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Counted as it is among the world’s fastest growing economies, an unfathomable amount of money flows in and out of the Indian economic system. But there are cracks in said system, and ever so often, a fraudulent mastermind uses them to slip some cash out for their advantage.<br /><br />From <keyword id="19964851" type="General" weightage="20" keywordseo="ponzi" source="keywords">Ponzi</keyword> schemes to bank frauds, the Indian government and investors have fallen victim to many financial scandals — some of which were so sordid that they can be recounted like they happened yesterday. Here’s a rundown of the most infamous scams in Indian financial history:<br /><h2><keyword id="20713434" type="General" weightage="20" keywordseo="harshad-mehta" source="keywords">Harshad Mehta</keyword> Scam (1992) – ₹4,000 Crore<br /></h2>Perhaps the most iconic of all Indian financial scams, Harshad Mehta was known as the "Big Bull" of the stock market. He manipulated stock prices using illegal loopholes in the banking system. By obtaining unsecured loans from banks and investing them in the stock market, Mehta artificially inflated stock prices. His bubble burst when banks demanded their money back, revealing the massive fraud. This scandal led to a major reform in India's financial markets.<br /><br />Mehta died in jail before full legal accountability was reached, but the scam caused a significant loss to investors and led to tighter regulation in the Indian stock market.<br /><h2><keyword id="23122396" type="General" weightage="20" keywordseo="satyam-scam" source="keywords">Satyam Scam</keyword> (2009) – ₹14,000 Crore<br /></h2>Dubbed as India’s Enron, the Satyam scandal involved its founder, <keyword id="23122397" type="General" weightage="20" keywordseo="ramalinga-raju" source="keywords">Ramalinga Raju</keyword>, admitting to falsifying the company's accounts to the tune of ₹14,000 crore. Satyam Computer Services, once considered a blue-chip company, was found guilty of inflating profits and revenues. Raju admitted to the scam after a failed attempt to buy two Maytas firms owned by his family. This case brought corporate governance issues in India to the forefront.<br /><br />Raju was convicted, but the legal processes have allowed him temporary freedom through bail. But this incident called for improved transparency and stricter corporate governance norms.<br /><h2>Punjab National Bank Scam (2018) – ₹13,700 Crore<br /></h2>Diamond merchant Nirav Modi and his uncle Mehul Choksi orchestrated one of the largest frauds in Indian banking history by obtaining fraudulent Letters of Undertaking (LoUs) from Punjab National Bank (PNB). These LoUs allowed them to obtain loans from foreign branches of Indian banks without providing any collateral. The scam involved over ₹13,700 crore, and Modi fled the country, causing significant reputational damage to India’s banking sector.<br /><br />Nirav Modi’s extradition is still pending, and Mehul Choksi remains out of India’s legal jurisdiction. The scam, however, resulted in strengthened banking regulations regarding LoUs and SWIFT transactions.<br /><h2><keyword id="23122399" type="General" weightage="20" keywordseo="vijay-mallya-scam" source="keywords">Vijay Mallya Scam</keyword> (2016) – ₹9,000 Crore</h2>The "King of Good Times" was living large while his airline, Kingfisher, was drowning in debt. Vijay Mallya allegedly defaulted on loans amounting to ₹9,000 crore from various banks. He fled to the UK in 2016, leaving creditors, employees, and stakeholders in financial distress. His lavish lifestyle amidst the collapse of his airline made this scandal a high-profile case.<br /><br />Mallya’s extradition process is ongoing, but he remains out of reach of Indian authorities. The main impact was enhanced scrutiny of loan defaults and triggered legal reforms on extradition.<br /><h2>Saradha Chit Fund Scam (2013) – ₹2,500 Crore<br /></h2>The Saradha Group, operating a ponzi scheme disguised as a chit fund, promised unrealistically high returns to its investors, mostly in West Bengal and Odisha. The scam collapsed, leaving over 1.7 million people, many of whom were low-income investors, without their life savings. Politicians and celebrities were also implicated in the case.