08 August 2011

Top 10 business scams in India

The series of scams in India has degraded the integrity and dignity that the country has carried at the International front. The theoretical and bogus rules framed in the law books have not been enough to control this ever growing phenomenon of corruption here. However anti-corruption social activists-Anna Hazare and Arvind Kejriwal has instilled some hope in the hearts of millions in their fight against corruption. India's records of past scams will tear you apart and will diminish the hope of enlightenment created by these activists.

Here is the list of ten biggest scams that rocked India:

1. 2G scam:

None can beat this one, the infamous 2G scam, a fiddle of 1.76-lakh crore in the telecom industry of India. According to the CAG report, the former Telecom minister, A Raja evaded norms at every level as he distributed the dubious 2G license awards in 2008 at a throw-away price which were pegged at 2001 prices. The cases are still on in the Special CBI Court and seem to be unearthing more swindles.

2. Commonwealth Games Scam (CWG)

India was to proudly boast of having hosted the prestigious 2010 Commonwealth Games, but no one knew what lay ahead. The grand event even before it started downhearted many as it was already entwined with allegations of corruption.

The Comptroller and Auditor General (CAG) report indicted that out of Rs Rs 7000 crore intended to be spent on the Games, only half the amount was spent on Indian Sportspersons. Not only did the scam put Suresh Kalmadi, the sacked CWG Chairperson behind bars, but the recent report has also indicted Sheila Dikshit, Chief Minister, New Delhi of causing financial irregularities which led to huge losses to the government.

3. Telgi Scam

One of the most dramatic scams in India, Abdul Karim Telgi was the mastermind behind the whole idea of printing forged duplicate stamp papers that made its way into the banks and other institutions. Estimated at a massive cost of Rs 20000 crore, the fake stamp paper and stamp had infiltrated 12 states.

Reports also suggest that the kingpin had government backing which was held responsible for the selling and production of high security stamps.

4. Satyam Scam

The 7,000 crore by Satyam Computer Services scam is one of the biggest scams that the corporate world would ever want to forget.

Ramlinga Raju, ex-chairman of the com
pany was held on the charges of falsifying the accounts of the company for years together gain profit. The company was however overtaken by Tech Mahindra after it offered to buy a equity of 20 crore in Satyam.

5. Bofors Scam

The Bofors scandal is one of the biggest scam that cripple India. The Bofors scam was a major corruption scandal in India in the 1980s; when the then 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.

6. The Fodder Scam

The famous 1996 fodder scam also famously known as the Chara Ghotala scam involved a whopping amount of Rs 950 crore. The fabricated case involved taking reimbursement from the s
tate's treasury that included animal husbandry equipment, medicine and fodder for 'vast herds of fictitious livestock.'

7. The Hawala Scandal:

The $18 million scam came to light after the country's top political leaders were involved in receiving payments through hawala brokers.

The Jai
n brothers were the main accused in the whole scandals who were apprehended by the police in 1995.
8. IPL Scam

India who proudly boast over its frenzy created by IPL 20-20 cricket also carries the same of a scadle with IPL. Most of us are aware about the recent scam in IPL and embezzlement with r
espect to bidding for various franchisees. The scandal already claimed the portfolios of two big-wigs in the form of Shashi Tharoor and former IPL chief Lalit Modi.

9. Harshad Mehta & Ketan Parekh Stock Market Scam

Harshad Mehta & Ketan Parekh Stock Market Scam came as ashocker for many. There is no way that the investor community could forget the unfortun
ate 4000 crore Harshad Mehta scam and over 1000 crore Ketan Parekh scam which eroded the shareholders wealth in form of big market.

10. Citibank Fraud:

Citibank fraud was a major blow to Indian financial service industry. The real sulprit behind this scene is Mr. Shivraj Puri, who was working as the relationships manger with
Gurgaon branch of Citibank. He lured investors into a fake scheme with the help of forged circulars from Securities and Exchange Board of India (SEBI) with a hope to cash on very high interest rates. He came into light when the bank started receiving complaints from various clients about a scheme which was non-existent for the bank.