Posted on: October 5, 2020 Posted by: Steve Johnson Comments: 0
biggest scam in India

It is a sheer misfortune for citizens of any country to witness a major banking scam of lakhs of crores of rupees. This is because the banking system does hold people’s money into their hands and if in case any biggest scam in India happens, not only banks, the people’s money also gets lost.

People deposit their hard earned money into banks but if a bank fails to provide security to their money and loses it to some Biggest Bank Scam in India scam then the entire nation has to pay its price.

List of 10 Biggest Bank Scam in India

Here in this article post, we will be going through all of those biggest bank scams in India that shook the country:

  • Nirav Modi Bank Scam
  • Vijay Mallya Bank Scam
  • Rotomac Pen Bank Scam
  • RP Infosystem Bank Scam
  • Jain Infra projects Bank Scam
  • 2011 Bank Executives Scam
  • 2016 10 Billion Bank scam
  • Andhra Bank 5 Billion Bank Scam
  • IL&FS Loan Default Case
  • Aircel Bank Loan Scam

#1 – Nirav Modi Bank Scam (INR 11,400 crore)

The Nirav Modi scam involves a huge sum of 11,400 crore rupees and has hit the banking system of PNB. This scam was recently uncovered and was based on a letter of undertaking by the PNB to the Gitanjali jewellery. Multiple celebrities also came forward to report to the media about non payment of endorsement fees to them which confirms the organizations motive to willfully default.

#2 – Vijay Mallya Bank Scam (INR 9000 crore)

Vijay Mallya’s Kingfisher airlines took around 9432 crore rupees from various banks. The loan was sanctioned till 2018 February until the airlines started to default. Mallya fled from India and settled in London. The vijay mallya bank scam case in India is a highly popular as well as biggest scam in India by a flamboyant person. 

#3 – Rotomac Pen Bank Scam (INR 3695 crore)

Vikram Kothari of Rotomac pen has taken a total loan of 3695 crore rupees from around seven banks in total. However, the company failed to service the loan and the company was declared Non Performing Asset.

#4 – RP Infosystem Bank Scam (INR 515.15 crore)

The private company RP Infosystem has fraudulently taken 515.15 crore rupees from a total of 9 banks by the means of forged documents. After the uncovering of such scam, CBI took the matter into its hand and booked its operators.

#5 –  Jain Infra projects Bank Scam (INR 2 billion)

The company with the name Jain Infra projects took a loan of around 2 billion rupees from the central bank of India. The company further denied the payments and the bank had to move the loan towards non performing assets.

#6 – 2011 Bank Executives Scam (INR 1.5 billion)

A whopping 1.5 billion rupees scam was found by CBI in a long search over years which showed that certain bank executives from IDBI, oriental bank of commerce and bank of Maharashtra created fake accounts and transferred loans in these accounts anonymously.

#7 – 2016 10 Billion Bank scam (INR 10 billion)

In the year 2016, a group of 4 people opened around 380 fake accounts in syndicate banks. This group further scammed the bank worth 10 billion rupees with the help of LoU’s, LIC policy and forged cheques. This scam shook the finance ministry also and this suggested the RBI to further investigate the matter.

#8 – Andhra Bank 5 Billion Bank Scam (INR 5 billion)

A former andhra bank director along with a Gujarat based pharma company scammed the bank with around 5 billion rupees. The enforcement directorate investigated the case soon after it revealed the whole matter.

#9 – IL&FS Loan Default Case (INR 816 crore)

One of the biggest scam in India by the powerful financial banking firm defaulted on its loans and soon after that the whole NPA case emerged. The IL&FS NPA rose to 816 crore rupees in 2018. The IL&FS bank scam case literally collapsed the shadow banking structure in India and created a liquidity crunch for the NBFCs. Almost all the non banking financial institutions had to restructure their loans and it further affected lakhs of borrowers across the country.

#10 – Aircel Bank Loan Scam (INR 850 crore)

The Aircel company promoter C Sivasankaran defrauded the IDBI bank to a tune of 322 crore loan amount and further 523 crores to the sivasankaran companies. The enforcement directorate attached the assets of the promoter however the company turned to be a non performing asset.

Conclusion of Biggest Back Scams in India

So, we have seen all the Biggest Scam in India which are highly popularised bank scams in India in recent times which has created a financial and liquidity chock in the economy.

All the cases are going through trials and some of them have been acquitted on repayment by the parties. Recently the kingfisher airlines owner Vijay Mallya offered a 100% loan repayment to the government and concerned banks as per his official tweets.

The reserve bank of India has issued some major guidelines in this aspect and has also asked the banks to be due diligent every time a multi Billion loan is sanctioned.

Stay tuned for more such informative top 10 blog posts.

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