Republic Of Scams - CiteHR
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Republic Of Scams

Total Scam Money (approx) Since 1992:



Rs. 73000000000000 Cr.


(73 Lakh Crore)

Hard to digest ?

Just check the below given details


1992 -Harshad Mehta securities scam Rs 5,000 cr

1994 -Sugar import scam Rs 650 cr

1995 -Preferential allotment scam Rs 5,000 cr

Yugoslav Dinar scam Rs 400 cr

Meghalaya Forest scam Rs 300 cr

1996: -Fertiliser import scam Rs 1,300 cr

Urea scam Rs 133 cr

Bihar fodder scam Rs 950 cr

1997 -Sukh Ram telecom scam Rs 1,500 cr

SNC Lavalin power project scam Rs 374 cr

Bihar land scandal Rs 400 cr

C.R. Bhansali stock scam Rs 1,200 cr



1998 -
Teak plantation swindle Rs 8,000 cr

2001 -UTI scam Rs 4,800 cr

Dinesh Dalmia stock scam Rs 595 cr

Ketan Parekh securities scam Rs 1,250 cr

2002 -Sanjay Agarwal Home Trade scam Rs 600 cr



2003 -
Telgi stamp paper scam Rs 172 cr



2005 -
IPO-Demat scam Rs 146 cr

Bihar flood relief scam Rs 17 cr

Scorpene submarine scam Rs 18,978 cr

2006 -Punjab's City Centre project scam Rs 1,500 cr,

Taj Corridor scam Rs 175 cr

2008 -Pune billionaire Hassan Ali Khan tax default Rs 50,000 cr

The Satyam scam Rs 10,000 cr

Army ration pilferage scam Rs 5,000 cr

The 2-G spectrum swindle Rs 60,000 cr

State Bank of Saurashtra scam Rs 95 cr

Illegal monies in Swiss banks, as estimated in 2008 Rs 71,00,000 cr

2009: -The Jharkhand medical equipment scam Rs 130 cr

Rice export scam Rs 2,500 cr

Orissa mine scam Rs 7,000 cr

Madhu Koda mining scam Rs 4,000 cr"

SC refuses to quash PIL against Mayawati in Taj corridor scam

Orissa mine scam could be worth more than Rs 14k cr

CORRUPTION, MONEY LAUNDERING SCAM, Koda discharged from hospital, arrest imminent

'A Cover-Up Operation':

"It's a scam involving close to Rs 60,000 crores"

Spectrum scam: How govt lost Rs 60,000 crore



India's biggest scams 1, Ramalinga Raju, Rs. 50.4 billion

India's biggest scams 2, Harshad Mehta, Rs. 40 billion

India's biggest scams 3, Ketan Parekh, Rs. 10 billion

India's biggest scams 4, C R Bhansali, Rs. 12 billion

India's biggest scams 5, Cobbler scam

India's biggest scams 6, IPO Scam

India's biggest scams 7, Dinesh Dalmia, Rs. 5.95 billion

India's biggest scams 8, Abdul Karim Telgi, Rs. 1.71 billion

India's biggest scams 9, Virendra Rastogi, Rs. 430 million

India's biggest scams 10, The UTI Scam, Rs. 320 million

India's biggest scams 11, Uday Goyal, Rs. 2.1 billion

India's biggest scams 12, Sanjay Agarwal, Rs. 6 billion

India's biggest scams 13, Dinesh Singhania, Rs. 1.2 billion



1, Jeep Purchase (1948) :- Free India's corruption graph begins. V. K. Krishna Menon, then the Indian high commissioner to Britain, bypassed protocol to sign a deal worth Rs 80 lakh with a foreign firm for the purchase of army jeeps. The case was closed in 1955 and soon after Menon joined the Nehru cabinet.

2, Cycle Imports (1951) :- S.A. Venkataraman, then the secretary, ministry of commerce and industry, was jailed for accepting a bribe in lieu of granting a cycle import quota to a company.

