12 Worst And Biggest Scams In Indian History Which Shamed The Country
You are here
Home > India > Incredibly Corrupted India: 12 Worst And Biggest Scams In Indian History Which Shamed The Country

Incredibly Corrupted India: 12 Worst And Biggest Scams In Indian History Which Shamed The Country

scams in india

A corruption scam is like an infectious disease which affects the whole country. A country’s progress is shrunk by the corruption. When we talk about the negatives of India then obviously the first thing comes to our mind mind is its corruptions. The people in charge of the system or the people who have the power are responsible for the corruption. But somehow in some point, we ourselves are responsible for this by allowing or ignoring these.

We will take a look at the 12 worst corruption scams which are most talked and caught much attention. But the hard truth is people don’t teach anything from these scams and that is why the corruptions are still continuing.

Coal Allocation Scam, 2008 – 1, 86, 000 Crore

coal scam

This is the biggest scam in Indian history. Clearly, it is the mother of all scams because of the huge amount of black money involved here. The CAG (Comptroller and Auditor General) report on the scam has accused of illegally providing the coal deposits to private and state-run units instead of auctioning them in the public. The scam took place under Manmohan Singh government and emerged in 2012.  This scam has resulted in the loss of 1, 86, 000 crore rupees in the period of 2004-2009. Media release estimated the amount 10, 60, 000 crore rupees.

The BJP lodged a complaint and it led to a CBI probe. It demanded Manmohan Singh’s resignation.

On 27th August, 2012 Singh read a statement in the Parliament and refuted the CAG report.

2G Spectrum Scam, 2008 – 1, 76,000 Crore

2g spectrum scam

This is one of the most expensive scams in Indian scam history. Former telecom minister A Raja siphoned 1, 76, 000 crore rupees by evading the 2G licence norms. While the CAG estimated the amount Rs 1, 76, 000 crore, the CBI figured it out Rs 30.984 crore.

Investigations disclosed that 122 licences were issued in 2008 during the term of former minister for communications and IT A Raja. He was booked under the Prevention of Corruption Act and was forced to resign on November 14.

The other accused who were involved in the scam including the then Tamil Nadu Chief Minister M. Karunanidhi’s daughter MK Kanimozhi, late Pramod Mahajan, former telecom secretary Siddhartha Behura, Raja’s private secretary RK Chandolia, bureaucrat Pradip Baijal and Secretary of the Department of Telecommunications PJ Thomas.

Wakf Board Land Scam, 2012 – 1, 50, 000 Crore

wakf scam

In March 2012, the Chairman of the Karnataka State Minorities Commission Anwar Manippady submitted a report to the then Karnataka Chief Minister DV Sadananda Gowda. The report alleged that 27, 000 acres of land controlled by the Karnataka Wakf Board had been misappropriated and allocated illegally.

The Karnataka Wakf Board is a Muslim charitable trust that has been donated for the use of the underprivileged. The report claimed that almost 50 percent of the land owned by Wakf board was misappropriated by politicians and board members.

Manippady recommended that the government established a committee to investigate illegal activities of the Wakf Board and appoint a task force to recover properties that the Wakf Board illegally sold.

Commonwealth Games Scam, 2010 – 70, 000 Crore

cwg scam

The honour to host an event like CWG turned a shameful event. This scam drew an international attention. Estimated Rs 70, 000 crore was spent on the game of which only half the amount was actually spent on the event. The Centre announced the formation of a special committee to investigate the allegations of corruptions and mismanagement against the organising committee.

The investigation revealed the Organising Committee chairman Suresh Kalmadi was the main accused. He has been accused of awarding a contract to Timing, Scoring and Results (TSR) system for the 2010 CWG to the Swiss Timing at a much higher bid.

Apart from him, the CBI charged eight persons including former Secretary General Lalit Bhanot and former Director General VK Verma.

Telgi Scam, 2002 – 20,000 Crore

telgi scam

Conning master Abdul Karim Telgi printed fake stamp papers and then sold them to different financial institutions and banks. This affected various states and the scam was worth more than Rs 20, 000 crore. 12 cases were registered between 1992 and 2002 against Telgi relating to forged stamps in Maharashtra and 15 cases in other parts of the country.

The scam is possible because the accused had strong connections with high government officials.

Saradha Group Chit Fund Scam, 2013 – 20, 000 Crore

saradha scam

The chit fund scam was a major financial scam and a political scandal caused by the collapse of a Ponzi scheme run by Saradha Group. A consortium of over 200 private companies that was believed to be running collective investment schemes popularly but incorrectly referred to as chit funds in West Bengal.

