Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>The government is considering the Reserve Bank of India for regulatory job for <keyword id="1187157" type="PERSON" weightage="20" keywordseo="non-banking-financial-institutions">Non-banking financial institutions</keyword>, amid rising crisis. </li><li>Presently, the National Housing Board (NHB) regulates the non-housing financial institutions with an RBI executive director as a board member. </li></ul> The Finance Minister empowered the RBI to regulate <keyword id="100080" type="DOMAIN" weightage="20" keywordseo="housing-finance">housing finance</keyword> companies, in her Budget speech today. "The National Housing Bank (NHB), besides being the refinancer and lender, is also regulator of the housing finance sector. This gives a somewhat conflicting and difficult mandate to NHB. I am proposing to return the regulation authority over the housing finance sector from NHB to RBI. Necessary proposals have been placed in the Finance Bill," she said. In addition, Sitharaman also gave more teeth to the RBI to regulate non-banking finance companies (NBFCs). And, these measures will be taken up in the Finance Bill. "Further, RBI is the regulator for NBFCs. However, RBI has limited regulatory authority over them. Appropriate proposals for strengthening the regulatory authority of RBI over NBFCs are being placed in the Finance Bill," said the FM. This move comes after <keyword id="6359111" type="UNKNOWN" weightage="20" keywordseo="Shaktikanta-Das">Shaktikanta Das</keyword>, the Governor of the Reserve Bank of India, in a press meeting last month <a href="https://www.businessinsider.in/dhfl-crisis-rbi-governor-shaktikanta-das-on-high-alert/articleshow/69674581.cms">said</a> that the central bank could step in to address the ongoing crisis in the non-banking financial institutions. “We will not hesitate to take steps to ensure the financial stability is not adversely affected,” the governor said, adding that if some action is required, it will be taken. Das has then said that while housing finance companies do come under RBI’s purview, they are concerned as they have been affecting the financial health of banks, which they regulate. Last month, one of country’s largest housing finance companies <keyword id="6423706" type="DOMAIN" weightage="20" keywordseo="dewan-housing-finance">Dewan Housing Finance</keyword> Limited (DHFL) entered the red zone as it is as <keyword id="6354972" type="DOMAIN" weightage="20" keywordseo="icra">ICRA</keyword> downgraded its debt further to the default zone. It has piled up as much as ₹ 380 billion in debt, and its lenders are considering <a href="https://www.livemint.com/companies/news/lenders-to-sign-inter-creditor-agreement-by-5-july-to-resolve-stress-in-dhfl-1561998176253.html">re-casting the loan</a>. The housing finance sector is under stress as very few of them are disbursing loans, and many face their own financial problems. There are 82 HFCs in India, but more than 90 per cent of the housing finance market is controlled by top five companies. SEE ALSO: <a href="https://www.businessinsider.in/dhfl-crisis-rbi-governor-shaktikanta-das-on-high-alert/articleshow/69674581.cms">India’s central bank is on high alert amid fears of a ₹8.5 billion default by housing finance major</a>