3, BHU Funds (1956) :- In one of the first instances of corruption in educational institutions, Benaras Hindu University officials were accused of misappropriation of funds worth Rs 50 lakh.

4, MUNDHRA SCANDAL (1957):- It was the media that first hinted there might be a scam involving the sale of shares to LIC, Feroz Gandhi sources the confidential correspondence between the then Finance Minister T.T. Krishnamachari and his principal finance secretary, and raised a question in Parliament on the sale of 'fraudulent' shares to LIC by a Calcutta-based Marwari businessman named Haridas Mundhra. The then Prime Minister, Jawaharlal Nehru, set up a one-man commission headed by Justice M.C.Chagla to investigate the matter when it becomes evident that there was a prima facie case. Chagla concluded that Mundhra had sold fictitious shares to LIC, thereby defrauding the insurance behemoth to the tune of Rs. 1.25 crore. Mundhra was sentenced to 22 years in prison. The scam also forced the resignation of T.T.Krishnamachari.

6, Teja Loans (1960):- Shipping magnate Jayant Dharma Teja took loans worth Rs 22 crore to establish the Jayanti Shipping Company. In 1960, the authorities discovered that he was actually siphoning off money to his own account, after which Teja fled the country.

7, Kairon Scam (1963):- Pratap Singh Kairon became the first Indian chief minister to be accused of abusing his power for his own benefit and that of his sons and relatives. He quit a year later.

8, Patnaik's Own Goal (1965) :- Orissa Chief Minister Biju Patnaik was forced to resign after it was discovered that he had favoured his privately-held company Kalinga Tubes in awarding a government contract.

9, Maruti Scandal (1974) :- Well before the company was set up, former Prime Minister Indira Gandhi's name came up in the first Maruti scandal, where her son Sanjay Gandhi was favoured with a license to make passenger cars.

10, Solanki Exposť (1992) :- At the World Economic Forum, Madhavsinh Solanki, then the external affairs minister, slipped a letter to his Swiss counterpart asking their government to stop the probe into the Bofors kickbacks. Solanki resigned when India Today broke the story.

11, Kuo Oil Deal (1976):- The Indian Oil Corporation signed an Rs 2.2-crore oil contract with a non-existent firm in Hong Kong and a kickback was given. The petroleum and chemicals minister was directed to make the purchase.

12, Antulay Trust (1981) :- With the exposure of this scandal concerning A.R. Antulay, then the chief minister of Maharashtra, The Indian Express was reborn. Antulay had garnered Rs 30 crore from businesses dependent on state resources like cement and kept the money in a private trust.



13, HDW Commissions (1987) :-
HDW, the German submarine maker, was blacklisted after allegations that commissions worth Rs 20 crore had been paid. In 2005, the case was finally closed, in HDW's favour.

14, Bofors Pay-Off (1987) :- A Swedish firm was accused of paying Rs 64 crore to Indian bigwigs, including Rajiv Gandhi, then the prime minister, to secure the purchase of the Bofors gun.

15, St Kitts Forgery (1989) :- An attempt was made to sully V.P. Singh's Mr Clean image by forging documents to allege that he was a beneficiary of his son Ajeya Singh's account in the First Trust Corp. at St Kitts, with a deposit of $21 million.

16, Airbus Scandal (1990) :- Indian Airlines's (IA) signing of the Rs 2,000-crore deal with Airbus instead of Boeing caused a furore following the crash of an A-320. New planes were grounded, causing IA a weekly loss of Rs 2.5 crore.

17, Securities Scam (1992) :- Harshad Mehta manipulated banks to siphon off money and invested the funds in the stock market, leading to a crash. The loss: Rs 5,000 crore.

18, Indian Bank Rip-off (1992) :- Aided by M. Gopalakrishnan, then the chairman of the Indian Bank, borrowers-mostly small corporates and exporters from the south-were lent a total of over Rs 1,300 crore, which they never paid back.

