There have been several scams in India over the years, ranging from financial frauds to corruption scandals. Here are some of the biggest scams that have occurred in India:
2G Spectrum Scam (2008): estimated to be worth around Rs. 1.76 lakh crore ($25 billion).
The 2G spectrum scam, also known as the 2G scam, was a major corruption scandal in India that came to light in 2008. The scam involved the underpricing and allocation of valuable 2G spectrum licenses to companies that were ineligible for them.
The estimated value of the scam was around Rs. 1.76 lakh crore ($25 billion) in lost revenue to the Indian government. The scam led to a massive public outcry and triggered investigations by multiple agencies, including the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED).
The investigations revealed that the spectrum licenses were sold at a fraction of their actual value to companies that were not qualified to receive them. The scam involved collusion between government officials, politicians, and business leaders.
Several high-profile individuals were implicated in the scam, including the then-telecom minister, A Raja, and several top executives of telecom companies. The investigations resulted in the cancellation of 122 telecom licenses and the arrest of several individuals.
The 2G scam is considered to be one of the largest corruption scandals in Indian history, and it led to a major political and social upheaval in the country. It also resulted in a significant loss of public trust in the government and the political establishment.
Coal Allocation Scam (2012): estimated to be worth around Rs. 1.86 lakh crore ($26 billion).
The Coal Allocation Scam, also known as the CoalGate Scandal, was a major corruption scandal that occurred in India in 2012. It involved the allocation of coal blocks by the government of India to private companies without a transparent bidding process. The scam was estimated to be worth around Rs. 1.86 lakh crore ($26 billion), making it one of the largest corruption scandals in Indian history. This was one of the biggest scams in India.
The Comptroller and Auditor General of India (CAG) released a report in August 2012, which alleged that the government had allocated coal blocks to private companies at below-market prices. The report stated that this had caused a loss of Rs. 1.86 lakh crore ($26 billion) to the exchequer.
The scandal led to widespread protests and criticism of the government. The opposition parties demanded the resignation of the then Prime Minister, Manmohan Singh, who was also the Minister of Coal at the time of the allocations. The Central Bureau of Investigation (CBI) launched an investigation into the scam and several high-profile individuals were arrested, including politicians and businesspeople.
In 2014, the Supreme Court of India cancelled all the coal block allocations made between 1993 and 2010, declaring them illegal and arbitrary. The court also directed the government to auction the cancelled coal blocks in a transparent manner. As a result, the government conducted two rounds of auctions in 2015 and 2016, and allocated the coal blocks to private companies through a competitive bidding process.
The Coal Allocation Scam highlighted the need for greater transparency in the allocation of natural resources in India. It also demonstrated the need for stronger anti-corruption laws and mechanisms to prevent such scams from occurring in the future.
Commonwealth Games Scam (2010): estimated to be worth around Rs. 70,000 crore ($10 billion).
The Commonwealth Games Scam of 2010, also known as the Delhi Games Scam, was a major corruption scandal that rocked India in the run-up to the 2010 Commonwealth Games, held in New Delhi. The scam was estimated to be worth around Rs. 70,000 crore ($10 billion), making it one of the largest corruption scandals in the country’s history.
The scam involved widespread allegations of financial irregularities, favoritism, and mismanagement in the preparation and execution of the Commonwealth Games. The government was accused of inflating prices for goods and services, awarding contracts to ineligible firms, and misusing public funds. There were also reports of substandard construction, poor living conditions for athletes and officials, and other irregularities.
The scam came to light in 2010, following an investigation by the Central Vigilance Commission (CVC), which is India’s top anti-corruption watchdog. The CVC found evidence of widespread corruption and mismanagement in the Commonwealth Games organizing committee and recommended a series of actions to be taken against those responsible.
Several high-ranking officials and politicians were implicated in the scam, including Suresh Kalmadi, the chairman of the organizing committee, and Sheila Dikshit, the chief minister of Delhi. Kalmadi was arrested and jailed in 2011, but was later released on bail. Dikshit, who died in 2019, denied any wrongdoing.
The fallout from the Commonwealth Games Scam was significant, with many people calling for greater transparency and accountability in government. The scandal also had a negative impact on India’s reputation, as it raised concerns about the country’s ability to host major international events.
