Billion-Dollar Scams Rock India: A Look Back at Five Infamous Cases

India has witnessed several high-profile scams in recent years, sending shockwaves through the country’s financial system. From stock market manipulation to banking frauds, these scams have left investors and citizens wondering how such massive frauds could occur under their noses.

Harshad Mehta Scam (1992)

The Harshad Mehta scam is considered one of the largest and most infamous in Indian history. The well-known stockbroker manipulated the stock market, causing a surge in prices that led to a crash when the truth came out. Mehta was accused of cheating, bribery, forgery, and criminal conspiracy, among other charges. He was convicted and sentenced to 5 years in prison.

Vijay Mallya’s Kingfisher Airlines Scam (2005-2013)

Vijay Mallya, the founder of Kingfisher Airlines, is accused of defaulting on loans worth Rs. 9,000 crores from various public sector banks. He fled India in 2016 and was later declared a fugitive offender. The Debt Recovery Tribunal held him and his company liable for Rs. 6,963 crores.

PNB Bank Scam (2018)

The Punjab National Bank scam is considered one of the biggest frauds in Indian banking history. Fraudulent letters of undertaking worth Rs. 11,000 crores were issued by a bank branch in Mumbai, allowing accused Nirav Modi and others to withdraw funds from other banks. The CBI investigation led to the arrest of several bankers and accused individuals.

Ketan Parekh Stock Market Scam (2001)

Ketan Parekh, a chartered accountant, manipulated the stock market by syphoning off public funds worth Rs. 1,200 crores. He was arrested and sentenced to 1 year in prison and banned from trading for 15 years.

ICICI-Videocon Scam (2009-2011)

The ICICI-Videocon scam involved loans worth Rs. 1,875 crores given to the Videocon group, controlled by industrialist Venugopal Dhoot. The CEO of ICICI Bank at the time, Chanda Kochhar, was accused of approving these loans in violation of banking regulations and policies.

Conclusion

These cases highlight the need for stricter regulation and enforcement to prevent such massive frauds from occurring in the future. They also serve as a reminder that even the most well-established companies and individuals can fall prey to greed and corruption.