<br /><br />While Sudipta Sen is behind bars, not all the accomplices have been held accountable. But this Ponzi scheme resulted in reform of chit funds and greater regulatory oversight on such investment schemes.<br />  <div type="Article" hostid="261" msid="112337071" title="Noida woman invests in stock market via an app, loses over Rs 69 lakh as it turns out to be a scam" mstype="2" mssubtype="0"></div><br /><h2><keyword id="6560832" type="General" weightage="20" keywordseo="2g-spectrum-scam" source="Orion">2G Spectrum Scam</keyword> (2008) – ₹1,76,000 Crore<br /></h2>The 2G spectrum allocation scandal involved the underpricing of telecom licences to select companies in exchange for bribes. Telecom minister A. Raja was at the centre of this controversy, which allegedly caused a loss of ₹1.76 lakh crore to the exchequer. The case was seen as a massive blow to public trust in India’s telecom sector and led to significant political fallout.<br /><br />Sadly, all key figures involved were acquitted despite the Supreme Court’s intervention and cancellation of 122 telecom licences.<br /><br /><h2><keyword id="455134" type="General" weightage="20" keywordseo="coal-allocation-scam" source="Orion">Coal Allocation Scam</keyword> (Coalgate) (2012) – ₹1,86,000 Crore<br /></h2>The coal allocation scam, or "Coalgate," involved the illegal allocation of coal blocks to private companies between 2004 and 2009. The CAG of India estimated a loss of ₹1.86 lakh crore to the exchequer due to non-competitive bidding. Many high-profile politicians and industrialists were implicated, making this one of the largest political scandals in India.<br /><br />While some officials faced legal consequences, many key players were not prosecuted. But it did trigger policy reforms in the allocation of natural resources.<br /><br /><h2>DHFL Scam (2019) – ₹34,615 Crore<br /></h2>Dewan Housing Finance Corporation Limited (DHFL) was accused of syphoning off over ₹34,000 crore through a series of shell companies and fraudulent loans. Investigations revealed that the promoters used these funds for personal enrichment and illegal political donations. The case came to light after an investigation by investigative journalists and was later confirmed by a report from KPMG.<br /><br />The case is ongoing, and the main accused are in custody. For now, regulations governing non-banking financial companies (NBFCs) have been strengthened.<br /><br /><h2>Yes Bank Crisis (2020) – ₹3,788 Crore<br /></h2>Yes Bank, under its founder <keyword id="19899935" type="General" weightage="20" keywordseo="rana-kapoor" source="keywords">Rana Kapoor</keyword>, was involved in questionable lending practices. The bank made high-risk loans to companies already in financial trouble, which eventually turned into non-performing assets (NPAs). Kapoor was arrested, and the Reserve Bank of India had to step in to stabilise the bank. The case highlighted serious lapses in corporate governance and risk management.<br /><br />As of now, Rana Kapoor is facing trial, and legal proceedings are active. The RBI has also introduced new measures to monitor the health of banks more rigorously.<br /><h2>Commonwealth Games Scam (2010) – ₹70,000 Crore<br /></h2>The 2010 Commonwealth Games held in New Delhi were overshadowed by corruption allegations involving inflated contracts and kickbacks. <keyword id="23122398" type="General" weightage="20" keywordseo="suresh-kalmadi" source="keywords">Suresh Kalmadi</keyword>, the head of the organising committee, was arrested for awarding contracts at exorbitant rates. The estimated loss to the exchequer was around ₹70,000 crore. This scam tarnished India’s image on the global stage.<br /><br />Kalmadi was arrested but the case has not resulted in major convictions or recoveries, except for stricter oversight on large public projects and international event planning.<br /><br />These scams not only caused financial damage but also eroded public trust in India’s institutions. In response, India has tightened regulatory frameworks, improved corporate governance, and adopted stricter banking standards, although challenges persist in tackling large-scale fraud.<br />  <div type="Article" hostid="261" msid="112896255" title="I was scammed out of $300K in a 3-month-long government impersonation scam" mstype="2" mssubtype="0"></div><br />