Satyam Scam (2009): estimated to be worth around Rs. 14,000 crore ($2 billion).
The Satyam Scam, also known as India’s Enron, was a corporate scandal that took place in 2009. The scandal involved India’s fourth-largest IT services company, Satyam Computer Services, and its founder and chairman, Ramalinga Raju.
In January 2009, Raju publicly admitted to falsifying the company’s accounts and inflating profits over a period of several years. He claimed that the company’s balance sheet had been inflated by around Rs. 14,000 crore ($2 billion) through falsified invoices, fictitious assets, and nonexistent cash balances.
The revelation led to a huge loss of investor confidence, with the company’s shares plummeting and causing significant losses to shareholders. The Indian government took over the company and appointed a new board to manage its affairs. The case was later investigated by various agencies, including the Central Bureau of Investigation (CBI) and the Securities and Exchange Board of India (SEBI).
In 2015, Ramalinga Raju was found guilty of fraud and sentenced to seven years in prison, along with other senior executives of the company. The Satyam Scam was one of the largest corporate frauds in India’s history, and it had a significant impact on the country’s IT industry and corporate governance practices.
Vijay Mallya Scam (2016): estimated to be worth around Rs. 9,000 crore ($1.2 billion).
The Vijay Mallya scam refers to the financial scandal involving Indian businessman Vijay Mallya, who was accused of fraudulently obtaining loans worth Rs. 9,000 crore ($1.2 billion) from various Indian banks. The loans were obtained for his now-defunct Kingfisher Airlines, which was grounded in 2012 due to mounting debts.
Mallya was accused of diverting the loan funds for personal purposes, and failing to repay the loans, causing significant losses to the banks. He fled to the UK in March 2016, after the Indian government started legal proceedings against him to recover the outstanding loan amount.
In April 2017, the Indian government initiated extradition proceedings against Mallya, and in December 2018, a UK court ordered his extradition to India. However, Mallya has been fighting the extradition order, and as of March 2023, the matter is still pending.
The Vijay Mallya scam is one of the biggest financial frauds in India’s history, and has been a high-profile case due to Mallya’s status as a prominent businessman and politician.
Nirav Modi Scam (2018): estimated to be worth around Rs. 14,000 crore ($1.9 billion).
The Nirav Modi scam, also known as the Punjab National Bank scam, was a financial fraud that came to light in early 2018. Nirav Modi, a billionaire diamond merchant and jeweler, was accused of defrauding the Punjab National Bank (PNB) of around Rs. 14,000 crore (approximately $1.9 billion).
The fraud involved the issuance of fraudulent Letters of Undertaking (LoUs) by PNB officials to Nirav Modi’s companies, which enabled them to obtain loans from other banks overseas. The loans were allegedly used to fund Nirav Modi’s lavish lifestyle and his diamond business, and the fraud went undetected for several years.
The scam led to a major scandal in India and abroad, and Nirav Modi fled the country to avoid arrest. He was later arrested in London in 2019 and extradited to India in 2021 to face trial. Several other individuals, including PNB officials and Nirav Modi’s associates, have also been arrested in connection with the scam.
The Nirav Modi scam is considered to be one of the biggest financial frauds in India’s history, and it has raised concerns about the effectiveness of India’s banking system and regulatory framework. The case is still ongoing, and its full impact on the Indian economy and financial sector is yet to be determined.
Harshad Mehta Scam (1992): estimated to be worth around Rs. 5,000 crore ($700 million).
The Harshad Mehta scam, also known as the securities scam of 1992, was a major financial fraud that took place in India. Harshad Mehta, a stockbroker, exploited loopholes in the banking system to manipulate the stock market and make large profits.
Mehta used the process of “buying low and selling high” to manipulate the stock prices of certain companies. He took advantage of the banking system’s lax regulations on the use of bank receipts and used them to obtain large sums of money from banks. He then used this money to invest heavily in the stock market and drive up the prices of certain stocks.
At the peak of the scam, Mehta’s net worth was estimated to be around Rs. 5,000 crore (approximately $700 million at the time). However, the scam was eventually uncovered, and Mehta was arrested and charged with multiple offenses, including fraud and forgery.
The aftermath of the scam led to major changes in India’s financial regulations, including the establishment of the Securities and Exchange Board of India (SEBI) to oversee the country’s securities market. The scam also highlighted the need for better banking regulations and transparency in the financial sector.