Budget 2019: RBI will regulate housing finance companies, tighten hold on NBFCs

New Delhi, <keyword id="10062958" type="UNKNOWN" weightage="20" keywordseo="transaction-auditor-grant-thornton">Transaction auditor Grant Thornton</keyword>, in a report shared with the <keyword id="57372" type="COMPANY" weightage="20" keywordseo="Administrator">Administrator</keyword> of <keyword id="127124" type="CITY" weightage="20" keywordseo="DHFL">DHFL</keyword>, has found certain transactions which are undervalued, fraudulent and preferential in nature, putting the newly-discovered fraud at ₹6,182 crore. The Administrator of <keyword id="6423706" type="DOMAIN" weightage="20" keywordseo="dewan-housing-finance">Dewan Housing Finance</keyword> Company Ltd, appointed under the Insolvency and Bankruptcy Code, 2016 to carry out the duties under it, obtained assistance from <keyword id="10802312" type="UNKNOWN" weightage="20" keywordseo="reputed-professional-agency">reputed professional agency</keyword>, Grant Thornton to conduct investigation of the affairs of the company in respect of transactions qualified under sections 43 to 51, and sections 65 and 66 of the Code. Accordingly, the Administrator of the Company received an initial report from the professional agency appointed as the transaction auditor, indicating that there are certain transactions which are undervalued, fraudulent and preferential in nature, falling under the aforesaid sections of the Code, as per a filing. On basis of the investigation and observations of the transaction auditor, the Administrator has filed an application before the Mumbai bench of the <keyword id="6354457" type="COMPANY" weightage="20" keywordseo="National-Company-Law-Tribunal">National Company Law Tribunal</keyword> (NCLT) under Section 45, Section 60(5) and Section 66 of the Code on February 20, 2021 in respect of disbursement made to certain entities as other large project loans (OLPL), against Kapil Wadhawan, <keyword id="2992416" type="PERSON" weightage="20" keywordseo="Dheeraj-Wadhawan">Dheeraj Wadhawan</keyword>, Creatoz Builders Pvt Ltd, Ikshudip Fincap Pvt Ltd, Rite Developers Pvt Ltd and certain other entities. It is to be noted that further filings may be undertaken, in due course. The nature of fraud is in relation to irregularities in disbursement of OLPL loans by the company in the past. As per the transaction auditor report shared with the Administrator, the monetary impact of the above transactions covered under the application amounts to ₹5,381.90 crore towards outstanding principal, ₹589.36 crore towards accrued interest and ₹210.85 crore towards notional loss of interest on account of charging lower rate of interest. Thus, the total impact of such transactions, as detailed in the transaction auditor's report, has been sought from the relevant entities involved, along with the interest for the relevant period, through the said application filed with NCLT. As per the report prepared by the transaction auditor, the concerned transactions occurred over a period of time, detailed in the report. Based on the report, the application has been filed with NCLT, Mumbai against 33 respondents, including Kapil Wadhawan, Dheeraj Wadhawan, Creatoz Builders Pvt Ltd, Ikshudip Fincap Pvt Ltd, Rite Developers Pvt Ltd and certain other entities. The preliminary estimation included in the application places the monetary impact of the concerned transactions at approximately ₹6,182.11 crore (which includes ₹210.85 crore towards notional loss of interest on account of charging lower rate of interest). All relevant details regarding these proceedings have been included in the application filed before the National Company Law Tribunal, Mumbai and is presently pending consideration. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/nurecas-100-crore-ipo-heres-how-to-check-share-allotment-status/articleshow/81135236.cms">Nureca’s ₹100 crore IPO: Here’s how to check share allotment status</a> <a href="https://www.businessinsider.in/travel/article/exploring-the-unreal-beauty-of-the-andaman-islands/articleshow/81126293.cms">Exploring the unreal beauty of the Andaman Islands</a> <a href="https://www.businessinsider.in/stock-market/news/happiest-minds-is-leveraging-its-partnerships-with-big-players-like-google-microsoft-aws-salesforce/articleshow/81105035.cms">Happiest Minds is a smaller company that does the same thing as MindTree and L&amp;T Infotech — but clearly it is doing it a lot better</a>

