Scams in India

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SCAMS IN INDIA Done by Politicians,Govt . officials,corporates


QUOTE "India needs to deal with the malice of corruption and improve governance in Asia's third-largest economy." Prime Minister Manmohan Singh said on March 18, 2011.


INTRODUCTION Political and bureaucratic corruption in India are major concerns. A 2005 study conducted by Transparency International in India found that more than 15% of Indians had first-hand experience of paying bribes or influence peddling to successfully complete jobs in public office. In 2010 India was ranked 87 th out of 178 th countries in Transparency International's Corruption Perceptions Index.


CONTD. From 1948 through 2008 India lost a total of $213 billion in illicit financial flows (or illegal capital flight). These illicit financial flows were generally the product of: corruption, bribery and kickbacks, criminal activities, and efforts to shelter wealth from a country's tax authorities. (51) According to the data provided by the Swiss Banking Association Report (2006), India has more black money than the rest of the world combined.


SINCE INDPENDENCE Jeep Purchase(1948) Cycle Imports(1951) BHU funds(1956) Mundhra Scandal(1957) Teja loans scam(1960) Kairon scam(1963) Patnaik’s own goal(1965) Maruti Scandal(1974)


CONTD Kuo oil deal(1976) Antulay Trust(1981) HDW commissions(1987) Bofors pay-off(1987) St Kitts forgery(1989) Air bus Scandal(1990) Securities Scam(1992)

AFTER 1991:

AFTER 1991 1992 — Harshad Mehta Scam was worth Rs 5000 Crores . 1994 — Sugar Import Scam was worth Rs 650 Crores . 1995 — Preferential Allotment Scam was worth Rs 5000 Crores . 1995 — Yugoslav Dinar scam was worth Rs 400 Crores . 1995 — Meghalay Forest Scam was worth Rs 300Crores. 1996 — Fertilisers Import Scam was worth 1300 Crores . 1997 — Sukhram telecom Scam was worth Rs 400 Crores . 1997 — Lavalin Power project Scam was worth Rs 374 Crores . 1997 — Bihar Land Scam was worth 1200 Crores 1997 — C R Bhansali stock scam was worth Rs 1200 Crores . 1998 — Teak Plantation Scam was worth rs 8000 Crores . 2001 — UTI Scam was Rs 4800 Crores .


CONTD 2001 — Ketan Parekh security scam was worth Rs 1250 Crores . 2002 — Sanjay Agarwal Home Trade Scam was worth Rs 600 Crores . 2003 — Telgi Stamp paper Scam was worth Rs 172 Crores . 2005 — IPO Demat Scam was worth Rs 146 Crores . 2005 — Bihar food relief Scam was worth 17 crores . 2005 — Scorpene submarine Scam was worth Rs 18,978 crores . 2006 — Punjab’s city centre project scam 2006 — Taj Corridor Scam was worth 175 Crores . 2008 — Pune Billionaire Hasan Ali tax default scam was worth Rs 50,000 crores . 2008 – Satyam Scam was worth Rs14000Crores.


CONTD 2008 — Army Ration Pilferage Scam was worth Rs 5000 crores . 2008 — 2G Spectrum Scam was worth Rs 1.76 lakh Crores . 2008 — State Bank of Saurashtra Scam was worth Rs 95 crores . 2008 — Illegal money in Swiss Bank is worth Rs 71,00,000 Crores . 2009 — Jharkhand Medical equipment scam was worth Rs 130 Crores . 2009 — Rice export scam was worth Rs 2500 crores . 2009 — Orissa Mine scam was worth Rs 7000 crores . 2009 — Madhu Koda scam was worth Rs 4000 crores . 2010 – IPL fraud involving swine called Lalit Modi option 2010 — Commonwealth Games loot is worth 8000 crores

Jeep Purchase(1948):

Jeep Purchase(1948) – Free India's corruption graph begins. V. K. Krishna Menon , then the Indian high commissioner to Britain, bypassed protocol to sign a deal worth Rs 80 lakh with a foreign firm for the purchase of army jeeps. The case was closed in 1955 and soon after Menon joined the Nehru cabinet.

Mundhra Scandal(1957) :

Mundhra Scandal(1957) It was the media that first hinted there might be a scam involving the sale of shares to LIC, Feroz Gandhi sources the confidential correspondence between the then Finance Minister T.T. Krishnamachari and his principal finance secretary, and raised a question in Parliament on the sale of 'fraudulent' shares to LIC by a Calcutta-based Marwari businessman named Haridas Mundhra . The then Prime Minister, Jawaharlal Nehru, set up a one-man commission headed by Justice M.C.Chagla to investigate the matter when it becomes evident that there was a prima facie case. Chagla concluded that Mundhra had sold fictitious shares to LIC, thereby defrauding the insurance behemoth to the tune of Rs. 1.25 crore . Mundhra was sentenced to 22 years in prison. The scam also forced the resignation of T.T.Krishnamachari .

