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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

New Delhi [India], June 21 (ANI): In a bid to increase the <keyword id="19922489" type="General" weightage="20" keywordseo="coal-production" source="keywords">coal production</keyword> in India, the Union Minister of Coal and Mines G Kishan Reddy will launch the 10th round of the <keyword id="22130340" type="General" weightage="20" keywordseo="commercial-coal-block-auction" source="keywords">commercial coal block auction</keyword> on Friday.<br /><br />According to a statement by the <keyword id="20786311" type="General" weightage="20" keywordseo="Union-Ministry-of-Coal" source="keywords" meta.keywordsubtype="org" meta.entityname="Union Ministry of Coal" meta.hostid="153" meta.entityid="Union Ministry of Coal">Union Ministry of Coal</keyword>, in this round of coal auction, 60 blocks will be offered.<br /><br />The <keyword id="19983406" type="General" weightage="20" keywordseo="Coal-India-Limited" source="keywords" meta.keywordsubtype="org" meta.entityname="Coal India Limited" meta.hostid="153" meta.entityid="Coal India Limited">Coal India Limited</keyword> (CIL) had previously awarded 23 <keyword id="20434014" type="General" weightage="20" keywordseo="coal-mines" source="keywords">coal mines</keyword> to private sector bidders under a revenue-sharing model, aiming to exploit the latent coal reserves in some of its closed and discontinued underground mines.<br /><br />The coal mines in the 10th round of allocation are located in Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Telangana and West Bengal. Sixteen mines will be offered in Odisha, followed by Chattisgarh and Madhya Pradesh where 15 coal mines will be auctioned. <br /><br />According to the <keyword id="19923650" type="General" weightage="20" keywordseo="ministry-of-coal" source="keywords" topicspecial.url="https://economictimes.indiatimes.com/news/ministry-of-coal">Ministry of Coal</keyword>, so far it has allocated/ auctioned 161 coal mines with peak rated capacity of 575 MT. Out of which 58 mines have received mine opening permission and 54 mines are into operation. Last year these mines have produced total of 147 MT of coal, which constitutes 15 per cent of the total coal production of the country<br /><br />The Commercial coal block auction was launched by the Prime Minister in 2020. Since then, the Ministry has successfully auctioned 107 coal blocks during the last nine rounds. So far, 11 commercial coal blocks have been operationalized in the country. <br /><br />On the 23 coal mines given to the private bidders <keyword id="19903245" type="General" weightage="100" keywordseo="coal-india" source="keywords" topicspecial.url="https://economictimes.indiatimes.com/coal-india-ltd/stocks/companyid-11822.cms">Coal India</keyword> said "The cumulative peak rated capacity of these mines is 34.14 million tonnes/year (MT/Y) while the total extractable reserves are estimated at 635 MT".<br /><br />Coal India identified 34 discontinued mines with dormant good-quality coal reserves that were not financially viable for the company to mine.<br /><br />As a result, CIL decided to tender and offer these mines to willing private sector players who could operate them, produce the dry fuel, and share parts of the revenue with CIL.<br /><br />The successful bidder would be the one offering the maximum revenue to the company. "The minimum revenue to be shared is 4 per cent. The contract period is for a maximum of 25 years," the company stated.<br /><br />The company added that this move is advantageous in several ways, including resource conservation, effective substitution of imported coal for the non-regulated sector, and providing livelihoods to local communities where these mines are revived. Environmentally, there would be no land degradation as the mining infrastructure is already in place.<br /><br />CIL is also identifying additional mines to attract wider participation, with relaxed bid norms.<br /><br />For coal sold exclusively for coal gasification or coal liquefaction, 50 per cent of the contracted percentage of revenue share will be provided to the operator.<br /><br />Coal India said that the successful bidder or mine operator will take over the mine on an "as is where is" basis and can use the existing infrastructure and project facilities without additional payment to Coal India.<br /><br />In case of a consortium, foreign bidders are allowed to participate as the second or third members, according to the Government e-Marketplace (GeM) portal. The mine operator will act as the agency responsible for selling coal mined from these mines at market-driven prices through an auction process on behalf of the authority. They will have the freedom to choose their preferred technology and deploy mining machinery to extract coal from the mines.<br /><br />Of the 34 identified mines, West Bengal-based Eastern Coalfields Limited and Jharkhand-based Bharat Coking Coal Limited account for 10 each. Western Coalfields Limited has 5, South Eastern Coalfields Limited has 4, Mahanadi Coalfields Limited has 3, and Central Coalfields Limited has 2.<br />

In a bid to increase domestic coal output, Centre to auction 60 coal blocks today

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10 financial scams that shook India: A dive into deception

Ashmita Gupta

In a bid to increase domestic coal output, Centre to auction 60 coal blocks today

ANI

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