Fraudulent transactions of ₹6,182 crore in DHFL unearthed

<ul><li><keyword id="7271887" type="UNKNOWN" weightage="20" keywordseo="dhfl-promoters">DHFL promoters</keyword> Kapil and Dheeraj Wadhawan have been taken into custody by the Central Bureau of Investigation (CBI) for their role in the <keyword id="8878575" type="UNKNOWN" weightage="20" keywordseo="yes-bank-scam">Yes Bank scam</keyword> case.</li><li>The brothers' trip to Mahabaleshwar was not in violation of the nationwide lockdown, but also the conditions of their bail.</li><li>An inquiry has also been initiated against Maharashtra's home department principal secretary Amitabh Gupta for giving the Wadhawans' permission to travel during the lockdown citing a 'family emergency'.</li></ul> The Central Bureau of Investigation (CBI) has taken Diwan Housing Finance Limited (DHFL) promoters Kapil and Dheeraj Wadhawan into custody for their involvement Yes Bank scam case. "The Satara Police has extended to the CBI all required assistance and an escort vehicle with guards up to Mumbai on a written request. The arrest procedures are going on," said Maharashtra Home Minister Anil Deshmukh. They were granted protection from arrest even though there was an FIR in their name registered under the Prevention of Money Laundering Act (PMLA). The two had been staying at a government guest house in Panchgani along with 21 other family members for violating lockdown rules, according Deshmukh. They had been placed under institutional quarantine at the location on April 9 after it was revealed that the family had travelled from the Khandala to the family’s farmhouse in Mahabaleshwar. Not only did the trip violate the nationwide lockdown but it was also in violation of their bail conditions, according to Poornima Kantharia, Maharashtra’s government pleader. DHFL’s Wadhawan brothers had filed for anticipatory bail which was opposed by the Enforcement Directorate (ED). Earlier this week the Maharashtra police requested the CBI to take the Wadhawan brothers into custody. "Upon the completion of their institutional quarantine period, the family has been shifted to their property in Mahabaleshwar till 6 May," said the senior official of Satara police. An inquiry has also been initiated against Maharashtra's home department principal secretary Amitabh Gupta for giving the Wadhawans' permission to travel during the lockdown citing a 'family emergency'. he is already under 'compulsory leave'. Gupta gave the family consent to travel in five vehicles. However, once they reached Mahabaleshwar it sparked a huge political row. DHFL’s involvement in the Yes Bank fraud case Yes Bank co-founder Rana Kapoor allegedly entered into a criminal conspiracy with <keyword id="152129" type="COMPANY" weightage="20" keywordseo="Kapil-Wadhawan">Kapil Wadhawan</keyword>, according to the CBI. The scheme was that loans from Yes Bank were authorised for DHFL but ended up in the hands of companies, which were owned by Kapoor’s daughters, like DoIt Urban Ventures. Between April and June 2018, the CBI believes that Yes Bank invested approximately ₹3,700 crore in short-term debentures of DHFL. In addition, the bank also sanctioned a loan of ₹750 crore to RKW Developers, a DHFL group company, which had the other Wadhawan brother — Dheeraj — listed as the director. That entire loan was transferred from RKW Developers to DHFL without investing anything in the Bandra reclamation project, for which it was sanctioned. DHFL has allegedly siphoned off ₹31,000 crore from loans worth ₹97,000 crore from Yes Bank using a web of multiple shell companies. See also: <a href="https://www.businessinsider.in/india/news/pm-modi-says-indias-fight-against-coronavirus-is-people-driven/articleshow/75387305.cms">PM Modi says India's fight against Coronavirus is 'people-driven'</a> <a href="https://www.businessinsider.in/india/news/lockdown-may-be-extended-in-covid-19-hit-urban-areas-of-maha/articleshow/75386981.cms">Coronavirus lockdown may extend beyond May 3 in urban areas of Maharashtra</a> <a href="https://www.businessinsider.in/entertainment/news/doordarshan-has-plans-to-bring-back-shri-krishna-after-20-years/articleshow/75387419.cms">Doordarshan has plans to bring back 'Shri Krishna' after 20 years</a>

