The top 5 biggest scams in India along with the estimated
amount involve
1.2G Spectrum Scam - Rs. 1.76 lakh crore
The 2G spectrum scam was a political controversy in which
politicians and private officials of the United Progressive Alliance (UPA)
coalition government in India were allegedly involved in selling or allotting
122 2G spectrum licenses on conditions that provided an advantage to specific
telecom operators. The scam was revealed when the Comptroller and Auditor
General (CAG) of India reported that 2G or second-generation licenses for
mobile networks were given at throwaway prices instead of carrying out free and
fair auctions. According to the estimate of the CAG, the presumptive loss
from the 2G scam was Rs. 1.76 lakh crore. The scam resulted in the
cancellation of 122 licenses and the imprisonment of several high-profile
individuals, including the former Telecom Minister A. Raja.
2.Commonwealth Games Scam - Rs. 70,000 crore
The Commonwealth Games Scam was a major scandal that occurred during the 2010 Commonwealth Games in New Delhi, India. The scam involved allegations of fraud and mismanagement in the organization of the games, resulting in a loss of approximately Rs. 70,000 crore. It was estimated that only half of the allotted amount was spent on Indian sportspersons. The scam was one of the largest frauds in Indian history and damaged India's image as a country plagued by widespread fraud and abuse. The organizers of the games, including Suresh Kalmadi, were accused of inflating prices and accepting bribes in the awarding of contracts for various services related to the games. The scam resulted in several arrests and the conviction of Kalmadi and other officials involved in the scandal
3.Satyam Scam - Rs. 14,000 crore
The Satyam Scam was a major corporate scandal in India that was revealed in 2009. The founder and Chairman of Satyam Computer Services, Ramalinga Raju, confessed to manipulating the company's accounts and inflating profits over several years, resulting in a fraud of approximately Rs. 14,000 crore. The scam was one of the biggest corporate frauds in Indian history and had a significant impact on the country's IT industry.
The impact of the Satyam Scam was far-reaching, with many consequences for the company and the broader Indian economy. The scandal led to the collapse of Satyam's stock price, which fell by over 90% in a matter of days, resulting in significant losses for investors. The Indian government was forced to intervene to prevent the collapse of the company, which was eventually sold to Tech Mahindra. The scam also led to a loss of investor confidence in the Indian IT industry, which was seen as a key driver of the country's economic growth. As a result, the Indian government introduced new regulations to improve corporate governance and prevent similar scams from occurring in the future.
4. Harshad Mehta Scam - Rs. 5,000 crore
The Harshad Mehta Scam, also known as the 1992 Indian securities scam, was a major financial scandal in India that involved stockbroker Harshad Mehta. Mehta manipulated the Bombay Stock Exchange (BSE) by exploiting several loopholes in the banking system, including the use of fake bank receipts. The scam was estimated to involve around Rs. 5,000 crore, making it one of the biggest financial scams in Indian history.
- The scam had a significant impact on the Indian financial system, leading to a loss of investor confidence and a decline in the stock market. It also exposed several flaws in the Indian banking system, leading to significant reforms and changes in the regulatory framework. Mehta was eventually arrested and charged with several criminal offenses, including fraud and forgery. He died in 2001 while awaiting trial.
- The Harshad Mehta Scam is still remembered as one of the most significant financial scandals in Indian history. It highlighted the need for better regulation and oversight in the financial sector and led to several reforms aimed at preventing similar scams from occurring in the future
PNB Scam - Rs. 14,356.84 crore
The PNB Scam, also known as the Nirav Modi Scam, was a major financial scandal in India that was uncovered in 2018. The scam involved fraudulent transactions worth Rs. 14,356.84 crore at Punjab National Bank (PNB), one of India's largest state-owned bank. The fraud was perpetrated by diamantaire Nirav Modi and his associates, who used fake letters of credit to obtain loans from PNB.
- The PNB Scam had a significant impact on the Indian banking sector, leading to a loss of investor confidence and a decline in the stock prices of several Indian banks. The scam also highlighted several flaws in the Indian banking system, including the lack of oversight and the absence of proper risk management protocols. The Indian government responded to the scam by introducing several reforms aimed at improving the regulation and oversight of the banking sector.
- Several individuals involved in the scam, including Nirav Modi, were arrested and charged with several criminal offenses, including fraud, money laundering, and criminal conspiracy. Nirav Modi is currently fighting extradition to India from the UK, where he has been living since the scam was uncovered.
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