19, Sugar Import (1994) :- As food minister, Kalpnath Rai presided over the import of sugar at a price higher than that of the market, causing a loss of Rs 650 crore to the exchequer. He resigned following the allegations.

21, JMM Bribes (1995) :- Jharkhand Mukti Morcha leader Shailendra Mahato testified that he and three party members received bribes of Rs 30 lakh to bail out the P.V. Narasimha Rao government in the 1993 no-confidence motion.

22, In a Pickle (1996) :- Pickle baron Lakhubhai Pathak raised a stink when he accused former Prime Minister P.V. Narasimha Rao and godman Chandraswami of accepting a bribe of Rs 10 lakh from him for securing a paper pulp contract.

23, Telecom Scam (1996) :- Former minister of state for communication Sukh Ram was accused of causing a loss of Rs 1.6 crore to the exchequer by favouring a Hyderabad- based private firm in the purchase of telecom equipment. He, along with two others, was convicted in 2002.

24, Fodder Scam (1996) :- The accountant general's concerns about the withdrawal of excess funds by Bihar's animal husbandry department unveiled a Rs 950-crore scam involving Lalu Prasad Yadav, then the state chief minister. He resigned a year later.

25, Urea Deal (1996) :- C.S. Ramakrishnan, MD, National Fertiliser, and a group of businessmen close to the P.V. Narasimha Rao regime fleeced the government and took Rs 133 crore from the import of two lakh tonne of urea, which was never delivered.

26, Hawala Diaries (1996) :- The scandal surfaced following CBI raids on hawala operators in Delhi in 1991. But it was S.K. Jain's diaries that had heads rolling.

27, CRB SCAM (1997) :- Another scam forged by greed and discovered through accident. Chain Roop Bhansali, a smart-talking entrepreneur, created a pyramid financial empire based on high-cost financing. At its peak, his Rs. 1,000-crore financial conglomerate had in its ranks a mutual fund, a financial services company into fixed deposits, and a merchant bank. That Bhansali knew how to work the system became evident when he also managed to secure a provisional banking license. Then his luck ran out. An executive in the State Bank of India Inadvertently discovered that some interest warrants issued by Bhansali were not backed by cash. The bubble finally burst in May 1997, but by that time investors had lost over Rs. 1,000 crore. This was among the first retail scams in India and it was played out, in smaller avatars, across the country-especially in the South where financial services companies promised returns in excess of 20 per cent and decamped with the principal. Bhansali was arrested for a few weeks and released later on bail.



28, MEHTA'S SECOND COMING (1998) :-
The Big Bull returned to the bourses. This time, he allegedly colluded with the promoters of BPL, Videocon International, and Sterile Industries to rig the share prices of these companies. The inevitable collapse happened sooner than planned, Harshad Mehta orchestrated a cover-up operation that included a high=jinks effort by officials of Bombay Stock Exchange to (illegally ) open the trading system in the middle of the night to set things right, but the damage had been done. SEBI finally passed its ruling on the scam in 2001, banning the three companies concerned from tapping the market-BPL, for two years. Mehta was debarred for life form dealing in Securities Appellate Tribunal (SAT) in October 2001

29, VANISHING COMPANIES SCAM (1998) :- A passing remark heard by then Finance Minister Palaniappan Chidambaram resulted in a furore over what was badly-kept secret on Dalal street. Chidambaram was told that hundreds of companies had disappeared after raising moneys form the public. An informal scrutiny revealed that perhaps over 600 companies were missing. Chidambaram ordered a probe by SEBI. The SEBI probe conducted in May 1998 revealed that while many companies are not traded on the bourses at least 80 companies that had rises Rs.330.78 crore were simply missing. Later that year, the Department of Company Affairs (DCA) was asked to probe and penalize these companies. DCA still investigating. Investigations continue to this day.