Yes Bank scam: DHFL's Kapil and Dheeraj Wadhawan taken into custody by CBI

Keeping the upcoming festive season and growing online frauds in mind, <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> on Tuesday announced a partnership with <keyword id="72592" type="CITY" weightage="20" keywordseo="Bajaj-Allianz">Bajaj Allianz</keyword> General Insurance Company to offer ‘Digital Suraksha Group Insurance for customers in the country. The "Digital Suraksha Group Insurance" policy will cover financial losses caused by various kinds of online frauds and cyber attacks that might occur during digital transactions. The customers can choose for a one-year cover at premiums as low as Rs 183 for a cover of Rs 50,000, Rs 312 for Rs 1 lakh, and Rs 561 for Rs 2 lakh for a 12-months tenure, with covers also extending up to Rs 10 lakh. "As the festive season nears, we want to ensure that the customers' online shopping experience, across any digital medium, is devoid of stress and apprehensions," said Ranjith Boyanapalli, Head, Fintech and Payments Group, Flipkart. The policy can be availed while buying certain models of mobiles, laptops, tablets, and audio devices on Flipkart. The insurance compensates for direct financial loss (up to the sum insured) due to unauthorised digital financial transactions as a result of identity theft arising out of cyber attacks, phishing/spoofing and SIM-jacking. The policy covers online transactions for debit cards, credit card, digital wallets, UPI/Internet banking (All bank accounts, credit and debit cards and mobile wallets), the company said in a statement. "With this Digital Suraksha Group Insurance introduced on Flipkart's platform, at less than 50 paise per day, you can protect yourself against the financial risk of getting defrauded online," said Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance. The claim is admissible if a loss of funds is reported within 90 days of the occurrence and multiple claims/incidents are covered up to the sum insured. The policy offers worldwide cover and offers protection while travelling international. "During this Covid-19 era, as you shop online, this insurance will provide coverage against various cyber threats, thus making your online experience worry-free," Singhel said. SEE ALSO: <a href="https://www.businessinsider.in/thelife/personalities/news/google-doodle-celebrates-zohra-sehgal-everyones-favourite-dadi-an-indian-royal-and-doctor-who-star/articleshow/78377815.cms">Google Doodle celebrates Zohra Sehgal — Everyone's favourite dadi, an Indian royal and Doctor Who star</a> <a href="https://www.businessinsider.in/business/startups/news/super30-alumni-founded-startup-wants-to-take-forward-the-legacy-of-his-alma-mater/articleshow/78377011.cms">Super30 alumni founded startup wants to take forward the legacy of his alma mater</a> <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-infosys-central-bank-of-india-dhfl-anuh-pharma-shalby-balaji-telefilms-and-others/articleshow/78376167.cms">Top stocks to watch— Infosys, Central Bank of India, DHFL, Anuh Pharma, Shalby, Balaji Telefilms and others</a>

Flipkart partners with Bajaj Allianz to offer cyber fraud insurance for online transactions

<ul><li><keyword id="1907998" type="ORGANIZATION" weightage="20" keywordseo="PMC-Bank">PMC Bank</keyword> is known to have lent to HDIL using over 20,000 bogus accounts. </li><li><keyword id="178285" type="COMPANY" weightage="20" keywordseo="Laxmi-Vilas-Bank">Laxmi Vilas Bank</keyword>’s directors are being investigated in a case of missing FDs. </li><li><keyword id="127124" type="CITY" weightage="20" keywordseo="DHFL">DHFL</keyword>’s senior citizen investors are left in the lurch as it is being investigated by police for underworld links. </li><li>Religare Finvest alleged that the former promoters— the SIngh brothers — have stripped the company of its assets. </li></ul>Those who choose not to remember 2019 as a year of slowdown can remember it as a year of banking failures. PMC Bank, a large <keyword id="174493" type="COMPANY" weightage="20" keywordseo="Commercial-Bank">commercial bank</keyword> with 1.6 million depositors fell this year, almost two decades after a co-operative bank called Krushi Bank went defunct. History repeated itself with heart aches and heart attacks to depositors. There is more to worry about as other banks might be in the throes of trouble as well. The banking regulator the Reserve Bank of India (RBI) admitted that ₹71,500 crore worth of bank <a href="https://economictimes.indiatimes.com/news/economy/finance/bank-fraud-touches-rs-71543-crore-in-2018-19-rbi-annual-report/articleshow/70895326.cms">frauds have been </a>detected in 2018-19. To remedy this situation, yesterday the Central Bureau of Investigation (CBI) started conducting raids across 11 states in the country yesterday, in hopes of recovering what banks had lost. Here are the troubles that rocked the banking sector this year.

