There have been many such scams in India, which people had never even thought about. At the same time, these scams were so big that many people were also harmed by them. Even the Government of India suffered crores. After these scams, some criminals were caught, but many escaped. Let us tell you today about 5 such big scamsters of India, whose tricks have baffled people.
If ever there is talk of any scam related to stock market, then Harshad Mehta’s name definitely comes up. Harshad Mehta’s scam is called Mahaghotala, which was exposed in 1992. According to the estimates of the Reserve Bank, it was about Rs 4025 crore. That is, if you look at it only according to inflation, then in today’s time its value is about 30 thousand crores.
How did the scam happen?In the 80-90s, Harshad Mehta was called the Amitabh Bachchan of the stock market. Seeing his style and his expensive vehicles, everyone wanted to be Harshad Mehta. Harshad Mehta made some of the shortcomings of the stock market his weapon and printed a lot of notes from the stock market. He raised the share of ACC from Rs 200 to Rs 3000. He used to operate shares in the stock market. Putting a lot of money in a few selected stocks would have taken him to the height of the sky. Seeing the rise in the stock, people also invest a lot of money in it. But when the price got too high, he would leave with a profit. People were surprised that where did he get so much money from. Actually, he used to take money from banks on the basis of fake BR i.e. bank receipt and put it in the stock market. By the time it was time to return the money, he would have taken the money from another bank and paid the money back. Similarly, on the basis of wrong methods and political connections, he started investing a lot of money in the stock market by taking a lot of money from all the public sector banks. When the matter opened in 1992, the stock market crashed and a lot of retail investors’ money was lost. Sucheta Dalal exposed this scam.
2- Ketan Parekh
Ketan Parekh used to be Harshad Mehta’s trainee. As the Guru was, so did the disciple. Ketan Parekh also scammed the stock market like Harshad Mehta. Like Harshad Mehta, he also unfairly increased the prices of some shares. He had 10 favorite stocks which he operated. These stocks were also called K-10 stocks at that time. Ketan Parekh had done a scam of about 800 crores.
How did the scam happen?Just as Harshad Mehta used the bank to do the scam, Ketan Parekh also took money from the bank and put it in the stock market. Harshad Mehda used to use fake bank receipts while Ketan Parekh did the scam through fake pay orders. Pay order is an instrument like DD, which had to be deposited in the bank before making it. Ketan Parekh made fake pay orders in collusion with the bank and on the basis of those pay orders, took money from other banks and placed them in the stock market. He used to rapidly increase the price of some shares and sell them when the prices were high enough. While Harshad Mehta wooed retail investors, Ketan Parekh wooed institutional investors as he had a lot of money to invest. When the share price went up, retail investors were automatically drawn to that stock. Sucheta Dalal had also exposed this scam.
3- Nirav Modi: PNB scam
There was news of a big scam in Punjab National Bank in 2018. The main accused in this scam was Nirav Modi, who had fled abroad along with his family a few days before the scam came to light by defrauding the bank to the tune of Rs 11,500 crore. After some time it came to know that Nirav Modi is hiding in Britain. Since then the trial against Nirav Modi was going on in London itself and efforts are being made to bring him back to India.
How did the scam happen?The letter of undertaking ie LoU is involved in the root of this whole matter. It’s a kind of guarantee On the basis of which other banks provide money to the account holder. Now if the account holder defaults, it is the responsibility of the bank providing the LoU to pay the dues to the bank concerned. Gokulnath Shetty, a deputy manager of PNB, allegedly misused the SWIFT messaging system. Banks authenticate the guarantee given through LOUs for foreign transactions through this system. They were given forex credit by foreign branches of some Indian banks on the basis of authentication. Nirav Modi went to a PNB branch in 2011 for a line of credit to import uncut diamonds. After that fake LoUs were issued with some employees and cheated the bank management. On the basis of these fake LoUs, foreign branches of Indian banks gave loans to PNB. When the fake LoUs started maturing, those employees of PNB used the money of other banks for 7 years. To recycle the loan. In January 2018, when Nirav Modi again tried to do the same type of fraud with PNB, the new officials caught the mistake and gradually the whole scam came out. In the month of January, the period of the earlier LOUs expired and the foreign branches of Indian banks did not get the loan amount back, then the veil came to the fore. Then he contacted PNB, which told that he was given the guarantee through fraud. After that PNB suspended many of its employees and action was initiated against many people. Who told that they were given the guarantee through fraud. After that PNB suspended many of its employees and action was initiated against many people. Who told that they were given the guarantee through fraud. After that PNB suspended many of its employees and action was initiated against many people. Who told that they were given the guarantee through fraud. After that PNB suspended many of its employees and action was initiated against many people. Who told that they were given the guarantee through fraud. After that PNB suspended many of its employees and action was initiated against many people.
4- Vijay Mallya’s scam
Vijay Mallya, who is called the King of Good Times, had defrauded many banks including State Bank of India to a total of more than 9000 crores. In this, SBI gave the maximum loan of 1600 crores. It is followed by PNB (800 crores), IDBI (650 crores) and Bank of Baroda. Vijay Mallya was always a colorful person, who liked parties, alcohol all this. Well, as long as everything was fine, no one had any problem, but now this king of good times has become the king of bad times by doing crores of fraud.
How did the scam happen- Vijay Mallya started Kingfisher airline in 2005. In the quest to make Kingfisher big, Vijay Mallya took over the country’s first low cost aviation company Air Deccan in 2007 and this proved to be the biggest mistake of his life. Within 5 years, Mallya’s Kingfisher Airlines was shut down and the entire business was almost over. The situation went from bad to worse. To pay off one debt took another loan. Gradually, the situation became so bad that Vijay Mallya was buried under the burden of debt and fled the country. In this scam, questions are also being raised on the banks that after thinking what they gave loans to Mallya. It is also being said that some big government officials may also have a hand in this, on whose behest a bank like State Bank of India gave a lot of loan to Mallya.
5- Raju Ramalinga
Raju was born in a farmer family. Before starting Satyam Computer Services, Raju tried his luck in hotels, spinning mills and real estate, but things didn’t work out. Raju did his B.Com from Loyal College, Vijayawada and MBA from Ohio University, USA. Raju had earlier started the Spinning Mill, which was named Shree Satyam. Later this company became a technology company and Raju started the business of weaving lies. 7 January 2009, when the shares of software company Satyam fell 78 per cent in one day. The founder and chairman of this company was Ramalinga Raju, who made a scam of Rs 7800 crore in his own company. Due to this, about 14 thousand crore rupees of investors were sunk.
How did the scam happen?Raju started Satyam Company in 1987. At the same time, companies like Infosys, TCS, Wipro were also growing rapidly, due to which Raju was afraid of falling behind. Fearing to lag behind even a single step, Raju started the magic of accounting and kept exaggerating the profits of his company. It would not be wrong to say that Raju started telling One Two Ka Four. The company claimed that there is a bank balance of Rs 5000 crore in its bank accounts, but who checks the accounts by going to every bank, then everyone agreed to Raju, but the reality was that Raju did not have any money. . When Raju’s dark exploits started to get exposed, he started taking erroneous decisions, which was opposed by the shareholders of the company. At first Raju proposed to merge two of his own companies, Metas Infra and Metas Real Estate, with Satyam. Due to which the price of the company’s ADR came down by 51 percent. When things got out of hand, Raju confessed in front of the world that he had shown the company a false advantage. Far from the bank balance, he does not even have money to run the business. After this, Raju was sentenced to 7 years imprisonment in 2015 and fined Rs 5 crore.