Fodder Scam (1996): estimated to be worth around Rs. 950 crore ($130 million).
The Fodder Scam, also known as the Bihar Fodder Scam, was a corruption scandal that took place in the Indian state of Bihar during the 1990s. The scam involved the embezzlement of government funds meant for the purchase of fodder and other supplies for cattle.
The scam was first uncovered in 1996, when an audit of the Bihar state treasury revealed irregularities in the payment of subsidies for fodder and other agricultural inputs. The investigation found that a large amount of money had been siphoned off from the treasury by government officials and politicians, who had set up a complex network of fraudulent transactions involving fake bills and invoices.
The total amount of money involved in the scam was estimated to be around Rs. 950 crore ($130 million), making it one of the largest financial scandals in India’s history at that time. The scam implicated several high-profile politicians, including the then Chief Minister of Bihar, Lalu Prasad Yadav, and his party colleague Jagannath Mishra.
In the years that followed, a number of investigations and court cases were conducted, resulting in the conviction of several individuals, including Lalu Prasad Yadav and Jagannath Mishra. The scam also had significant political ramifications, with the ruling party in Bihar at the time, the Janata Dal, losing power in the state as a result of the scandal.
Bofors Scam (1980s): estimated to be worth around Rs. 64 crore ($9 million).
The Bofors scandal was a major political scandal that occurred in the 1980s in India, involving allegations of corruption in the procurement of 155 mm howitzer artillery guns from the Swedish arms manufacturer Bofors AB. The scandal erupted in 1987, when it was alleged that certain officials and politicians had received kickbacks from Bofors AB to secure the deal.
The estimated worth of the Bofors scam was around Rs. 64 crore ($9 million) at the time it was uncovered. However, the actual amount of kickbacks received by those involved in the scam has been a matter of debate and controversy. Some estimates suggest that the kickbacks could have been as high as Rs. 410 crore ($57 million).
The scandal led to a political storm in India, with allegations of corruption and cover-ups. It also led to the downfall of the Rajiv Gandhi-led government, which was in power at the time. Several individuals, including politicians and bureaucrats, were charged and convicted in connection with the scam.
The Bofors scandal remains one of the most significant political scandals in India’s history, and it continues to be remembered as a landmark case in the fight against corruption.
Telgi Stamp Paper Scam (2003): estimated to be worth around Rs. 20,000 crore ($2.8 billion).
The Telgi Stamp Paper Scam, also known as the Stamp Paper Scam, was a massive financial fraud that took place in India in 2003. It was named after its mastermind, Abdul Karim Telgi, who was the kingpin of the scam. This was another one of the biggest scams in India.
The scam involved the production and sale of fake stamp papers, which are used in India as proof of payment of taxes and fees for a variety of transactions, such as property transfers, commercial agreements, and court fees. Telgi’s gang printed fake stamp papers and sold them to various government departments, banks, and private institutions across the country, making billions of rupees in the process.
The scam came to light when the police in Bangalore, Karnataka, arrested Telgi in November 2001 for possession of fake stamp papers. The investigation revealed the extent of the scam, which had spread to many states in India. The scam involved the collusion of government officials, politicians, police officers, and businessmen, who were all implicated in the fraud.
The total value of the scam is estimated to be around Rs. 20,000 crore ($2.8 billion), making it one of the largest financial scams in India’s history. The scam had far-reaching consequences, including the loss of public trust in the government and the legal system, and the arrest and prosecution of many people involved in the scam, including Telgi himself, who was sentenced to 30 years in prison.
The scam also led to a revamp of the stamp paper system in India, with the introduction of security features and a centralized printing system to prevent similar scams in the future.
StockGuru Scam (2013): estimated to be worth around Rs. 1,000 crore ($140 million).
The StockGuru scam was a major financial fraud that took place in India in 2013. The scam involved two companies, StockGuru India and StockGuru.com, which promised investors high returns on their investments in the stock market. However, the companies were actually running a Ponzi scheme, in which they used money from new investors to pay returns to existing investors.
The scam was estimated to be worth around Rs. 1,000 crore ($140 million) and affected thousands of investors across India. Many investors lost their life savings as a result of the scam.