Bofors scam:

Bofors scam Bofors Scam The Bofors scandal is known as the hallmark of Indian corruption. The Bofors scam was a major corruption scandal in India in the 1980s; PM Rajiv Gandhi and several others including a powerful NRI family named the Hindujas , were accused of receiving kickbacks from Bofors AB for winning a bid to supply India’s 155 mm field howitzer. The Swedish State Radio had broadcast a startling report about an undercover operation carried out by Bofors , Sweden’s biggest arms manufacturer, whereby $16 million were allegedly paid to members of PM Rajiv Gandhi’s Congress. Most of all, the Bofors scam had a strong emotional appeal because it was a scam related to the defense services and India’s security interests. The name of the middleman associated with the scandal was Ottavio Quattrocchi , an Italian businessman who represented the petrochemicals firm Snamprogetti . Quattrocchi was reportedly close to the family of Prime Minister Rajiv Gandhi and emerged as a powerful broker in the 1980s between big businesses and the Indian government.

 Ottavio Quattrocchi:

Ottavio Quattrocchi A Delhi court discharged Quattrocchi from the case, as there was no credible evidence against him, on 4 March 2011

The Hawala scandal:

The Hawala scandal The Hawala Scandal The Hawala case to the tune of $18 million bribery scandal, which came in the open in 1996, involved payments allegedly received by country’s leading politicians through hawala brokers. From the list of those accused also included Lal Krishna Advani who was then the Leader of Opposition Thus, for the first time in Indian politics, it gave a feeling of open loot all around the public, involving all the major political players being accused of having accepted bribes and also alleged connections about payments being channelled to Hizbul Mujahideen militants in Kashmir.

Telgi Scam:

Telgi Scam Abdul Karim Telgi had mastered the art of forgery in printing duplicate stamp papers and sold them to banks and other institutions. The tentacles of the fake stamp and stamp paper case had penetrated 12 states . He began printing fake stamp paper. He appointed 300 people as agents who sold the fakes to bulk purchasers, including banks, FIs, insurance companies, and share-broking firms. His monthly profits have been estimated as being in the neighbourhood of Rs 202 crore (slightly more than US $40 million). The size of the scam was estimated to be more than 43,000 crore (US$9.55 billion). [

Satyam scam:

Satyam scam Satyam Scam The scam at Satyam Computer Services is something that will shatter the peace and tranquillity of Indian investors and shareholder community beyond repair. Satyam is the biggest fraud in the corporate history to the tune of Rs. 14000 crore . The company’s disgraced former chairman Ramalinga Raju kept everyone in the dark for a decade by fudging the books of accounts for several years and inflating revenues and profit figures of Satyam. Finally, the company was taken over by the Tech Mahindra which has done wonderfully well to revive the brand Satyam.

Ramalinga Raju:

Ramalinga Raju

CWG scam:

CWG scam The Commonwealth Games is surrounded by allegations of substantial amount of corruption. The Central Vigilance Commission, involved in probing the alleged corruption in various Commonwealth Games-related projects, has found discrepancies in tenders and alleged misappropriation amounting to about Rs 8,000 crore . The government then sacked Kalmadi and OC secretary-general Lalit Bhanot last year to enable the probe agencies to carry out a free and fair investigation.

Suresh kalmadi ( Sir u made Lakhs):

Suresh kalmadi ( Sir u made Lakhs ) 26 April, 2011 CBI arrest Kalmadi for buying TSR (timing scoring and result) equipment from a Swiss firm, Swiss Timing, at inflated price of Rs.141 crore for the event.

Adarsh scam:

Adarsh scam The Adarsh Housing Society is a cooperative society in the city of Mumbai  in India. It was reserved for the war widows and veterans of the Kargil War. In 2010, the Indian media brought to public the violations of rules at various phases of construction in the Adarsh Society. Questions were raised on the manner in which apartments in the building were allocated to bureaucrats, politicians and army personnel who had nothing to do with Kargil War  and the way in which clearances were obtained for the construction of the building of the Adarsh Society.


HASSAN ALI KHAN scandal He owes rs 50,000 in taxes. He has $8 billion in a swiss bank.


CONCLUSION LOKPAL BILL The Jan Lokpal Bill (Citizen's ombudsman Bill) is a draft anti-corruption bill drawn up by prominent civil society activists seeking the appointment of a Jan Lokpal , An independent body  that would investigate corruption cases, complete the investigation within a year and envisages trial in the case getting over in the next one year.

Slide 36:

To see Global financial integrity report log on to “”

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