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8,000 crore.Every day, more and more Skeletons are coming out of closet.2. SATYAM: A 700 cr. fraud in the fourth largest IT Company of India with 53,000 employees.It was charged in manipulating the balance sheet by showing an operating margin of 24% (audited by PWC) which was just 3% and it had nothing close to the reported cash pile of
.5,360 cr ($1.1 Bn) which in real was just $78 Mn.3.Harshad Mehta Stock Scam: In April 1992, the Indian stock market crashed, and Harshad Mehta, the person who was all along considered as the architect of the Bull Run was blamed for the crash. It transpired that he had manipulated the Indian banking systems to siphon off the funds from the banking system, and used the liquidity to build large positions in a select group of stocks. Harshad and his associates triggered a securities scam diverting funds to the tune of
4000 crore (Rs 40 billion) from the banks to stockbrokers between April 1991 to May 1992.The same day Vijaya Bank chairman committed suicide by jumping from the top of the banks’ office. The chairman knew that when it would become public that he had written cheques in the name of Mehta, he would be dead meat. One rather unknown fact about this scam is that there was a very important player in this scam who managed to keep a very low profile. That man was Nimesh Shah.Nimesh Shah still deals in the stock market and is known to be a heavy player. Harshad Mehta is now dead.4.The
950 Crores Fodder Scam: Fodder Scam is a scam related to Animal Husbandry Department of Government of Bihar in which irregularities of nearly Rs 950 crores (US $ 210 million) were detected. The scam was unearthed in 1996 during the regime of chief minister Lalu Prasad Yadav, but it goes back to 1980s and is believed to have started during tenure of Jagannath Mishra Lalu had ordered probe into these massive irregularities in accounts by constituting a committee. However motives of these people were questioned by a Public Interest Litigation and Supreme Court of India handed over the case to CBI. Many people who were in this probe committee themselves became accused. Charges were filed against Yadav too and later on Mishra was also framed.In India when it comes to politicians, they seem to have impunity from the law of land. Nothing concrete was done to punish the guilty and rest is history.5. Ketan Parekh: Ketan Parekh followed Harshad Mehta's footsteps to swindle crores of rupees from banks. A chartered accountant he used to run a family business, NH Securities. Ketan however had bigger plans in mind. He targetted smaller exchanges like the Allahabad Stock Exchange and the Calcutta Stock Exchange, and bought shares in fictitious names.His dealings revolved around shares of ten companies like Himachal Futuristic, Global Tele-Systems, SSI Ltd, DSQ Software, Zee Telefilms, Silverline, Pentamedia Graphics and Satyam Computer (K-10 scrips). Ketan borrowed Rs 250 crore from Global Trust Bank to fuel his ambitions. Ketan alongwith his associates also managed to get Rs 1,000 crore from the Madhavpura Mercantile Co-operative Bank.According to RBI regulations, a broker is allowed a loan of only Rs 15 crore (Rs 150 million). There was evidence of price rigging in the scrips of Global Trust Bank, Zee Telefilms, HFCL, Lupin Laboratories, Aftek Infosys and Padmini Polymer.
6.C R Bhansali : The Bhansali scam resulted in a loss of over Rs 1,200 crore (Rs 12 billion).He first launched the finance company CRB Capital Markets, followed by CRB Mutual Fund and CRB Share Custodial Services. He ruled like a financial wizard 1992 to 1996 collecting money from the public through fixed deposits, bonds and debentures. The money was transferred to companies that never existed.CRB Capital Markets raised a whopping Rs 176 crore in three years. In 1994 CRB Mutual Funds raised Rs 230 crore and Rs 180 crore came via fixed deposits. Bhansali also succeeded to to raise about Rs 900 crore from the markets.However, his good days did not last long, after 1995 he received several jolts. Bhansali tried borrowing more money from the market. This led to a financial crisis.It became difficult for Bhansali to sustain himself. The Reserve Bank of India (RBI) refused banking status to CRB and he was in the dock. SBI was one of the banks to be hit by his huge defaults.
7.Abdul Karim Telgi: He paid for his own education at Sarvodaya Vidyalaya by selling fruits and vegetables on trains. He is today famous (or infamous) for being he man behind one of biggest scams!The Telgi case is another big scam that rocked India. The fake stamp racket involving Abdul Karim Telgi was exposed in 2000. The loss is estimated to be Rs 171.33 crore (Rs 1.71 billion), it was initially pegged to be Rs 30,000 crore (Rs 300 bilion), which was later clarified by the CBI as an exaggerated figure.In 1994, Abdul Karim Telgi acquired a stamp paper license from the Indian government and began printing fake stamp papers.Telgi bribed to get into the government security press in Nashik and bought special machines to print fake stamp papers.Telgi's networked spread across 13 states involving 176 offices, 1,000 employees and 123 bank accounts in 18 cities.