Slowdown or not, these India’s banks and shadow banks are in trouble

<ul><li>India's benchmark stock indices Sensex and Nifty have been volatile in early trade.</li><li>High-stakes election that has kicked off today has kept a lid on market bets.</li><li>The country's stock traders are mostly positioned for another win for Narendra Modi-led BJP.</li></ul> Markets around the world have been a bit shaken by the American central bank's cautious view of the world's largest economy. Global investors fear that any turbulence in the US could rattle the entire world. The market confidence in India, the world's fastest-growing economy, is further capped by the Parliamentary elections that have kicked off today (April 11). Benchmark indices, Sensex and Nifty, see-sawed in early trade, rising above only to slide below the closing count a day before. Meanwhile, 142 million voters in 20 states and union territories are expected to vote in the first phase of voting for the seventeenth general election in the country. Stocks in the auto, financial services, and fast-moving consumer goods space were in the green, but only slightly, while all other sectoral indices slid lower on the National Stock Exchange. Reports of fresh capital infusion by the government into state-owned banks did not boost the sentiment. Even the robust bidding for luxury cars owned by fugitive diamantaire Nirav Modi did not help the <a href="https://www.hindustantimes.com/mumbai-news/bid-for-nirav-modi-s-luxury-cars-from-rs-2-38-lakh-to-rs-1-33-crore/story-LvG46FN96vUVg8rU78RfpO.html" data-type="tilCustomLink" target="_blank">shares of Punjab National Bank</a>, one of the victims of the loan frauds by Modi's company. One of the biggest worries in the minds of the domestic investors is the money that is stuck with the mutual funds. Kotak Mahindra Asset Management Company <a href="https://www.moneycontrol.com/news/business/opinion-the-risk-in-fixed-maturity-plans-is-now-out-in-the-open-3801541.html" data-type="tilCustomLink" target="_blank">has reportedly written to those who invested</a> in one of its fixed maturity plans that it will not be able to pay the entire redemption amount now. Small investors who are risk averse pick fixed maturity plans. The money pooled is lent to companies with the assurance that people can take investments back after a fixed amount of time and definite returns. Of course, the market risks associated with mutual funds remain. In this case, because the borrower has sought more time to repay the loans, the mutual fund has sought more time from its investors before the fund can be redeemed. The case of <keyword id="533729" type="COMPANY" weightage="20" keywordseo="Kotak-Mahindra-AMC">Kotak Mahindra AMC</keyword> is one of the many mutual funds who are left only with prayers to recover the billions of investment in beleaguered companies like Infrastructure Finance and Leasing Services (IL&amp;FS), Essel Group, and Dewan Housing Finance among others. The risks that have emerged from the unraveling crisis in India's shadow banking sector has shaken market confidence. Indian equities fell sharply on Wednesday too, after the International Monetary Fund (IMF) revised down the global growth forecast fuelling fears of a global slowdown. Caution was also seen among investors ahead of the start of earning season and for fresh trade tensions between the US and the European Union. SEE ALSO: <a href="https://www.businessinsider.in/lok-sabha-elections-2019-first-phase-of-polling-key-issues-in-all-states/articleshow/68824300.cms" data-type="tilCustomLink" target="_blank">142 million voters go to polls today in 20 states— here’s a look at the key issues in every state</a> <a href="https://www.businessinsider.in/jammu-and-kashmir-lok-sabha-elections-2019-key-issues-affecting-voter-sentiment/articleshow/68822326.cmshttps://www.businessinsider.in/jammu-and-kashmir-lok-sabha-elections-2019-key-issues-affecting-voter-sentiment/articleshow/68822326.cms" target="_blank">Democracy’s appeal is under test in the shadow of the world’s highest battleground</a> <a href="https://www.businessinsider.in/maharashtra-lok-sabha-elections-2019-first-phase-polling-will-see-angry-farmers-voting/articleshow/68820156.cms" target="_blank">This state going to polls today is the picture of India's rising inequality</a>

