top scams in India

1. Fraudulent CWG: The Commonwealth Games scam Discrepancies in tenders and alleged misappropriation amounting to about Rs 8,000 crore. Urban Development Ministry directed the Delhi Development Authority DDA to freeze the company’s Rs183 crores guarantee 2. Satyam’s corporate scandal: Satyam Computers , the fourth largest IT Company of India with 53,000 employees was charged in manipulating the balance sheet by illegal means. Satyam’s operating margin wasn’t the 24 percent as shown in its accounts audited by PricewaterhouseCoopers , but just 3 percent. Satyam had nothing close to the reported 5,360 crore ($1.1 billion) cash pile on its balance sheet. The real amount was just a measly $78 million. On January 9, 2009, Chairman Ramalinga Raju surrendered to the police and confessed for the 7,100 crore fraud case. 3. The Harshad Mehta scam: Harshad and his associates triggered a securities scam diverting funds to the tune of Rs4000 crore (Rs 40 billion) from the banks to stockbrokers between April 1991 to May 1992. A Special Court also sentenced Sudhir Mehta, Harshad Mehta’s brother, and six others, including four bank officials, to rigorous imprisonment (RI) ranging from 1 year to 10 years on the charge of duping State Bank of India to the tune of Rs 600 crore (Rs 6 billion) 4. The 950 Crores Fodder Scam : 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. 5. The great Capital Market fraud of 1990s: C.R Bhansali plundered and looted the trust and money of people which resulted in a loss of over Rs 1,200 crore (Rs 12 billion). C R Bhansali first launched the finance company CRB Capital Markets, followed by CRB Mutual Fund and CRB Share Custodial Services. CRB Capital Markets raised a whopping 176 crore in three years. In 1994, CRB Mutual Funds raised 230 crore and 180 crore came via fixed deposits. Bhansali also succeeded in raising about Rs 900 crore from the markets. 6. Bofors scam 7. Spectrum Raja 8. Ketan Parekh A chartered accountant he used to run a family business, NH Securities. 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. 9. Cobbler scam Sohin Daya, son of a former Sheriff of Mumbai, was the main accused in the multi-crore shoes scam. Daya of Dawood Shoes, Rafique Tejani of Metro Shoes, and Kishore Signapurkar of Milano Shoes were arrested for creating several leather co-operative societies which did not exist. They availed loans of crores of rupees on behalf of these fictitious societies. The scam was exposed in 1995. Officials of the Maharashtra State Finance Corporation, Citibank, Bank of Oman, Dena Bank, Development Credit Bank, Saraswat Co-operative Bank, and Bank of Bahrain and Kuwait were also charge sheeted. 10. Dinesh Dalmia Dinesh Dalmia was the managing director of DSQ Software Limited when the Central Bureau of Investigation arrested him for his involvement in a stocks scam of Rs 595 crore (Rs 5.95 billion). Dalmia’s group included DSQ Holdings Ltd, Hulda Properties and Trades Ltd, and Powerflow Holding and Trading Pvt Ltd. Dalmia resorted to illegal ways to make money through the partly paid shares of DSQ Software Ltd, in the name of New Vision Investment Ltd, UK, and unallotted shares in the name of Dinesh Dalmia Technology Trust. Investigation showed that 1.30 crore (13 million) shares of DSQ Software Ltd had not been listed on any stock exchange. 11. Abdul Karim Telgi He paid for his own education at Sarvodaya Vidyalaya by selling fruits and vegetables on trains. 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). Telgi’s networked spread across 13 states involving 176 offices, 1,000 employees and 123 bank accounts in 18 cities. 12. Virendra Rastogi Virendra Rastogi chief executive of RBG Resources was charged with for deceiving banks worldwide of an estimated $1 billion. He was also involved in the duty-drawback scam to the tune of Rs 43 crore (Rs 430 milion) in India. The CBI said that five companies, whose directors were the four Rastogi brothers — Subash, Virender, Ravinde and Narinder — exported bicycle parts during 1995-96 to Russia and Hong Kong by heavily over invoicing the value of goods for claiming excess duty draw back from customs. 14. Uday Goyal :: Plantation firms’ scam Since few firms in mid-90s were subject to no guidelines, the plantation companies during that time also got away with profit protrusions. The plantation firms projected themselves as a part of IPO and assured massive returns. The investors were lured and the companies accrued profits from fake campaigns of around Rs 8000 crores plus. Uday Goyal, managing director of Arrow Global Agrotech Ltd, was yet another fraudster who cheated investors promising high returns through plantations. Goyal conned investors to the tune of over Rs 210 crore (Rs 2.10 billion). Over 43,300 persons had fallen into Goyal’s trap. 15. Sanjay Agarwal :: Home Trade scam

Home Trade had created waves with celebrity endorsements. He swindled Rs 600 crore (Rs 6 billion) from more than 25 cooperative banks. The government securities (gilt) scam of 2001 was exposed when the Reserve Bank of India checked the acounts of some cooperative banks following unusual activities in the gilt market. the Public Provident Fund (PPF) was affected. A sum of about Rs 92 crore (Rs 920 million) was missing from the Seamen’s Provident Fund. Sanjay Agarwal, Ketan Sheth (a broker), Nandkishore Trivedi and Baluchan Rai (a Hong Kong-based Non-Resident Indian) were behind the Home Trade scam. Initiated in 2000, Home trade invested rs 24 crore in promotional campaigns to attract investors. The scam affected 8 co-operative banks that lost Rs.82 Crore in EPF scheme.