According to Transparency International, India is the world’s 87th most corrupt nation with an integrity score of 3.3. Predictably, corruption in India mostly involves politicians; and in some cases, India’s ruling family. As far back in 1964, the Santhanam Committee noted: “There is widespread impression that failure of integrity is not uncommon among ministers? Those who have held office during the last 16 years have enriched themselves illegitimately?” A booming stock market and freemarket opportunities in 1991 brought big bulls, politicians and businessmen together. Politics feeds corruption; in the Lok Sabha elections 2009, candidates spent an estimated Rs 10,000 crore.

TELGI SCAM:

1991 l Rs 43,000 crore

Counterfeiter Abdul Karim Telgi printed fake stamp paper and appointed 300 agents to sell them in bulk to banks, foreign investors, insurance companies and stock market players, earning around Rs 200 crore a month. The swindle exceeded Rs 43,000 crore and covered 12 states. The Telgi scandal had political implications; a narco test allegedly revealed the involvement of Maharashtra political leaders like Sharad Pawar and Chhagan Bhujbal. On June 28, 2007, Telgi was awarded 13 years of rigorous imprisonment and fined Rs 202 crore. Forty-two of Telgi’s accomplices were also sentenced to six years rigorous imprisonment.

Satyam Scam

2009 l Rs 24,000 crore

The Satyam Computer swindle is reportedly the largest corporate scam in India, exceeding Rs 24,000 crore. Company chairman Ramalinga Raju quit after confessing to the board and SEBI that he cooked the books. In Satyams balance sheet of 2008, Rs 5,040 crore as cash assets were inflated to Rs 5,361 crore, earning a non-existent interest of Rs 376 crore. Company debt was stated Rs 490 crore as against Rs 2,651 crore. Based on a high market valuation, Raju and his confederates offloaded their shares, making crores of rupees to buy land using the money to set up 374 infrastructure firms and eight investment companies.

Bofors Scam

1987 l Rs 64 crore

The highly politically motivated Bofors scam ultimately cost former prime minister Rajiv Gandhi popular support when he and others like the Hinduja tycoons were accused of taking bribes of Rs 64 crore in a defence deal to purchase 155-mm Bofors guns from Sweden. The deal, midwifed by arms dealer Win Chadha, brought Italian businessman Ottavio Quattrocchi-allegedly close to the Gandhis-and his company Snamprogetti into the limelight. Ultimately, Rajiv was given a clean chit by the Government post mortem.

Fodder Scam

1996 l Rs 950 crore

Over two decades, Bihar ministers and officials colluded to bill the state treasury over Rs 950 crore to provide feed, medicines and animal husbandry equipment for “vast herds of fictitious livestock”. The swindle allegedly involved chief ministers Jagannath Mishra and Lalu Prasad Yadav, with the latter being sent to jail.

Hawala Scandal

1996 l Rs 810 crore

The hawala swindle involved leading Indian politicians allegedly receiving kickbacks totalling $18 million through hawala brokers, the Jain brothers. The politicians belonged to all the major parties-L.K. Advani, V.C. Shukla, P. Shiv Shankar and Sharad Yadav among others. Advani resigned and returned to Parliament when he was fully absolved. The CBI alleged that part of the hawala money was used to finance Hizbul Mujahideen operations. The evidence was found inconclusive by the apex court.

IPO Scam

2006 l Rs 61 crore

Benami and fake demat accounts were used by financiers and stock market players led by Roopalben Panchal of IndiaBulls to illegally get reserved IPO shares worth Rs 61 crore. Small investors became victims when these shares were sold on the first day of listing itself, making a huge profit from the difference in issue price and listing price.

Securities Scam

1992 l Rs 4,000 crore

In April 1992, a shortfall in the government securities held by the SBI caused panic on Dalal Street. Investigations revealed that Rs 4,000 crore was swindled in a scam involving top officers of many nationalised and foreign banks, as well as stockbrokers, bureaucrats and politicians. Stock markets shut down in panic and share prices plummeted by over 40 per cent, causing a loss of market value to the tune of Rs 100,000 crore. Big Bull Harshad Mehta used ready forward (RF) deals between banks to secure short-term loans against government securities, earning commissions worth crores of rupees. He bribed officials of the Bank of Karad and the Metropolitan Cooperative Bank to issue fake bank receipts (BRs) which were then sold to other banks who lent Mehta money, erroneously assuming that they were lending against government securities. Stocks soared, with crores flooding the market which were later sold for a profit when the BR was retired. Once the scam broke, many banks were left holding worthless BRs.

UTI Scam

2000 l Rs 32 crore

Former United Trust of India (UTI) chairman P.S. Subramanyam and two executive directors M.M. Kapur and S.K. Basu connived with stockbroker Rakesh Mehta to buy 40,000 shares of Cyberspace Infosys for around Rs 3.33 crore, when there were no buyers for the scrip. According to the CBI, “the conspiracy” resulted in a loss of Rs 32 crore. The promoter of Cyberspace, Arvind Johari, allegedly paid the UTI officials Rs 50 lakh to promote its shares.

Mutual fund Scam

2001 l Rs 1,350 crore

After the UTI was bailed out by the government with Rs 4,800 crore of taxpayers’ money, it purchased huge bulks of manipulated shares from ‘Pentafour bull’ Ketan Parekh. The 2001 stock market crash prompted the sebi to inspect the books of several brokers, including Parekh. The CBI arrested him on charges of defrauding the Bank of India of about $30 million. As hundreds went bankrupt and eight investors committed suicide, the markets lost Rs 1,15,000 crore to the scam.

Bhansali Scam

1995 l Rs 1,200 crore

Businessman Chain Roop Bhansali invited investments in his financial outfits CRB Capital Markets, CRB Mutual Fund and CRB Share Custodial Services between 1992 and 1996, later transferring the money to fictitious companies. CRB Capital Markets raised Rs 176 crore, CRB Mutual Funds Rs 230 crore and fixed deposits earned him Rs 180 crore. He also raised around Rs 900 crore from markets. Bhansali would pay the interest on investments by borrowing from the market, but he went bust in the 1995 stock market crash and was busted in turn.

Madhu Koda Scam

2009 l Rs 4,000 crore

On October 10, 2009, the Enforcement Directorate (ED) charged former Jharkhand chief minister Madhu Koda with money laundering to the tune of over Rs 4,000 crore. In 2005, when he became chief minister at 35, his declared assets totalled Rs 12 lakh. The ED raided his hotels, property and three companies in Mumbai and Kolkata, and also discovered he owned assets in Thailand,Indonesia, Singapore and Dubai. He had allegedly also bought a coal mine in Liberia for Rs 8.5 crore. The one-time labourer has 1,800 bank accounts all over the globe. Investigators said that most of Koda’s assets were held in the name of his main associates: Vinod Sinha of Chaibasa (Jharkhand) and Sanjay Chaudhary of Jamshedpur.

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