Financial Frauds in India - The Info Seekers Hub

Financial Frauds in India

Financial frauds in india

In this article I am going to introduce you with top 10 financial frauds in India. Due to which our country had to suffer a lot. You all may have heard names but maybe you don’t know what actually was the matter. So in this article I will try to explain you about those financial frauds in brief. So read till the end.

1. Coal Allocation Scam (2012) :

Coal Allocation scam

In 2012, when it was government of Manmohan Singh, this Coal Allocation Scam (कोयला आवंटन घोटाला ) took place.

The Manmohan Singh government was accused. That public sector undertaking (PSU) and other private companies had misallocated coal deposits without the competitive bidding by the government. Now you might be thinking what is competitive bidding ! Right?

So competitive bidding is a process of issuing a public bid with the intent that companies will put together their best proposal and compete for a specific project.

This essentially means that any company, regardless of their company size, annual revenue or other similar factors, will be welcomed to the bidding process and will be given a fair chance as the rest of the competition. Moreover, competitive bidding creates a transparent environment that is open and fair.

And according to law, this process is compulsory for every government agency that issues a bid. Which was not followed in this case.

The amount of this allocation was Rs 1.86 lakh crore.

Read in detail


2. Commonwealth Games Scam (2010) :

Commonwealth games scam

In this case, half the amount 70,000 crore which was allocated for games was not spent.

The Central Vigilance Commission was also involved in this scam.

In this scam, purchase of equipment’s was manipulated. That is, the value of equipment purchased for games was shown increased. It was a huge loot.

Read in detail


3. 2G Spectrum Scam (2008) { Financial Frauds in India } :

2G spectrum scam Financial Frauds in India

There have been many scams in India among which 2G spectrum, is the largest. It is considered to be largest scam because when it took place, India’s economy was declining.

Keeping the rules and process of allocation of spectrum aside, former telecom minister A.Raja had done the scam. Apart from him, many other telecom companies were involved in this matter.

The amount involved in this scam is estimated to be Rs 1.76 lakh crore.

If you want to know about 2G scam in detail, read our article “2G Spectrum Scam“.


4. Satyam Scam (2009) { Financial Frauds in India } :

Satyam Scam Financial Frauds in India

It is one of the largest fraud in the history of corporate world.

Former director of the company, Ramalinga Raju presented the unrealistic accounts of the company (Satyam) for a long time. He kept all in darkness by exaggerating the gains of the company.

Due to this fraud, investors and shareholders suffered a huge loss. The amount involved in this financial fraud was near about 14,000 crore. For this fraud, Raju was prisoned/jailed and fined.

Though Tech Mahindra later overtaken the company. So it helped Raju to bring out again.

Read in detail


5. Wakf Board Land Scam (2008) :

Wakf Board land scam

The Wakf Board is a charitable institution established for the help of poor muslim community. On which Anwar Manippady, who was then president of Karnataka State Minority Commission, presented report which stated that 27,000 acres of land which was controlled by the Wakf Board, was allocated to the government workers at a very low price by the board and the leaders.

The value of land was about 2 lakh crores

Read in detail


6. Stamp Papers Scam (2002) { Financial Frauds in India }:

Stamp paper scam

This scandal (financial fraud) was carried out in secretive and dramatic way to make money in every denomination. The mastermind of this scam was Abdul Telgi, who had mastered the art of printing fake stamp papers. Which he used to sell it to banks and other institutions. Moreover he was supported by government departments.

His infiltration reach spread up to 12 states. And the amount of his scam was estimated to be around 20,000 crores.

Read in detail


7. Harshad Mehta & Ketan Parekh Stock Market Scandal (1992) :

Harshad and Ketan scam

Many people were affected by this scam. Investors involved in it can never forget this 4,000 crore Harshad Mehta scandal and the stock worth 1,000 crore Ketan Parekh’s scandal.

So this scam jointly damaged an amount of 5,000 crore.

Read in detail


8. Hawala Scam (1990-1991) { Financial Frauds in India } :

Hawala scam Financial Frauds in India

In Hawala case, the country’s leading leaders were accused of taking bribe through Hawala brokers.

Lal Krishna Adwani was also the name of those accused, who was then leader of opposition.

The amount involved in this scandal was estimated to be 100 crore.

Read in detail


9. Fodder Scam (1990){ Financial Frauds in India } :

Fodder scam Financial Frauds in India

It is one of the most discussed scandal of Bihar. The allegations of Fodder scam was felt by the former Bihar minister Lalu Prasad Yadav.

He had been taken into custody after the charges were proved. But he was later released on bail.

But recently he has been jailed again under BJP’s government.

Read in detail


10. Bofors scandal (1980s & 1990s) { Financial Frauds in India } :

Bofors scandal Financial Frauds in India

This fraud was a major corruption scandal. It was a scam related with weapon contract which which was for India’s defense and security.

In this scandal, former Prime minister Rajiv Gandhi, Induja from an NRI family and many more were accused to take bribe from Sweden’s company Bofors AB.This bribe was taken for Rs 1,437-crore deal between India and the Swedish arms manufacturer AB Bofors for the supply of 400 155mm Howitzer guns for the Indian Army.

Swedish State Radio on April 16, 1987 disclosed this fraud by presenting a report that claimed that the company had paid bribes to top Indian politicians and defence personnel.

After several investigations,V P Singh (newly elected prime minister then) -led government barred Bofors from signing any contract with India.

The amount involved in it was between 100 – 200 crore.

Read in detail


Conclusion :

parliament Financial Frauds in India

Even after India’s Independence, it is not untouched by dubious scandals and corruption. Most of the cases of financial frauds and corruption are still pending in our courts.

The accused of most of the scandals are big personalities and have political support too. Once the proceedings slow down, the possibility of escaping of such criminals increases. So if such things continue it will be hard for our country to develop.

This can be reinforced by making the judicial system more tough.


I hope I was able to explain you all well. So if you liked it, share it with your friends.

Thank you !!


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