 155 mm field howitzer. The scandal led to Gandhi’s defeat and investigations into corruption.
- Jeep Scandal:
In 1948, the Jeep Scandal involved Indian High Commissioner V K Krishna Menon signing a contract for reconditioned jeeps, leading to financial losses and misuse of authority.