India's 2019 election is only one of the market's many worries

<ul><li><keyword id="9356171" type="UNKNOWN" weightage="20" keywordseo="private-sector-lender-karnataka-bank">Private sector lender Karnataka Bank</keyword> has reported to the RBI that it has been defrauded of over Rs 285 crore consequent to loans gone bad to four entities including DHFL.</li><li>A total of Rs 285.52 crore has been reported as fraud wherein the bank was one of the consortium lenders during 2009 to 2014 to <keyword id="533676" type="DOMAIN" weightage="20" keywordseo="Dewan-Housing-Finance-Corporation-Ltd">Dewan Housing Finance Corporation Ltd</keyword> (DHFL), Religare Finvest, <keyword id="9356169" type="COMPANY" weightage="20" keywordseo="fedders-electric-and-engineering-ltd">Fedders Electric and Engineering Ltd</keyword> and Leel Electricals Ltd, <keyword id="66845" type="COMPANY" weightage="20" keywordseo="Karnataka-Bank">Karnataka Bank</keyword> said in a regulatory filing.</li><li><keyword id="9356168" type="COMPANY" weightage="20" keywordseo="fedders-electric-and-engineering-limited">Fedders Electric and Engineering Limited</keyword> was reported as NPA in July 2018 by a member bank in consortium, subsequent to which Karnataka Bank reported fraud of Rs 41.30 crore on account of fund diversion.</li></ul>Private sector lender Karnataka Bank has reported to the RBI that it has been defrauded of over Rs 285 crore consequent to loans gone bad to four entities including DHFL. A total of Rs 285.52 crore has been reported as fraud wherein the bank was one of the consortium lenders during 2009 to 2014 to Dewan Housing Finance Corporation Ltd (DHFL), Religare Finvest, Fedders Electric and Engineering Ltd and Leel Electricals Ltd, Karnataka Bank said in a regulatory filing on Friday. The maximum is owed by DHFL at Rs 180.13 crore, followed by Religare Finvest Rs 43.44 crore, Fedders Electric Rs 41.30 crore and Leel Electricals Rs 20.65 crore. "DHFL (defaulted entity) dealing with us since 2014 had availed various credit facilities under consortium arrangement wherein, we were one of the member banks. In view of Early Warning Signals (EWS) in the conduct of the account and other developments, the account was red flagged on November 11, 2019. "The borrowing account was classified as Non-Performing Asset on October 30, 2019 and now, for misappropriation &amp; criminal breach of trust &amp; diversion of funds in the credit facilities extended earlier to the company, a fraud amounting Rs 180.13 crore has been reported to RBI," Karnataka Bank said. Likewise, Religare Finvest Ltd (RFL) was dealing with the bank since 2014, availing various credit facilities. Following classification of this account as non-performing in October 2019 by a consortium member, Karnataka Bank reported to RBI a fraud amounting to Rs 43.44 crore in the credit facilities extended earlier, on account of diversion of funds. Leel Electricals was classified as NPA account in March 2019 and it reported to RBI a fraud amounting to Rs 20.65 crore in the credit facilities to the company on account of diversion of funds. "In all the referred three non-performing accounts, necessary provisions have been made in full to be spread across four quarters," it said. Fedders Electric and Engineering Limited was reported as NPA in July 2018 by a member bank in consortium, subsequent to which Karnataka Bank reported fraud of Rs 41.30 crore on account of fund diversion. The account has already been fully provided for, it added. KPM ABM ABM