30, PLANTATION COMPANIES SCAM (1999) :-
It was as innovative a swindle as any effected in the world. Savvy entrepreneurs convinced gullible investors that given the right irrigation and fertilizer inputs, teak, strawberries, and anything else that could be grown, would grow anywhere in the country. The promoters could afford to collect money from investors and not worry about retribution (or returns, for that matter). For, plantation companies fell under the purview of neither SEBI nor Reserve Bank of India. Indeed, they didn't even come under the scope of the Department decided to change things in 1999, enough investors had been gulled: 653 companies, between them, had raised Rs. 2,563 crore from investors. To date, not many investors have got their principals back, just another affirmation of the old saying about money not growing on trees.

31, Match Fixing (2000) :- Mohammed Azharuddin, till then India's cricket captain, was accused of match-fixing. He and Ajay Sharma were banned from playing, while Ajay Jadeja and Manoj Prabhakar were suspended for five years.

32, KETAN PAREKH SCAM (2001) :- Ketan Parekh's modus operandi wasn't very different from Harshad Mehta's. If Mehta used banker's receipts, then Parekh used pay orders to ramp up the prices of his favourite scrips (the K-10). Apart from money form the banking system Parekh also rerouted money from corporated like HFCL (Rs. 425 crore), and Zee (Rs. 340 crore) to good effect. He was caught when pay-orders issued by Madhavpura Mercantile Cooperative Bank bounced. Although the total amount involved in the scam was just Rs. 137 crore, the impact was far greater.

Apparently, when a bear cartel sensed Parekh was in trouble, it stepped in and leveraged a dip in the NASDAQ to bear down stock prices. The resultant slump in the markets happened soon after Finance Minister Yashwant Sinha presented what he considered his best budget ever. Under pressure from the government, SEBI investigated the scam and heads began to roll. Among them: the entire management team of BSE, including its president Anand Rathi, CSFB, First Global, and, in an indirect connection, P.S.Subramanyam, the Chairman of UTL Evidently, for the 18 months that PSS was Chairman of UTI, the Trust had mirrored the actions of the bull cartel. The result? When the market tanked, so did the NAV of its holy cow, the US-64.

33, Tehelka Sting (2001) :- Tehelka, an online news portal, used spycams to catch army officers and politicians accepting bribes, in their sting operation called Operation Westend. Investigative journalism turned another corner in the country.



34, Stockmarket Scam (2001) :-
The mayhem that wiped off over Rs 1,15,000 crore in the markets in March 2001 was masterminded by the Pentafour bull Ketan Parekh. He was arrested in December 2002 and banned from acccessing the capital market for 14 years.

35, Home Trade Scam (2002) :- Under the pretext of gilt trading, Rs 600 crore was swindled from over 25 cooperative banks in Maharashtra and Gujarat by a Navi Mumbai-based brokerage firm Home Trade. Sanjay Agarwal, CEO of the firm, was arrested in May 2002.



36, Stamp Paper Scam (2003) :-
The sheer magnitude of the racket was shocking-it caused a loss of Rs 30,000 crore to the exchequer. Disclosures of the mastermind behind it, Abdul Karim Telgi, implicated top police officers and bureaucrats.



37, Oil-for-Food Scandal (2005) :-
K. Natwar Singh was unceremoniously dropped from the Cabinet when his name surfaced in the Volcker Report on the Iraq oil-for-food scam.



What India Could Do With Rs 73 Lakh Crore?



Build: 2.4 crore primary healthcare centres. Thatís at least 3 for every village, at a cost of Rs 30 lakh each.

Build: 24.1 lakh Kendriya Vidyalayas at a cost of Rs 3.02 crore each, with two sections from Class VI to XII.

Construct: 14.6 crore low-cost houses assuming a cost of Rs 5 lakh a unit.

Set up: 2,703 coal-based power plants of 600 MW each. Each costs Rs 2,700 crore.



Supply:
12 lakh CFL bulbs. Thatís enough light for each of Indiaís 6 lakh villages

Construct: 14.6 lakh km of two-lane highways. Thatís a road around Indiaís perimeter 97 times over.