Several people involved in the scam, including the founders of the companies, were arrested and charged with cheating and other crimes. The case is still ongoing and some investors are still awaiting compensation for their losses.
The StockGuru scam was a stark reminder of the risks associated with investing in financial schemes that promise high returns with little or no risk. Investors should always exercise caution and do their due diligence before investing their money.
Saradha Group Scam (2013): estimated to be worth around Rs. 2,500 crore ($350 million).
The Saradha Group Scam was a financial fraud that took place in India in 2013. The scam involved the Saradha Group, a consortium of over 200 private companies, which collected large sums of money from investors promising high returns on their investments. However, the group was found to be running a Ponzi scheme, using the money from new investors to pay off earlier investors, and diverting large amounts of money for personal use.
The scam was estimated to be worth around Rs. 2,500 crore ($350 million), and it affected over 1.7 million investors across several states in India, primarily in West Bengal, Odisha, Assam, and Jharkhand. The group’s main business was in chit funds, a type of savings scheme popular in India, where members contribute money into a common pool, and the accumulated funds are distributed to members in a cyclical manner.
The Saradha Group promised high returns on investment in its chit fund schemes, which attracted a large number of investors. However, the group failed to pay the promised returns, and in 2013, it collapsed, leaving investors with huge losses. The scandal led to widespread protests and public outrage, and the Indian government set up a commission to investigate the scam.
Several high-profile politicians and businessmen were found to have links to the Saradha Group, and many of them were arrested and charged with financial fraud and other crimes. The investigation into the scam is ongoing, and efforts are being made to recover the money lost by investors. The Saradha Group Scam is one of the largest financial frauds in Indian history, and it has had a significant impact on the country’s financial sector and regulatory framework.
Punjab National Bank Scam (2018): estimated to be worth around Rs. 13,000 crore ($1.8 billion).
The Punjab National Bank (PNB) scam, also known as the Nirav Modi scam, was one of the largest banking frauds in India’s history, which came to light in 2018. The scam involved jeweler Nirav Modi and his associates, who used fraudulent letters of undertaking (LoUs) to obtain loans from PNB, without providing any collateral or security. This was one of the biggest scams in India.
The scam was estimated to be worth around Rs. 13,000 crore ($1.8 billion), and it was discovered in January 2018, when PNB reported to the Central Bureau of Investigation (CBI) that it had detected fraudulent transactions worth Rs. 11,400 crore ($1.5 billion) at its Mumbai branch.
The scam involved several PNB employees who were accused of issuing fraudulent LoUs and foreign letters of credit (FLCs) without following proper procedures and without any collateral. The fraudulent transactions were conducted through multiple banks and shell companies in various countries.
Nirav Modi and his uncle Mehul Choksi, who were the masterminds behind the scam, fled the country before the scam was detected. They were later arrested and extradited back to India to face trial.
The PNB scam had a significant impact on India’s banking sector and raised questions about the efficacy of India’s banking regulatory system. The scam prompted the Indian government to introduce new measures to prevent banking frauds and strengthen the country’s banking regulatory framework.
AugustaWestland Scam (2013): estimated to be worth around Rs. 3,600 crore ($500 million).
The AugustaWestland Scam, also known as the VVIP helicopter scam, refers to the alleged corruption in the procurement of 12 AugustaWestland AW101 helicopters by the Indian government for use by top leaders, including the President and Prime Minister. The deal was signed in 2010, and the scandal came to light in 2013 when Italian authorities arrested the CEO of AugustaWestland’s parent company, Finmeccanica, on charges of bribery and corruption.
The alleged scam involved kickbacks paid to Indian officials and politicians in exchange for modifying the technical specifications of the helicopters to favor AugustaWestland and manipulating the selection process to ensure that the company won the contract. The deal was estimated to be worth around Rs. 3,600 crore ($500 million).
Several high-profile individuals, including former Air Chief Marshal S.P. Tyagi, his cousins, and a few executives of Finmeccanica were named as suspects in the case. The Central Bureau of Investigation (CBI), India’s premier investigative agency, carried out a lengthy investigation and filed charges against several individuals involved in the scam.
In 2018, a Milan court acquitted two former executives of Finmeccanica, who were accused of paying bribes to Indian officials to secure the deal. However, the trial against Tyagi and other Indian officials continued in India. In 2021, a special court in Delhi acquitted all accused, including Tyagi, due to lack of evidence.
