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Biggest Banking Scams In India

IamCheated.com Research Team | April 12, 2018  6:19:pm

According to a study by IIM-Banglore, public sector banks in India have lost at least Rs 22,743 crores due to fraudulent banking activities between 2012 and 2016. During the first nine months of the financial year 2017, nearly 455 cases of fraudulent banking transactions were identified at ICICI Bank, 429 at State Bank of India, 244 at Standard Chartered Bank and 237 at HDFC Bank. 

It was also found that nearly 60 employees from the State Bank of India (SBI), 49 from HDFC Bank and 35 from Axis bank were involved in conducting fraudulent banking transactions. Punjab National Bank has also suspended some employees due to a recent bank fraud of Rs 11,400 crores.

These are some of the biggest banking scams in India

The year 2011

In the year 2011, nearly 10,000 fake accounts were created by executives of certain banks like IDBI, Oriental Bank of Commerce and Bank of Maharashtra. After creating the fictitious bank accounts, Rs 1,500 crores worth of loans were transferred.

The year 2014

  • In the year 2014, FIRs were filed against many public sector banks associated with fixed deposit frauds amounting to Rs 700 crores.

  • In the same year, Kolkata-based industrialist Bipin Vohra, cheated Central bank of India, by using forged documents to avail a loan worth Rs 14 Billion.

  • Bribe for loan scam was identified in the same year. This scam involved ex-chairman and MD of Syndicate Bank, SK Jain. He was involved in sanctioning of loans worth Rs 8,000 Crores.

  • Apart from all this, Vijay Mallya was declared a willful defaulter by Union Bank of India, SBI and PNB.

The year 2015

In the year 2015, employees of Jain Infra projects cheated Central Bank Of India, to the tune of Rs 2 Billion. Besides this, employees of many banks were involved in a foreign exchange scam.

The year 2016

In the year 2016, four people opened 380 accounts in Syndicate Bank and cheated the bank to the tune of Rs 10 billion using fake LOUs, cheques and LIC policies.

The year 2017

  • In the year 2017, Vijay Mallya's loan dues increase to Rs 9,500 crores to be paid to IDBI and other banks. CBI had prepared the charge sheet but Mallya had left India by then.

  • In the same year, CBI had booked 6 cases against the group and the companies under Winsome Diamonds. In this case, letters of Undertaking were issued by Indian Banks to Jatin Mehta's Winsome Diamonds. The group failed to repay its debts in mid-2013 and banks declared the group as a willful defaulter. 

  • A promoter of Shree Ganesh Jewellery House, Nilesh Parekh, was arrested by CBI. He had caused a loss of Rs 22.23 billion to at least 20 banks. Parekh cheated banks by diverting loan money via shell companies. 

The year 2018

In February 2018, Punjab National Bank disclosed a Rs 11,450 crore fraud by Diamantaire Nirav Modi. Modi was helped by a former PNB employee, Gokulnath Shetty. Now, Nirav Modi and his partners have left the country.

You may also read: How Clever Fraudsters Fooled PNB Of Rs 11,000 Crores?

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