The Big Scams in India

8/13/2019 The Big Scams in India

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THE BIG SCAMSIN INDIA

S. N. Lavanya

(121202064)


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Many scams in the past decade.

First major scam was the Bofors Scamduring the 1980s and 90s.

The Swedish Co. paid Rs. 640 mil. As bribesto the top politicians and defencepersonnel.

Rajiv Gandhi was implicated andCongress lost the elections.


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HAWALA SCAM

Payments being made to HizbulMujahideen in Kashmir through Hawala

Brokers

SK Jain, NK Jain and BR Jain

People involved: L. K. Advani, V. C.Shukla, P. Shiv Shankar, Sharad Yadav,

Balram Jakhar, and Madan Lal Khurana

Vineet Narain broke the news


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Amount Involved

Rs. 810 Crores in 1996

The Brokers maintained a diary with details of who gothow much. Advani was getting around Rs. 70 Lakhsand an Independent ministers named Arif Mohd. Khanwere getting Rs.7.5 Crores!


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COALGATE SCAM

Rule from 1993 is to auction the miningcontract to highest bidder.

194 coal blocks not auctioned between2004-2011

Government of India was the accused byCAG mainly PM Manmohan Singh

(formerly held coal portfolio)

Estimated Loss: Rs. 1.86 Lakh Crores


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Jindal Steel and Power, Essar Power, Hindalco, Tata

Steel and Tata Power got the coal mining contractsat windfall prices

The PSUs were excluded out of the equation or else

loss would be Rs. 10 Lakh Crores.


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2G SCAM

The 2G spectrum was supposed to beauctioned in 2008. Was not.

People Involved: A. Raja (preponed thedeadline dates for receivingapplications), M. K. Kanimozhi.

Estimated Loss: Rs. 1.76 Lakh Crores


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TELGHI SCAM

Sold fake stamp papers to the IndianGovernment, Insurance companies and

banks.Cases filed between 1992 and 2002

Operated through 300 agents distributingthe fake stamp paper.

People involved: Abdul Karim Telghi andSharad Pawar

Estimated Loss: Rs. 20,000 Crores


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CWG SCAM

Large scale misappropriation of money in2010.

Inflated costs of everything used.

Water dispenser rent was Rs. 7000/day andA/C rent was Rs. 11,000/day per piece.

People involved: Suresh Kalmadi, SheilaDixit



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SATYAM SCAM (2009)

Showed nonexistent assets andemployees

Tried to replace fake assets with real onesand got caught.

People involved: Satyam CEO B.Ramalinga Raju



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HARSHAD MEHTA STOCKSCAM

Used the banking system to artificiallyraise stock prices.

Used Ready Forward (RF) deals. Got fakeBank Receipts (BRs) from Bank of Karadand Metropolitan Co-op Bank.

He used these fake BRs and got money

from the banks. Bought stocks to raisethem.


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These stocks were then sold at a huge

profit and all the bank liabilities werecleared.

The banking industry was swindled by Rs.4000 Crores!

Came to light in 1992.


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ADARSH HOUSING SOCIETYSCAM Supposed to build 6-storey flats for Kargil

War heroes and widows.

The politicians overtook it and turned itinto 31-storey tower.

Flats worth Rs. 68.5 Crores were sold for60-85 Lakhs.

People Involved: Ashok Chavan, VilasraoDeshmukh, Sushil Kumar Shinde andNarayan Rane


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NSEL SCAM

National Spot Exchange Ltd. couldnt paythe investors their money after 31stJuly

2013.

T+2 settlements were honoured, but theexchange didnt honour the T+25settlements.

The exchange didnt have neither themoney nor the commodities.


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People involved: Jignesh Shah, Anjani

ShahAmount Involved: Rs. 5600 Crores


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FODDER SCAM

Small scale embezzlement of cash to beused for expenses snowballed into a large

scale scam

This came slowly into light when the Bihargovt delayed submission of expensesreport to the CAG

Persons involved: Lalu Prasad Yadav andJagannath Mishra


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Amount involved was Rs. 950 Crores over

a period of many years. Scam came to light fully in 1992.

Lalu Prasad Yadav was recently sent tojail but released on bail.


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TOTAL ESTIMATED LOSS

Rs. 47,13,60,00,00,000


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TRANSPARENCY

Transparency International measurescountries by the level of corruption

Corruption Score is 36/100 (0 is worst and100 is very clean)

62% reported to paying a bribe in 2013

SOURCE: TRANSPARENCY.ORG


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Least corrupt countries

1. Denmark

2. New Zealand

3. Finland

4. Sweden

5. Norway

India is ranked 97 out of 177 countries

SOURCE: Transparency.org/cpi2013/results


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The Big Scams in India

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