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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    8Harshad Mehta Scam worth ₹3500 cr

    Harshad Mehta was one of the most trusted stock breakers of his time. Through his experience in the stock market, he was cognizant of all the loopholes in the Indian banking system and ensured enormous profits for himself through illegal dealings. A few finance experts believe that he did not even commit fraud but merely exploited the loopholes in the system! Harshad Mehta was the kingpin of a handful of stockbrokers who managed to siphon off 3500 crore rupees from unassuming banks on the pretext of striking ready forward deals (15-day loan from one bank to another) against government securities (bonds). In 1992, the government had set up a rule within which banks had to show their balance sheet on each Friday with a certain minimum sum of money invested in the government bonds and the average amount of money invested per day during the 7 day period to be over the fixed minimum amount.

    Now, the smaller banks would sell some government bonds to invest elsewhere during the week. But come Friday, they need to pile up a number of bonds that they have bought to bring their daily average over the minimum amount as stipulated by the government. So, the smaller bank needs to buy these bonds from the larger banks who have that average maintained, and then some more. These banks then approached Harshad Mehta and his associates as he was a trusted broker and all major banks knew him well. But Harshad Mehta opined that he did not know where he would buy the bond from and therefore asked the smaller bank to make a cheque in his own name instead of the major bank’s name.

    But instead of paying the major banks, he shows them fake bank receipt which acted as the receipt for money received. Now, with the money from the smaller banks, Harshad Mehta started buying crore worth of shares of reputed companies like ACC, Videocon etc. and the share prices of these companies skyrocketed to as much as 450 times. He acted like he was undertaking the transactions on behalf of the banks. Once the share prices were high enough, he dumped all these shares into the market and made astounding profits. He would then return the respective money to the banks!

     

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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!

    16 COMMENTS

    1. IN OUR BUILDING ONE, MR PARTHO SARATHI MUKHERJEE OF PRIYA VIDEO PARLOUR OF 8/4 R.B.C,ROAD PS&PO DUM DUM,EARLIER WARD NO-9,LATER ON WARD NO-19,HAVE DUPED CRORES OF RUPEES IN DIFFERENT LOOKS&ON DIFFERENT PAN CARDS/TRADE LICENCES,ALONG WITH MALAY GHOSH OF PARIMITA/SHIB DURGA TAILORS & 0UT FITTERS,OF SAME ADRESS,THEY ARE ABSCONDING PERSONAL LOAN FROM UNCOUNTED BANKS,BUT I CAN PROVIDE THERE WHERE ABOUTS,IF IT CAN HELP TO RECOVER IE:BANKS BAD DEPTH,

    2. Not PRIYA, PRITHA TO BE READ,{MY SELY ALONG WITH MY LATE FATHER,MADE AN AGREEMENT WITH MR PARTHO SARATHI MUKHERJEE,OF 8/4 R.B.C,ROAD,OF PS&PO DUM DUM,AS SHOP NO 7-5O-SFT MORE OR LESS&50-SFT MORE OR LESS ON DIFFRENT OCCASION/TIME,DURING MAKING FINAL MEASURMENT IE:DEED FOR REGESTRATION,INSPITE OF MAKING SO,HE IS ABSCONDING &CAME TO KNOW THAT HE HAS GIVEN THE SHOP TO SOME STRANGER,BREAKING THE WALL OF TWO SHOPS IE:SHOP NO 7&7B,

    3. TILL NOW THE BANKS HAVE NO CLUE,ABOUT THE CHEATER IE:MR PARTHO SARATHI MUKHERJEE HAVE DUPED CRORES OF RUPEES/AMOUNT,WHICH CAN SERVE POOR PEOPLES NEED/REQUIREMENT,TO RUN THEIR LIVELEHOOD,STILL BANK IS DEFF&DUMP,WHAT WILL HAPPEN TO REALY NEEDYTL POOR PEOPLE {(BHAGWAN HEE MALIK HAI AISAY BANKOH KAA)

    4. Rahul has proved self at many times. Not just 10. He is the one who opposed the bill to prevent criminals getting into politics. Who else could have fine it?

      Union finance minister of today may say we hate very but get trapped in his own words by talking of nexus broken by him between corrupt bank babus and borrowers http://www.vov.media also indicated like this recently. So he spoke but never bothered what. If there was nexus etc and he broke who were the culprits? Where was the chargesheet and where is prosecution?

      Now we know everything but we know nothing. People still sometime believe fake news which they may get as breaking news, mostly sponsored perhaps.

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