THE BIG SCAMS IN INDIA

S. N. Lavanya (121202064)

 Many

scams in the past decade.

First

major scam was the Bofors Scam during the 1980s and 90s.
Swedish Co. paid Rs. 640 mil. As bribes to the top politicians and defence personnel.

The

Rajiv

Gandhi was implicated and Congress lost the elections.

HAWALA SCAM
Payments

being made to Hizbul Mujahideen in Kashmir through Hawala Brokers SK Jain, NK Jain and BR Jain People involved: L. K. Advani, V. C. Shukla, P. Shiv Shankar, Sharad Yadav, Balram Jakhar, and Madan Lal Khurana Vineet Narain broke the news

 Amount

Involved

Rs. 810 Crores in 1996

The Brokers maintained a diary with details of who got how much. Advani was getting around Rs. 70 Lakhs and an Independent ministers named Arif Mohd. Khan were getting Rs.7.5 Crores!

COALGATE SCAM
Rule

from 1993 is to auction the mining contract to highest bidder. 194 coal blocks not auctioned between 2004-2011 Government of India was the accused by CAG mainly PM Manmohan Singh (formerly held coal portfolio) Estimated Loss: Rs. 1.86 Lakh Crores

 Jindal

Steel and Power, Essar Power, Hindalco, Tata Steel and Tata Power got the coal mining contracts at windfall prices PSUs were excluded out of the equation or else loss would be Rs. 10 Lakh Crores.

The

2G SCAM
The

2G spectrum was supposed to be auctioned in 2008. Was not. People Involved: A. Raja (preponed the deadline dates for receiving applications), M. K. Kanimozhi. Estimated Loss: Rs. 1.76 Lakh Crores

TELGHI SCAM
Sold

fake stamp papers to the Indian Government, Insurance companies and banks. Cases filed between 1992 and 2002 Operated through 300 agents distributing the fake stamp paper. People involved: Abdul Karim Telghi and Sharad Pawar Estimated Loss: Rs. 20,000 Crores

CWG SCAM
2010. Inflated costs of everything used. Water dispenser rent was Rs. 7000/day and A/C rent was Rs. 11,000/day per piece. People involved: Suresh Kalmadi, Sheila Dixit Estimated Loss: Rs. 70,000 Crores
Large

scale misappropriation of money in

SATYAM SCAM (2009)

Showed

nonexistent assets and employees Tried to replace fake assets with real ones and got caught. People involved: Satyam CEO B. Ramalinga Raju Estimated Loss: Rs. 8,000 Crores

HARSHAD MEHTA STOCK SCAM

Used

the banking system to artificially raise stock prices. Used Ready Forward (RF) deals. Got fake Bank Receipts (BRs) from Bank of Karad and Metropolitan Co-op Bank. He used these fake BRs and got money from the banks. Bought stocks to raise them.

 These

stocks were then sold at a huge profit and all the bank liabilities were cleared. The banking industry was swindled by Rs. 4000 Crores! Came to light in 1992.

ADARSH HOUSING SOCIETY SCAM

Supposed

to build 6-storey flats for Kargil War heroes and widows. The politicians overtook it and turned it into 31-storey tower. Flats worth Rs. 6 8.5 Crores were sold for 60-85 Lakhs. People Involved: Ashok Chavan, Vilasrao Deshmukh, Sushil Kumar Shinde and Narayan Rane

NSEL SCAM
National

Spot Exchange Ltd. couldnt pay the investors their money after 31st July 2013. T+2 settlements were honoured, but the exchange didnt honour the T+25 settlements. The exchange didnt have neither the money nor the commodities.

 People

Shah Amount Involved: Rs. 5600 Crores

involved: Jignesh Shah, Anjani

FODDER SCAM
Small

scale embezzlement of cash to be used for expenses snowballed into a large scale scam This came slowly into light when the Bihar govt delayed submission of expenses report to the CAG Persons involved: Lalu Prasad Yadav and Jagannath Mishra

 Amount

involved was Rs. 950 Crores over a period of many years. Scam came to light fully in 1992. Lalu Prasad Yadav was recently sent to jail but released on bail.

 TOTAL

ESTIMATED LOSS Rs. 47,13,60,00,00,000

TRANSPARENCY
Transparency

International measures countries by the level of corruption Corruption Score is 36/100 (0 is worst and 100 is very clean) 62% reported to paying a bribe in 2013

SOURCE: TRANSPARENCY.ORG

Least corrupt countries

Denmark 2. New Zealand 3. Finland 4. Sweden 5. Norway India is ranked 97 out of 177 countries
1.
SOURCE: Transparency.org/cpi2013/results