Karnataka Bank reports ₹285 crore fraud in four loan accounts

<ul><li>Nirmala Sitharaman increased the guarantee that the government offers depositors as banks fail – from ₹1 lakh to ₹5 lakh. </li><li>This is the first time in 59 years that the government moved to increase <keyword id="1127487" type="ORGANIZATION" weightage="20" keywordseo="Deposit-Insurance">deposit insurance</keyword>, after 1961. </li><li>The Deposit Insurance and Credit Guarantee Corporation received<a href="https://www.businessinsider.in/business/news/deposit-insurance-corporation-sees-rs-14100-cr-claims-amid-pmc-crisis/articleshow/73016977.cms"> total claims of</a> ₹14,100 crore. </li></ul>After <a href="https://economictimes.indiatimes.com/industry/banking/finance/banking/the-collapse-of-pmc-exposes-the-fault-lines-in-the-financial-system-/articleshow/71402139.cms">the PMC bank crisis </a>resulted in deaths and suicides of depositors, a lot of customers have been on the edge. The Finance Minister Nirmala Sitharaman today increased the guarantee that the government offers depositors as banks fail – from ₹1 lakh to ₹5 lakh. “A robust mechanism is in place to monitor the health of all banks and the money of depositors are safe,” Sitharaman said in her Budget speech. This is the first time in 59 years that the government moved to increase deposit insurance, after 1961. The five-fold increase is much higher than the market expectations of doubling deposit insurance offered by the government. A deposit insurance scheme is the government’s way of compensating small depositors. The rest of the money will have to be forfeited by the depositors in case a bank shutters down like in the case of PMC Bank, leaving thousands of customers in dire straits. "Bank depositors get a shot in the arm with the upward revision in deposit insurance cover. While this could mean some expenditure for the Bank, this would certainly give comfort to retail savers," said R K Gurumurthy, head of treasury at Lakhsmi Vilas Bank. Last month, the Deposit Insurance and Credit Guarantee Corporation received<a href="https://www.businessinsider.in/business/news/deposit-insurance-corporation-sees-rs-14100-cr-claims-amid-pmc-crisis/articleshow/73016977.cms"> total claims of</a> ₹14,100 crore after the PMC bank scam. Bank frauds had remained dormant for decades: RBI After the scam, millions of customers across all co-operative banks have been worried as panic spread. This was compounded by the fact that the Reserve Bank also sounded an alarm in its financial stability report on the number<a href="https://www.businessinsider.in/policy/economy/news/rbi-financial-stability-report-finds-billions-lost-in-bank-fraud-this-year/articleshow/72998905.cms"> of bank frauds</a>. In the first six months of FY20, as many as ₹2.6 lakh crore worth bank frauds were unearthed by the banking regulator. The report also said that some of these schemes have remained hidden from 2000-01 which was the time that the first dotcom bust occurred. All this and the fall of large financial institutions like IL&amp;FS and DHFL, exposed the many loopholes in the banking system. However, the government chose to expand its own guarantee of these troubled banks instead of taking penal action on the management of these institutions.

India Budget 2020: Bank scam victims are assured of ₹5 lakh instead of ₹1 lakh

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. 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: <h2><keyword id="20713434" type="General" weightage="20" keywordseo="harshad-mehta" source="keywords">Harshad Mehta</keyword> Scam (1992) – ₹4,000 Crore </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. 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. <h2><keyword id="23122396" type="General" weightage="20" keywordseo="satyam-scam" source="keywords">Satyam Scam</keyword> (2009) – ₹14,000 Crore </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. 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. <h2>Punjab National Bank Scam (2018) – ₹13,700 Crore </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. 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. <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. 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. <h2>Saradha Chit Fund Scam (2013) – ₹2,500 Crore </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. 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. <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> <h2><keyword id="6560832" type="General" weightage="20" keywordseo="2g-spectrum-scam" source="Orion">2G Spectrum Scam</keyword> (2008) – ₹1,76,000 Crore </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. Sadly, all key figures involved were acquitted despite the Supreme Court’s intervention and cancellation of 122 telecom licences. <h2><keyword id="455134" type="General" weightage="20" keywordseo="coal-allocation-scam" source="Orion">Coal Allocation Scam</keyword> (Coalgate) (2012) – ₹1,86,000 Crore </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. While some officials faced legal consequences, many key players were not prosecuted. But it did trigger policy reforms in the allocation of natural resources. <h2>DHFL Scam (2019) – ₹34,615 Crore </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. The case is ongoing, and the main accused are in custody. For now, regulations governing non-banking financial companies (NBFCs) have been strengthened. <h2>Yes Bank Crisis (2020) – ₹3,788 Crore </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. 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. <h2>Commonwealth Games Scam (2010) – ₹70,000 Crore </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. 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. 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. <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>