Mamata Bannerjee-led state government had set up an inquiry commission to investigate the collapse and set up a fund of Rs INR 5 billion to ensure that low-income investors were not bankrupted. The central government through the Income Tax Department and Enforcement Directorate launched a multi-agency probe to investigate the Saradha scam and similar Ponzi schemes.

In a letter to the CBI, group chairman Sudipto Sen confessed he had paid a large amount of money to the politicians. Sudipto Sen’s close aide Debjani Mukhopadhay was also arrested. Apart from them, many well-known personalities were involved in this scam including two MPs Kunal Ghosh and Srinjoy Bose, Sports and Transport minister of WB Madan Mitra, former West Bengal Director General of Police Rajat Majumdar, a top football club official Debabrata Sarkar.

Scorpene Deal Scam, 2005 – 18, 000 Crore

scorpene deal scam

It is one of the biggest scandals in Indian Navy. Secret navy documents were sold to the makers of the Scorpene submarine. Then Defence minister Pranab Mukherjee had approved a deal to build Scorpene-class submarines worth Rs 19, 000 crore with Thales, France in October 2005.

The amount was channelled and paid to middleman arms dealer Abhishek Verma. Ravi Shankaran, the relative of the then chief of navy staff Arun Prakash was the main accused in the Navy War Room spy scandal.

Satyam Scam, 2009 – 14, 000 Crore

satyam scam

This is the biggest scam in the corporate world. Chairman of Satyam Computers, B Ramalinga Raju was accused of fudging the books of accounts for several years and inflating revenues and profit figures of Satyam.

Raju admitted in a letter that he inflated the balance sheets to show Rs 5.361 crore at the end of September 2008, which was actually more than 300 crore.

After the scam, the company was taken over by the Tech Mahindra and it saved a number of employees from unemployment.

Stock Market Scam, 1992 – 5000 Crore

stock market scam

Stock market scam or Harshad Mehta scam had affected many people and it was first of its kind involving millions of investors. Harshad Mehta, the former employee of New India Assurance, he alone decided the fate of the stock market and also the banks trusted him. He had siphoned money from banks to invest in the stock market to manipulate prices.

Harshad Mehta and his coterie of investors increased prices of a particular stock triggering interest from small investors and for that, small investors lost their life’s savings. The impact of the scam was so much that the banks went into liquidation.

He was convicted by the Bombay High Court and Supreme Court of India and imprisoned for 9 years until he died in 2001.

Hawala Scandal, 1990-91 – 1000 Crore

hawala scam

The Hawala scandal involving payments worth Rs 1000 crore sent by politicians through four hawala brokers, the Jain brothers. In 1991, an arrest linked to militants in Kashmir led to a raid on hawala brokers, revealing evidence of large-scale payments to national politicians. It was alleged that terror outfit Hizbul Mujahideen received funds from this.

The investigation revealed the top most political leaders including LK Advani, P Siv Shankar, VC Shukla, Madan Lal Khurana, Sharad Yadav and BalramJakhar. As the case was sensitive and involved political leaders, no one was arrested and the case was closed.

Fodder Scam, 1996 – 900 Crore

fodder scam

The Fodder Scam or popularly known as “Chara Ghotala” had been going on for two decades and it came to light in 1996 in Bihar. In this scam the fabrication of fictitious livestock for which fodder, medicines and animal husbandry equipment worth Rs 900 crore was supposedly procured.

The then Chief Minister of Bihar Lalu Prasad Yadav was forced to resign with former Chief Minister Jagannath Mishra.

Bofors Scam, 1980-90 – 100-200 Crore

bofors scam

This scandal was a major corruption scam in the 1980s and it stirred a big controversy. The then Prime Minister Rajiv Gandhi and several other powerful persons were accused of receiving a bribe from the Swedish arms company Bofors, the largest arms manufacturing corporation of Sweden for a contract they won to supply 155 mm field howitzer to India.  The NRI Hinduja family was also involved in the scam. Italian businessman Ottavio Quattrocchi was the prime accused in the scandal.

In April 1987, Swedish Radio alleged that Bofors bribed top Indian politicians and defence officials to seal the deal. However, the story came to an end on July 13, 2013, without proper punishment.

These were the biggest scams in Indian history. Apart from these, there are many corruptions which affect the nation’s integrity. The lust of power, money is the major reason of these corruptions. Can corruptions be removed from India? The answer is really unknown.

Suchismita Biswas
Suchismita Biswas
Pen is mightier than swords - these words make me passionate about writing. Except writing I love to travel , love to explore the unknown places, love photography and love listening to music. Also I am an avid reader of books. I'm a simple girl but I am what I am.

Leave a Reply

Top