Top 10 Scams that Rocked the Nation

    Transparency International (TI) is a non-government organization which was founded way back in 1996 to combat corruption throughout the world. It aptly defines corruption as ‘the misuse of public power for private benefit’. The organization, along with leading the fight against corruption comes up with a Corruptions Perception Index which ranks countries by their perceived level of corruption. India has found itself in the lower 70s and upper 80s since 2010 with a score hovering between 35 and 40 out of hundred. The score and the ranking do justice to the ubiquitous corruption that we encounter almost daily while leading our mundane lives. Despite the various claims by the top guns of the Indian government, India still runs on corruption as the common man is kicked in his gut incessantly till he can no longer cough up any more money. From the police to the official clerks, bribe is what gets your work done. Obviously, in this hierarchical structure, the bureaucrats sitting at the top of the pyramid demands a lot more than just a few hundred rupees to devoid the government exchequers of a few hundred to thousand crore rupees. We would not be exaggerating if we state that an Indian in his lifetime witnesses almost double the number of scams as his age! So, we have here pulled up ten of the most notable scams from the star-studded Indian history.

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    10The Mundhra Scam worth ₹1.24 cr

    The Mundhra Scam was the 1st scam of free India which came or was rather thrust into the limelight due to the vitriolic relationship between the then Prime Minister, Jawahar Lal Nehru and his son-in-law and MP, Feroze Gandhi. It started with an innocuous looking report in the newspaper, The Statesman that an amount rising to 1 crore rupees had been withdrawn from the funds of the Life Insurance Company (LIC) and has been invested in a private enterprise based out of Kanpur. The unravelling of the 1st scam of India began after Feroze Gandhi asked the government in the parliament if premiums from 5.5 million LIC policyholders had been used to purchase shares at inflated prices in companies controlled by a certain Haridas Mundhra. In response, the then finance minister, Krishnamanchari could only fathom, “You are basing your allegations just on newspaper reports. This is not proper. Do you have evidence?” Feroze Gandhi had in his possession confidential correspondence between Krishnamachari and the finance secretary, HM Patel and was willing to produce them.

    The Prime Minister, Jawahar Lal Nehru responded by setting up an enquiry commission under former Chief Justice, M.C Chagla. Mr. Chagla got on with the task at hand in a diligent and quick manner and was able to submit his report in less than a month. His report confirmed that LIC had bought 1.24 crore rupees worth of illegal shares in 6 companies owned by Haridas Mundhra. Mundhra was in turn bleeding these companies and siphoning away all the money that was invested. On paper, LIC had bought these shares to stabilize the market but in reality, it was done to help Mundhra from going bankrupt. The orders to do so seemed to have come from the highest echelons of the government.

    The hearings of the commission were held in public and through the various depositions, Mr. Chagla learnt about the near bankrupt status of the companies owned by Mundhra. Justice Chagla determined that the Finance Secretary, Haribhai M. Patel, along with two LIC officials, L S Vaidyanathan may have colluded on the payment, and should be investigated. Subsequent inquiry committee headed by Retired Justice Vivian Bose cleared the names of two civil servants but passed strictures against finance minister for “lying”. Haridas Mundhra was arrested from his suite at Claridge’s Hotel and was served time for 22 years. TT Krishnamachari resigned from the post of finance minister as a result of the enquiry.

     
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    I’m a huge Nadal & Liverpool fan. A massive foodie who is crazy about GoT, Harry Potter, Calvin & Hobbes and Friends, I love reading non/historical fiction. Used to be a tennis player before work caught up. Tennis has now been conveniently substituted by cycling.I am an avid traveler who believes that the pleasure is in the journey!

    9 COMMENTS

    1. India is a very Unique Nation ! It has a very Patriotic Italian as President of Indian National Congress , who is the chairperson of United Corruption Parties , Indo Italian Vice President , already hoisted as next President by inheritance , Patriotic Pakistanis , patriotic Tamilians , Kannadigas , Bengalis ! All MLAs , MPs , Secularists totally United by Corruption and having huge Black money in Swiss Banks ! Cartoonist Bala who drew Naked sketches of Tamilian Commissioners , Ministers availing all facili

    2. Facilities , Previlages but not taking responsibility for Chennai’ s tragedies has not made a similar Cartoon of Sonia , Sasikala , Mayawati , Mamata who stand totally exposed of their Corrupted actions ! May be Bala wants to respect Women in them ! They are more Dangerous than Men

    3. The greatest scam ever in India is the Bank NPA to the tune of 9 lac crores so far.It is a pre-planned robbery by the defaulters with unholy Nexus between the industrialists, bank officials and the politicians.Those defaulters lost nothing by not paying the dues, but the Banks are on the verge of collapse.The defaulters became richer, spending life like maharajas instead of going to jail for cheating the Banks.Only two industrialists are responsible for Bank NPA to the tune of one lac crores.Whether they are in jail or living a lifestyle of maharajas? Why their properties haven’t been attached yet ? Common people are punished, but rich get concessions.

    4. Yes Saha ji! When genuine commoners approach banks for a small loan, they (the banks) put forwards a hundred obstacles! For the type of Mallyas, they offer loans in the speed of “bullet train” (mr. modi ji’s vision)! While on the subject and away from the theme I invite you to view my video – Homage to Pandit Nehru by p g joseph – in youtube. And if deemed fit, you may kind recommend the same to your friends too. Thank you.

    5. Bank managers or executives must be made responsible for default on bank loans. Loans are given only mortgage basis. Simply if they do not pay properly, sell properties and get back your money.

      Politicians must be kept in distance. Neither they recommend nor a party of any sort.

      If banks have funds thet cab give housing loans, personal loans, loans for business purpose.

    6. Rajan pillai an ordinary policemen stared his career way back in
      1970 “s as police man in Nagaland
      and now he is exposed involving
      a scam of more than 12000 Cr
      Now surfaced in Kerala with many
      Number of business.
      He Is now at the helm of affairs
      as an acting dgp in Nagaland,
      Raids and other formalities were
      Conducted but nothing happened
      He says he is a Guruvayur Appa
      Bhakthan ,in which case the tribal
      We’ll fare money can be swindled.
      He is even dare’s to challenge
      Our prime minster and every body
      who made our worth for living

    7. Anil Ambani has 47000 thousand crores loan and he has defaulted to pay still he is being given Defence contacts.He should be behind bars.They float company and get money from the public as shares.They use this money free we fools jack the share price they again earn by selling promoters quota shares.Who is a fool

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