Clean up:
50 major rivers for the next 121 years, at Rs 1,200 crore a river every year.



Launch:
90 NREGA-style schemes, each worth roughly Rs 81,111 crore.

Announce: 121 more loan waiver schemes. All of them worth Rs 60,000 crore.

Give: Rs 56,000 to every Indian. Even better, give Rs 1.82 lakh to 40 crore Indians living BPL.

Hand out: 60.8 crore Tata Nanos to 60.8 crore people. Or four times as many laptops.



Grow the GDP:
The scam money is 27% more than our GDP of Rs 53 lakh crore."



Greed, graft, politics, bribery, dirty money. Just another day in the life of a nation still rated among the most corrupt in the world. Scan the scams that have grabbed headlines, destroyed reputations and left many people poorer.

Hello simmy2009,
While the long list you gave here does sound cynical & depressing as a fellow-Indian, one can't but wonder that we made so much progress taking us to among the top of the global powers....amidst such chaos & corruption.
Little wonder that it's really mind-boggling to even imagine where COULD we be if all the money that was swindled was put to better use than fatten the pockets of the perpetuators. No wonder again that someone said: India is NOT a poor country. India is a country of poor people.
While it's easy to say: God save India & then move on, why not consider doing something about it for a change?
Any ideas/suggestions from the members of this Forum?
Rgds,
TS

Please seek guidance from government.
They will guide for controling and restricting the Monthly salaried class people.
They will not have any think to reach upto higher level. (because their source of extra income may cut).
Now if you want to invest in Mutual fund you have to give a lot of details to the MF authorities. Further the government will make all the rules only to restrict the development of salaried class and not the super profit makers in market.
These all scam will help us to read the News headlines for some days and it will not make any change in the lifestyle of any VIPs (Very Important? (Irresponsible) Persons).
With warm regards
S. Bhaskar
9099024667

Dear Taj Sateesh & S Bhaskar
Thanks for posting your comments, I appreciate your initiative.
A blueprint to overcome this scams, is to reform in the constitutional laws. We all are of the facts the Rapist or Murderer in any case can get bail, this is the flexibility of our law system.
This continues occurrence, due to non severe punishment, which could be a lesson for the others to follow. People practice unethical activities since they know that nothing bad or worse can happen to them.

Hello simmy2009,

I don't think I can agree with you reg your comment "reform in the constitutional laws".

We have a lot of laws in India but where we fail or rather get hit is in the implementation.

A case in point is the conducting of the Elections. I am not sure how many recollect, but until about 12-15 yrs ago, canvassing [including the money part] went on till the time of election-day--maybe even during the polling in some cases--even though the laws are very clear on this aspect. But everything changed after TN Seshan came into the scene--and he didn't have to change any laws; he just had to implement the already existing ones more stringently--that's all.

However, rather than thinking about the society at large, why can't we look @ our own backyard? There have been very strong reports about corruption in the HR field [in recruitment to be exact] itself. I am not sure how much of such news is true, if true. Can't the seniors do some study/exercise to verify the facts? I am raising this aspect/topic since it's better to focus on issues where we CAN do something rather than harping on issues where we can't do much--at best--or can't do anything--at worst.

I suggest some sort of a self-regulatory body in HR--something like the Chartered Accountants have. One thing to notice is that despite having such a mechanism, occurrences like the Satyam scam [where the participation of the accountants are almost proven] did happen. But where such bodies will help is the get things going if & when such situations happen. The same holds good for the Insurance & Banking sectors.

Whether we like it or not, scams WILL occur--that's human nature [the most recent as I am typing this is the case of the Relationship manager in Citibank, Gurgaon branch where Rs. 300 crores are said to be swindled off]. It's only the difference in the scale/level--that's all.