10 financial scams that shook India: A dive into deception

Three <keyword id="19909452" type="General" weightage="20" keywordseo="labourers" source="keywords">labourers</keyword> died of <keyword id="20100581" type="General" weightage="20" keywordseo="asphyxiation" source="keywords">asphyxiation</keyword> at an <keyword id="454970" type="General" weightage="100" keywordseo="illegal-coal-mine" source="Orion">illegal coal mine</keyword> in Gujarat's Surendranagar district, police said on Sunday. A case has been registered against four persons for <keyword id="20497088" type="General" weightage="20" keywordseo="culpable-homicide" source="keywords">culpable homicide</keyword> not amounting to murder, and efforts are on to apprehend them, an official said. <br /><br />The victims, Lakshman Dabhi (35), Khodabhai Makwana (32) and Viram Keraliya (35), were digging at a mine near Bhet village in Thangadh taluka of the district when they died of asphyxiation on Saturday, the official from Muli Muli police station said. <br /><br />The trio did not have helmets, masks or other <keyword id="20754876" type="General" weightage="20" keywordseo="safety-equipment" source="keywords">safety equipment</keyword> when they were working for the accused, he said. <br /><br />As per the first information report (FIR), the accused did not provide helmets or other safety equipment to the deceased while employing them to dig a well. <br /><br />They died after inhaling gas from the well, it stated. <br /><br />A case was registered against Jashabhai Keraliya, Janak Aniyaria, Khimjibhai Saradia, and Kalpesh Parmar, the official said. <br /><br />Bodies of the deceased labourers have been sent for post-mortem, he added. <br /><br />Earlier in February, three workers died after inhaling toxic gas that emanated after a blast triggered by gelatin sticks for an <keyword id="19932636" type="General" weightage="20" keywordseo="illegal" source="keywords">illegal</keyword> mining operation in the district.

