Corporate Scam is One of the Most Bad Things Happen in Corporate World.It Totally Destabilizes the Corporate Sector and Makes a Untrustful environment for investors in the corporate world.in India, there are lots of big corporate scams happened in the Past.
Nearly Over 250 Scam have Occurred in India Since 1947.And Approximately Rs.910,603,234,300,000 Which is Equal to 20.23 Trillion US Dollar has been LOST.
Indian Scam History Started from the 1940’s When in 1948 – Jeep scandal case. and in 1947 – INA treasure chest disappearance Scam Happened.Though this was not a corporate scam but Scam symptoms occurred itself in the 1940’s Era.
Today I am Going To Tell You The Most Biggest Corporate Scams Which Occurred in the India Till Date.it is possible many of them you already know about it.but,I am telling in Detail about India’s top 10 Biggest Corporate Scams.
1.Harshad Mehta Scam(1992).
What Was Harshad Mehta Scam?
It is one of the most Technical and done with very cleverness Scam in the year 1992.This scam takes all the advantage of loopholes in the Indian share market.Harshad Mehta was an intelligent Broker and he knew the exact loopholes with the Indian economy and the banking system.
in terms of Value, This Scam is About a sum of Rs 4000 crore.And that is in the 90s so you can imagine the value of such a sum today.
What Was The Impact of Harshad Mehta Scam?
The Immediate impact of Harshad Mehta scam was sharp fall in share prices and indices.
due to Harshad Mehta scam market loss 0.1 million crore loss in terms of market capitalization.
Then Government liberalization policy comes under various criticism.
SEBI Postponed sanctioning of Private sector Mutual Fund.
The Euro-Issues Planned by various companies were delayed due to Harshad Mehta scam.
2.C.R Bhansali Scam(1992-1996)
Chain Roop Bhansali Shortly known as C.R Bhansali scam occurred in 1995.The C.R Bhansali scam was of Rs.1200 Crore,Which is the huge amount of the time of 1995.
C.R Bhansali Collecting all money through his mutual fund company and transferring all amount to Non-Existing Company.
Bhansali had floated 133 companies to pull in funds and suck them out.
In three years, between March ’93 and ’96, the net worth of CRB Capital Markets plunged from Rs 11.65 crore to Rs 436.6 crore, or over 37 times. Alarm bells should have gone off about manipulation, especially as SEBI, which had given in an inspection report on the group’s merchant banking division and asset Management Company, came up with serious breaches.
3.Cobbler Scam (1995).
What Was Cobbler Scam?-Borrowing Loan From Banks in the Names of Fictitious/Non-Existence Cooperative Society of Shoe Makers.
The Cobbler Scam is one of the biggest million dollars scams in Indian History, is nicknamed The Great Cobbler Scam.this Great Cobbler Scam was that various businessman & politicians had siphoned around $600 million US dollars from a scheme that was running by the Government of India meant to benefit the poor cobblers of Mumbai. The money of the scheme was meant to provide low-interest loans and tax grants to the Mumbai’s poorest – cobblers who work 16-hours a day for less than $2. Not a single money reached these cobblers.
4.Ketan Parekh Scam(1999-2001)
Ketan Parekh is also Described as Pied Piper of Dalal Street.Ketan Parekh was Trainee of Harshad Mehta.Currently, Ketan Parekh debarred from trading in Indian share market till 2017.
His financing method was very simple.he bought a share when they traded at a low price and when the price was high enough he pledges to share with the bank as collateral for Funds.and he also borrowed from various companies like HCFL.The amount involved in the scam was Rs.1500 crore.
♦One of the biggest falls in Bombay stock exchange-700 points.
♦short selling was banned for 6 months.
♦options and future index derivatives were introduced.
5.Sanjay Agrawal Scam(2001)
Sanjay Agrawal was CEO Of Home Trade Company.He Launched Home Trade in the year 2000.He Spends nearly Rs.240 million on advertising and advertisements were done by big stars like Shahrukh khan,Sachin Tendulkar’s and Hrithik Roshan.
After Gaining Trust and Popularity he Swindled rs.600 crore from more than 25 cooperative banks.
The government securities (gilt) scam of 2001 was exposed when the Reserve Bank of India checked the accounts of some cooperative banks following unusual activities in the gilt market. Co-operative banks and brokers acted in collusion in a bid to make easy money at the cost of the hard earned savings of millions of Indians.
In this case, even the Public Provident Fund (PPF) was affected. A sum of about Rs 92 crore (Rs 920 million) was missing from the Seamen’s Provident Fund. Sanjay Agarwal, Ketan Sheth (a broker), Nandkishore Trivedi and Buchan Rai (a Hong Kong-based Non-Resident Indian) were behind the Home Trade scam.
6.Dinesh Dalmia Scam(2001)
Scam Industry-Information Technology.
Amount Involved in Scam-595 crores.
About:-Trading in Share Which is not listed in Stock Exchanges.
Dinesh Dalmia was a promoter and managing director of DSQ Software limited.Dinesh Dalmia was involved of criminal breach of trust, cheating, and fraud is claimed to have induced National Securities Depository Limited (NSDL) to dematerialise and credit 130 lakh equity shares of the software company as fully paid shares.
The shares were transferred allegedly by Mr. Dalmia to his front companies and entities without payment of sale considerations.
7.Satyam Scam (2009)
You already know a lot of things about the world famous Satyam Scam Which Took Palace in the year 2009.it is regarded as “Debacle of Indian Financial System”.This scam was clear cut example of how an investor can lose is money by simply misstating the Balance Sheet of the company.
Protagonist – B Ramalinga Raju & others
Amount – Rs. 8000 Cr
about –Satyam was one of the biggest accounting scandals where protagonist Ramalinga Raju Accepts that he Cooked up Accounts of Satyam Computers and inflated Satyam computers bank balances and Accounting Entries.He and his family members have also been accused of money laundering through hundreds of companies.
8. Speak Asia Scam (2011)
Protagonists: Harinder Kaur, Manoj Kumar Sharma, Tarak Bajpai & others.
Amount – Rs. 2000 + Cr.
about? –Speak Asia Scam was Scam about Business Survey Firm and Guaranteeing it’s an investor to Quadruple their income in just 1 year.
A criminal case was registered against the Speak Asia firm in 2011, some accounts frozen and it’s business were shut down.
9. – Saradha Chit Fund Scam(2013)
Protagonist – Sudipta Sen
Amount – Rs.4000 crore.
about–it’s about fake collective investment scheme.and it is one of the biggest Ponzi schemes.
shraddha scam also enjoys big political patronage.
The chit fund ultimately collapsed leading to defaults after a crackdown by SEBI and the Reserve Bank of India. The default, apart from leaving small depositors high and dry, also led to 10 media terminals owned by Saradha being forced to wind up, leaving 1000 journalists jobless.
10.PACL Scheme Scam.(2015)
About-Lures near 55 million investors by the technique of raising money against bogus and allotment letters.
Money Involved-Near Rs.47000 crore.
The matter involves the alleged collection of about 450 billion rupees ($6.8 billion) from roughly 55 million investors across the country.
2.How to Register Company in National Stock Exchange (NSE)
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