Self-regulatory Mechanisms CAN'T & DON'T prevent scams. But they definitely help in identifying the culprits faster & putting into place corrective steps--until the crooks [old ones & newly merging ones too] learn how to beat the new steps [an example here would be the introduction of Digital Autometers for the 3-wheeler autos in Hyderabad--which was introduced about 4 yrs ago with the impression & belief that they can't be tampered like the electro-mechanical ones. But it took over a year for the auto guys to figure out ways to do it--and bang, they were in business again....business of fleecing the passengers by exorbitantly inflated fares]. Then the Regulatory Body will have to make further corrections/improvements in the process--and this goes on. It's always a cat&mouse game between those who make the law & those who break the law. Whether we like it or not, that's how it has been, is & will be the world over.

Frankly, I do know that many among this profession would rather NOT discuss the topic. But I think that's behaving like the proverbial cat--shutting it's eyes & thinking the world isn't noticing it. But it's upto us--whether to wait until something earth-shattering [w.r.t. HR profession] happens or having the vision to put in place steps that would address such situations, if & when they happen. I recollect a quote by Les Brown here: If you don't program yourself, life will program you. I guess that's what seem to be happening to all the ones who have been caught so far.

The choice is our's.

Rgds,

TS

Dear Mr. Sathish
Yes, Our Indian Constitution is very strong enough and we have no need to restructure it. The requirement at this scenario is only to control the misinterpretation of the version as per the requirement of our Law Makers.
This is what Simmy2009 intend to say. But his wordings made some other meanings what you have read.
With warm regards
S. Bhaskar
9099024667

Its really a shame for ussssssssssss but only these guys are not only responsible for it....we guys are somehow have role in encouraging such things, either directly or indirectly, I am not blaming anyone personally but many of the citizens are habitual of it......like.
1) If a person want to admit his pregnant wife for delivery in a hospital although they are capable for bearing the pvt hospital cost they would seek for some reference.
2) If anyone want to admit my children in a good pvt. school I would afford for donation.
3) If someone want to admit my children in a good institution I would prefer to spend money lavishly.
4) If anyone want to pay electricity/phone bills/buy a gas connection then he would reference is seek.
There are hundreds of examples....the list would like the above list.
It a bitter truth that .........I may be wrong in some cases but many times its happen in front of us/some time we are involved into it......directly or indirectly.

Its really a shame for ussssssssssss but only these guys are not only responsible for it....we guys are somehow have some role in encouraging such things, either directly or indirectly, I am not blaming anyone personally but many of the citizens are habitual of it......like.

1) If a person want to admit his pregnant wife for delivery in a hospital although they are capable for bearing the pvt hospital cost they would seek for some reference.

2) If anyone want to admit my children in a good pvt. school he/she would afford for donation.

3) If someone want to admit my children in a good institution he/she would prefer to spend money lavishly.

4) If anyone want to save time from the queues outside offices of electricity/phone bills/gas connection then he/she would look for a reference.

5) If anyone crosses a red signal at a crossing he/she would prefer to bribe the policemen in spite of paying a challan.

There are hundreds of examples....the list would like the above list.

It a bitter truth that .........I may be wrong in some cases but many times its happen in front of us/some time we are involved into it......knowingly or unknowingly.

If we had used just the scam and corruption money India would have been one of the leading Developed Country... Pretty unfortunate.

This does not mean that Leading developed countries do not have they also have scam and corruption but the point there --- when people swindle X amount of money they at least use of the 30-40% into productive usage.. So they are ahead... This is where India Fails..

Good statistical work..

It also shows that Indians have corruption basically at the back of their mind... (No Offense- I am also an Indian).

To speed up any government process if we pay bribe this also is corruption.. Which many and most of us do in India...

First we need to stop paying bribes, we as individuals need to rectify ourselves, only then we could look at the government. (As its we who make the government)

We are the ones at fault for not taking the right initiatives.. As long as we carry the attitude of "Its not my problem- the governments fault" so long India will be a corrupt country and will always stay as a developing country..

This is purely my point of view......

These guys know they can play with the system to ensure they never get caught.
We, the people, are made to believe democracy means vote every five years and then let them loot. Then again vote after five years and let a new batch come and loot.


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