Top 8 Biggest Bank scams of India

These are the most significant bank scams in India

The banking system of any country is the foundation of its economy. Due to more losses to the banks, it makes a difference to every person of the country because the amount deposited in the banks belongs to the country's citizens. People save big and small investments in banks. It is a matter of misfortune for the country that a significant amount is declared as NPA here, while many prominent people in a business run away with public money. The recent PNB scam is the latest example of this. Similarly, the hearing of Vijay Mallya's case is going on in a London court. Let us tell you about some of the most extensive banking scams in the country.

According to one figure, the government banks of the country have lost Rs 22,743 crore due to the scam. According to the announcement made this financial year, there is a bad loan of 10.25 lakh crore on banks. According to the report, the highest number of frauds have happened in ICICI Bank, and after this comes the number of SBI. Let us tell you about some of the most extensive banking scams in the country.

1. PNB Scam

Eleven thousand four hundred thousand crore PNB scam is the most extensive banking scam in the country. Its main accused is Nirav Modi, who has fled the country. It also includes Nirav's maternal uncle Mehul Choksi. The Enforcement Directorate is investigating Nirav Modi and Mehul Choksi on charges of cheating. Recently, there was talk of Choksi being in Antigua and Barbuda. The PNB scam continued for seven years, but the RBI and the Finance Ministry did not know about it. Many employees of the bank were also involved in this scam; action is being taken against them.

2. Vijay Mallya's Bank Scam

Liquor businessman Vijamalya, who fled the country, defrauded 13 banks to the tune of Rs 9,432 crore. In this, SBI gave the maximum loan of 1600 crores. It is followed by PNB (800 crores), IDBI (650 crores), and Bank of Baroda. Mallya currently lives in London, and the government is trying to extradite him. The case is going on in a London court. The verdict in the matter is to be pronounced on December 10.

3. Allahabad Bank Scam

About Rs 2,000 crores of Allahabad Bank is also implicated in the Rs 11,400 crore scam based on letters of credit issued by Punjab National Bank (PNB). Apart from this, the country's largest lender State Bank of India (SBI), has also given a loan of Rs 1,360 crore. SBI has provided a loan of $ 212 million or Rs 1,360 crore based on the letter of credit issued by the NB. However, this public sector bank has not given any loan directly to Nirav Modi. Modi has been given a loan of Rs 21.2 crore based on NB's letter of credit or guarantee (Lou).

4. Rotomac Pen Scam

Vikram Kothari, the promoter of Rotomac, is accused of forgery of Rs 3,695 crore from seven banks. Vikram Kothari took the help of public sector banks between 2008 and 2013. During this, Kothari resorted to Foreign Letters of Credit (FLC) to pay his overseas buyers and suppliers. Rotomac Global Pvt Ltd, engaged in intermediary trading and manufacturing of PAN, regularly approached seven banks for credit ratings of Rs 15 crore to Rs 200 crore between 2008 and 2013. These include the International Business Branch of Bank of Baroda located at The Mall, Kanpur. The money was then diverted to Rotomac and its subsidiaries instead of being used to pay dues to buyers and suppliers.

5. Sahara scam

On August 31, 2012, the Supreme Court had held that the two finance schemes run by the group were illegal, and hence the group would have to return the investors' money along with interest. Both the finance firms had sold the bonds to small investors claiming that they would get three times the face value after ten years. SEBI says that Sahara had raised Rs 27,000 crore from 2.7 crore investors. Sahara earlier noted that this money had been invested in real estate projects in 63 cities. Later, she claimed that she had returned the entire capital, and only the remaining Rs 5,000 crore was born.

6. RP Infosystems Bank Scam

CBI is investigating this matter. It is alleged that RP Infosystems company took a loan of Rs 515 crore by using forged documents and later refused to repay it. This scam is from Kolkata, and IDBI Bank has also been duped in this.

Let us know today about such big bank scams of the country, due to which the banking system collapsed.

7. PMC Bank Scam

A big scam in Punjab and Maharashtra Cooperative Bank came to light recently. This financial fraud was going on for almost a decade. Investigating officials say that the bank management led by Joy Thomas had opened thousands of dummy accounts to fund construction company HDIL. This game was going on for about ten years. The regulator initially realized that Thomas and some people in the management had given Rs 4,226 crore (73% of the bank's total loan) to only one company, HDIL, which has now gone bankrupt.

8. Simbhaoli Sugars Loan Scam

Oriental Bank of Commerce has accused Simbhaoli Sugars of defaulting on a loan of Rs 200 crore. In this case, the CBI has registered a claim against the company's chairman, CEO, MD, CFO, and directors. Taking action in this case, CBI has raided a total of 8 locations. Raids have been conducted at these eight places, one is Hapur in Uttar Pradesh, one is from Noida, and six are from Delhi.