The AugustaWestland scam remains one of the biggest corruption scandals in India’s history, and it has highlighted the need for greater transparency and accountability in the country’s defense procurement processes.
LIC Housing Finance Scam (2010): estimated to be worth around Rs. 500 crore ($70 million).
The LIC Housing Finance scam of 2010 was a major financial fraud that took place in India. The scam involved several high-profile individuals, including bank officials, LIC Housing Finance executives, and middlemen who were involved in the allocation of loans to various companies.
The scam was discovered when the Central Bureau of Investigation (CBI) conducted a series of raids in November 2010. The investigation revealed that several officials from LIC Housing Finance had colluded with middlemen to grant loans to various companies in exchange for bribes. These loans were sanctioned without following the proper procedures and were granted to companies that did not meet the eligibility criteria.
The scam is estimated to be worth around Rs. 500 crore ($70 million). Several people were arrested in connection with the scam, including top executives from LIC Housing Finance and several bank officials. The investigation also revealed that some of the money obtained through the scam was used to purchase properties in Mumbai and other parts of the country.
The scam was a major blow to the reputation of LIC Housing Finance, which is a subsidiary of the Life Insurance Corporation of India (LIC), one of the largest insurance companies in India. The incident also highlighted the need for stricter regulations and better enforcement of existing rules to prevent financial frauds of this nature.
Uttar Pradesh NRHM Scam (2012): estimated to be worth around Rs. 10,000 crore ($1.4 billion).
The Uttar Pradesh National Rural Health Mission (NRHM) scam was a major corruption scandal that took place in 2012 in the Indian state of Uttar Pradesh. The scam was estimated to be worth around Rs. 10,000 crore ($1.4 billion). This was one of the biggest scams in India.
The NRHM was launched in 2005 by the Indian government to improve the health care system in rural areas of the country. The scheme was implemented in Uttar Pradesh in 2008, with the aim of improving maternal and child health, reducing infant mortality, and providing basic health care services to people in rural areas.
However, in 2012, allegations of corruption and financial irregularities surfaced, leading to an investigation by the Central Bureau of Investigation (CBI). The investigation revealed that senior government officials and politicians had siphoned off large amounts of money meant for the NRHM scheme through fake contracts, inflated prices, and kickbacks.
The scam involved the embezzlement of funds allocated for the purchase of medical equipment, medicines, and the construction of health centers. The CBI investigation found that fake companies were set up to award contracts to politicians and bureaucrats, and the money was then transferred to offshore accounts.
Several high-profile politicians and bureaucrats were arrested in connection with the scam, including the then Health Minister of Uttar Pradesh, Babu Singh Kushwaha. Many of the accused were charged with criminal conspiracy, cheating, and forgery.
The NRHM scam was one of the largest corruption scandals in Indian history, and it exposed the deep-rooted corruption in the Indian political and bureaucratic system. The scandal had a significant impact on the public perception of corruption in the country and led to calls for greater transparency and accountability in the government’s spending on social welfare schemes.
Adarsh Housing Society Scam (2010): estimated to be worth around Rs. 1,000 crore ($140 million).
The Adarsh Housing Society scam, which took place in 2010, was a corruption scandal involving the construction of a 31-storey residential building in the Colaba area of Mumbai, India. The Adarsh Housing Society was meant to be a residential building for war widows and veterans, but it was alleged that the building was constructed illegally and many of the flats were sold to politicians, bureaucrats, and military officers at below-market rates.
The estimated worth of the scam was around Rs. 1,000 crore ($140 million), and it involved several high-profile individuals, including politicians, bureaucrats, and military officers. The scam came to light after a report by the Comptroller and Auditor General (CAG) in 2010, which found that the land on which the building was constructed was owned by the Ministry of Defence, and was meant for the welfare of war widows and veterans.
It was alleged that the politicians, bureaucrats, and military officers who obtained flats in the building had used their influence to get the land allotted to the Adarsh Housing Society, and had also violated several building and environmental regulations during the construction of the building. Several investigations were launched into the scam, and in 2011, the Maharashtra government ordered the demolition of the building.