10 financial scams that shook India: A dive into deception

The CBI on Monday carried out searches at seven locations here in connection with a corruption case registered against Yes Bank founder <keyword id="128581" type="PERSON" weightage="20" keywordseo="Rana-Kapoor">Rana Kapoor</keyword>, Dewan Housing Finance Limited (DHFL) as well as its promoter Kapil Wadhawan. Primarily, the exact locations searched by the <keyword id="6354889" type="COMPANY" weightage="20" keywordseo="central-bureau-of-investigation">Central Bureau of Investigation</keyword> (CBI) teams were not known yet but agency sources confirmed that the places belonged to the accused named in the First Information Report (FIR). The CBI move came after the Enforcement Directorate arrested Kapoor on Sunday morning after over 30 hours of questioning in connection with a probe into a money laundering case involving DHFL. He was later sent in three-day ED custody by a Mumbai court. The CBI had registered a case of corruption, criminal conspiracy and cheating against Kapoor, a former MD and CEO of Yes Bank, DHFL and Wadhawan, on Sunday. The agency also named Doit Urban Ventures (India) Limited in its FIR registered under the Indian Penal Code and the Prevention of Corruption Act. The FIR mentions that Kapoor extended financial assistance to DHFL to get "substantial undue benefits" for himself and his family members through companies held by them. The case is being handled by the CBI's BS&amp;FC unit -- a specialised unit which looks into bank fraud cases across the country. The CBI has begun a probe into the short-term debentures of DHFL for which Yes Bank invested Rs 3,700 crore from April to June 2018. The probe is part of another investigation pertaining to Yes Bank's purchase of debentures from DHFL against which the company was granted loans totalling Rs 600 crore against a collateral security of around Rs 40 crore only. The loan amount later turned into <keyword id="463915" type="PERSON" weightage="20" keywordseo="non-performing-asset">non-performing asset</keyword>. It was alleged that DHFL's Wadhawan simultaneously paid kickbacks totalling Rs 600 crore to the Kapoors in the form of a loan of a similar amount to Doit Urban Ventures, a venture owned by his daughters -- Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor. It was also alleged that Yes Bank did not initiate action to recover the loans extended to DHFL.

You Searched For "dhfl fraud" and got 10 results

Budget 2019: RBI will regulate housing finance companies, tighten hold on NBFCs

BI India Bureau

Fraudulent transactions of ₹6,182 crore in DHFL unearthed

IANS

Yes Bank scam: DHFL's Kapil and Dheeraj Wadhawan taken into custody by CBI

Prabhjote Gill

Flipkart partners with Bajaj Allianz to offer cyber fraud insurance for online transactions

IANS

Slowdown or not, these India’s banks and shadow banks are in trouble

Katya Naidu

India's 2019 election is only one of the market's many worries

Sriram Iyer

Karnataka Bank reports ₹285 crore fraud in four loan accounts

PTI

India Budget 2020: Bank scam victims are assured of ₹5 lakh instead of ₹1 lakh

Katya Naidu

10 financial scams that shook India: A dive into deception

Ashmita Gupta

Rana Kapoor corruption case: CBI raids 7 locations in Mumbai

IANS

Popular Keywords

Buying Guides