Three die of asphyxiation at illegal coal mine in Gujarat

The <keyword id="19896633" type="General" weightage="20" keywordseo="CBI" source="keywords" meta.keywordsubtype="org" meta.entityname="CBI" meta.hostid="261" meta.entityid="CBI">CBI</keyword> has booked the country's leading aluminium producer <keyword id="20129733" type="General" weightage="20" keywordseo="Hindalco" source="keywords" meta.keywordsubtype="org" meta.entityname="Hindalco" meta.hostid="261" meta.entityid="Hindalco">Hindalco</keyword> of the <keyword id="19907441" type="General" weightage="20" keywordseo="Aditya-Birla-Group" source="keywords" meta.keywordsubtype="org" meta.entityname="Aditya Birla Group" meta.hostid="261" meta.entityid="Aditya Birla Group">Aditya Birla Group</keyword> for alleged <keyword id="19895687" type="General" weightage="20" keywordseo="corruption" source="keywords">corruption</keyword> in getting environmental clearances for <keyword id="20054958" type="General" weightage="20" keywordseo="coal-mining" source="keywords">coal mining</keyword> between 2011 and 2013, officials said on Tuesday. The agency has also named T Chandini, the then director in the Union Ministry of Environment and Forests, for favouring the company as member secretary of the Expert Appraisal Committee ((EAC) in allowing mining in the Talabira-I mine in the critically polluted area of Odisha's Jharsuguda in violation of ministry guidelines, they said. <br /><br />The central probe agency registered an FIR against Hindalco and Chandini under Section 120-B (criminal conspiracy) of the Indian Penal Code and provisions of the Prevention of Corruption Act after a nearly eight-year-long preliminary inquiry. <br /><br />Reacting to the FIR, a Hindalco spokesperson said, "This is an old matter pertaining to 2014-15. These mines were de-allocated as part of the government's de-allocation process. This is a matter of public record where more than 100 mines were de-allocated." <br /><br />The Central Bureau of Investigation (CBI) registered the preliminary inquiry in 2016 on allegations that the Aditya Birla Management Corporation Private Limited (ABMCPL) had allegedly paid "massive bribes" between 2011 and 2013 to ministry officials for getting mandatory <keyword id="20082436" type="General" weightage="20" keywordseo="environmental-clearance" source="keywords">environmental clearance</keyword> to mine coal from Talabira. <br /><br />The findings of the inquiry showed that the ministry had made it mandatory in 2006 for a company to seek environment clearances for all new projects, expansion of existing products and any change in the product mix in an existing manufacturing unit. <br /><br />The projects needing prior environmental clearance were supposed to go through the EAC, consisting of experts from different disciplines. The clearance was given by the regulatory authority based on the EAC's recommendation. <br /><br />Hindalco received its first environmental clearance in 2001 for mining 0.4 million tonnes per annum (MTPA) of coal from the Talabira-I mine. Another clearance was given in January 2009 for its expansion, allowing the increase in mining from 0.4 MTPA to 1.5 MTPA. <br /><br />Nearly a month after the second clearance, the company sought to double its capacity to 3 MTPA, which was to be considered by the EAC, it said. <br /><br />It emerged that the company had allegedly violated clearances given in 2001 and 2009 by producing more coal than permitted by the ministry, the FIR said. <br /><br />The company allegedly mined 3.04 MTPA excess coal from 2004-05 to 2007-08 and 2008-09, it said. <br /><br />"This fact became known during the process of consideration by the EAC of which T Chandini, director, was the member secretary," the FIR alleged. <br /><br />The Odisha State Pollution Control Board and the Central Pollution Control Board confirmed during the inquiry that the Talabira mine was in the critically polluted area of Jharsuguda, the CBI alleged. <br /><br />According to ministry rules, in-pipeline projects in critically polluted areas or those applying after January 13, 2010, were to be returned to the project proponent by member secretaries with the approval of the advisor. <br /><br />The inquiry showed that Chandini, despite being fully aware that the company was mining excess coal in violation of previous environmental clearances, did not return the project, as stipulated in the ministry circular. <br /><br />"Rather she acted to the contrary in as much as the proposal of HIL (Hindalco) was continued to be processed which amounted to misuse of her official position to favour HIL," the CBI FIR has alleged. <br /><br />Chandini, by misusing her official position, communicated to Hindalco that their proposal for grant environmental clearance would be considered in the next meeting of the EAC to be held on February 25 and 25, 2010, the agency alleged. <br /><br />She allegedly ensured that the clearance was granted in haste, considering the fact that Hindalco was already in violation of earlier clearances granted by the ministry, as it was already mining excess coal from the Talabira-I coal mine, it said.<br /><br /><b>SEE ALSO:<a href="https://www.businessinsider.in/stock-market/webstories/unicommerce-esolutions-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112307438.cms" target="_blank"></a></b><br /><br /> <b><a href="https://www.businessinsider.in/stock-market/webstories/unicommerce-esolutions-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/112307438.cms" target="_blank">Unicommerce eSolutions IPO – Price band to risk factors, all you need to know</a></b><b> <a href="https://www.businessinsider.in/business/auto/news/electric-two-wheeler-sales-cross-the-1-lakh-mark-after-four-months-ola-electric-leads-the-market/articleshow/112288793.cms" target="_blank"></a></b><br /><br /> <b><a href="https://www.businessinsider.in/business/auto/news/electric-two-wheeler-sales-cross-the-1-lakh-mark-after-four-months-ola-electric-leads-the-market/articleshow/112288793.cms" target="_blank">Electric two-wheeler sales cross the 1 lakh mark after four months, Ola Electric leads the market</a></b><br /><br /> <b><a href="https://www.businessinsider.in/sports/news/neeraj-chopras-paris-olympics-journey-to-begin-with-qualification-round-today-top-rivals-to-look-out-for/articleshow/112311760.cms">Neeraj Chopra qualifies for finals with a first throw of 89.34m – top rivals to look out for</a></b><br />

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10 financial scams that shook India: A dive into deception

Ashmita Gupta

Three die of asphyxiation at illegal coal mine in Gujarat

PTI

CBI books Hindalco for corruption in green clearance for Talabira coal mining

PTI

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