Several individuals, including politicians, bureaucrats, and military officers, were arrested in connection with the scam, and several cases were filed against them. In 2018, the Bombay High Court upheld the order for the demolition of the building, and also ordered the government to take action against the officials who were involved in the scam. The Adarsh Housing Society scam is considered to be one of the biggest corruption scandals in India’s history.
Commonwealth Games Queen’s Baton Relay Scam (2010): estimated to be worth around Rs. 40 crore ($5.6 million).
The Commonwealth Games Queen’s Baton Relay Scam of 2010 was a corruption scandal related to the organization of the Queen’s Baton Relay for the Commonwealth Games held in Delhi, India, that year. The scam was estimated to be worth around Rs. 40 crore ($5.6 million).
The Queen’s Baton Relay is a traditional prelude to the Commonwealth Games, where a baton is carried by various athletes and dignitaries across the participating countries before arriving at the host city for the opening ceremony of the Games. In the case of the 2010 Delhi Games, it was alleged that the organizers had awarded contracts for the baton’s manufacture and relay organization at exorbitant rates, and had also made payments to non-existent firms.
The scam was exposed by the Central Bureau of Investigation (CBI) and several people were arrested, including the former chairman of the Commonwealth Games Organizing Committee, Suresh Kalmadi. Kalmadi was charged with conspiracy, forgery, and cheating, among other offenses. Other individuals involved in the scam included Lalit Bhanot, the secretary-general of the organizing committee, and VK Verma, the director-general of the committee.
The scam not only led to a loss of public funds but also brought embarrassment to India, which was already under scrutiny for its preparations for the Games. The incident highlighted the need for greater transparency and accountability in the organization of major sporting events in India.
National Spot Exchange Scam (2013): estimated to be worth around Rs. 5,600 crore ($780 million).
The National Spot Exchange (NSEL) Scam, also known as the NSEL Crisis, was a financial fraud that took place in India in 2013. It is estimated to be worth around Rs. 5,600 crore ($780 million).
NSEL was a commodity spot exchange in India, which offered electronic trading platforms for commodities such as metals, agricultural products, and other goods. It was promoted by Financial Technologies (India) Limited (FTIL), which was founded by Jignesh Shah.
The scam involved NSEL and FTIL facilitating trading of paired contracts that involved spot trading and futures trading in commodities such as sugar, wheat, and cotton. NSEL sold these paired contracts to investors, promising them a return on investment. However, in reality, there was no physical trading of commodities and the entire process was a Ponzi scheme. Investors were lured into investing in these contracts by offering attractive returns, which were not sustainable.
When the scam was uncovered, it led to a lot of panic and chaos among investors, many of whom were small investors. The government intervened and ordered NSEL to suspend trading, which led to a payment crisis. The default on payments led to the collapse of the exchange and affected thousands of investors who lost their money.
The scam also led to investigations by various agencies, including the Serious Fraud Investigation Office (SFIO) and the Enforcement Directorate (ED). Jignesh Shah and other senior officials of FTIL were arrested and charged with various offences, including cheating, forgery, and criminal conspiracy. The investigation also revealed the involvement of brokers and other entities in the scam.
The NSEL scam is considered to be one of the biggest financial frauds in India and has raised concerns about the lack of regulatory oversight and transparency in the country’s financial markets. The scam has also led to reforms in the regulatory framework and strengthened investor protection measures.
Rajasthan Medical Colleges Admission Scam (2018): estimated to be worth around Rs. 1,000 crore ($140 million).
The Rajasthan Medical Colleges Admission Scam refers to a corruption scandal that occurred in 2018, in which various individuals were accused of accepting bribes in exchange for admission to medical colleges in Rajasthan, India. The scam was estimated to be worth around Rs. 1,000 crore ($140 million).
According to reports, the scam involved the manipulation of the admission process for medical colleges in Rajasthan. Allegedly, candidates were able to secure admission to medical colleges in exchange for large sums of money paid to various individuals, including college officials and government officials.
The scam was uncovered following an investigation by the Central Bureau of Investigation (CBI), which led to the arrest of several individuals, including government officials and college administrators. The investigation also revealed that the scam had been ongoing for several years, and that a large number of candidates had been admitted to medical colleges through corrupt means.
The Rajasthan Medical Colleges Admission Scam is one of several high-profile corruption cases that have been uncovered in India in recent years, highlighting the need for greater transparency and accountability in the country’s education system.
