We take a look at a number of the largest financial institution fraud instances to hit India in a decade | Popgen Tech


The Central Bureau of Investigation (CBI) this week arrested Chanda Kochhar and her husband, Deepak Kochhar in reference to the Rs 3,000 crore Videocon Group mortgage rip-off. There have been a number of different individuals additionally booked within the case below the related sections of the IPC associated to felony conspiracy and provisions of the Prevention of Corruption Act.

Right here we check out the highest 10 financial institution fraud instances that hit India within the final 10 years.

Vijay Mallya Fraud case

The King of Good Instances, as Mallya was identified, is likely one of the largest offenders in relation to financial institution fraud. The businessman is now bankrupt. Kingfisher Airways owes greater than Rs 10,000 crore to varied banks, with SBI, PNB and IDBI all lending it cash. Mallya fled India in early 2016. Of the unique Rs 6,900 crore mortgage to Kingfisher, SBI had lent Mallya Rs 1,600 crore.

Learn additionally | CBI recordsdata FIR in opposition to Company Energy Ltd in Rs 4K-cr financial institution fraud case

Punjab Nationwide Financial institution had Rs 800 crore, IDBI had Rs 650 crore, and Financial institution of Baroda had Rs 550 crore. The banks had approached a particular Prevention of Cash Laundering Act (PMLA) court docket which allowed them to promote sure immovable properties and securities belonging to Mallya to get well dangerous loans. The Indian authorities is attempting to get Mallya extradited from the UK to India to face felony proceedings.

Punjab Nationwide Financial institution rip-off

Punjab Nationwide Financial institution rip-off has been termed as the largest in India for Rs 11,400 crore and the principle accused have been jeweler Nirav Modi, Mehul Choksi, Nishant Modi, Ami Modi and others, together with some workers of – GNP. The rip-off concerned ‘letters of dedication’ fraudulently issued by a junior officer within the financial institution to acquire short-term loans from abroad financial institution branches to pay distributors and the transactions have been by no means registered with the financial institution, the place the officers additionally didn’t discover the fraud.

Learn additionally | CBI recordsdata three recent FIRs in opposition to Mehul Choksi in Rs 6,700 crore fraud case

A CBI probe uncovered the rip-off the place the accused defrauded 30 international branches of Indian banks. Modi, Choksi fled India a number of days earlier than the rip-off turned public. Modi, who was jailed in London had just lately appealed his extradition which was rejected.

Financial institution fraud Winsome Diamonds

Businessman Jatin Mehta’s Winsome Diamonds fraudulently procured letters of enterprise from Indian banks and the fraud was first caught in 2014. Mehta and his spouse Sonia and their sons Vipul and SurajIt fled India leaving a mortgage default of practically Rs 7,000 crore. Greater than 10 instances have been filed in opposition to Mehta.

ABG Shipyard fraud case

The CBI charged ABG Shipyard Restricted, its former chairman and managing director Rishi Kamlesh Agarwal, Santhanam Muthaswamy, Ashwini Kumar, Ravi Vimal Nevetia, Sushil Kumar Agarwal, and one other agency, ABG Worldwide Pvt Ltd for embezzling Rs 22,842 crore from SBI and 27 different lenders. . The mortgage account was named as a non-performing asset in July 2016, and fraud was detected in 2019.

Kanishk Gold financial institution fraud

Kanishk Gold Pvt Ltd has been charged by CBI for allegedly defrauding 14 banks run by SBI out of Rs 824 crore. The homeowners have been accused of taking massive loans for the enterprise and being dangerous to the rights and pursuits of the banks, the go well with stated, in accordance with media reviews. ED in Chennai has frozen properties value Rs 48 crore of Kanishk Gold Pvt Ltd udner the PMLA.
SBI stated the safety to cowl losses resulting from fraud is round Rs 156 crore.

Andhra Financial institution Fraud

Gujarat-based pharmaceutical firm Sterling Biotech Restricted has been embroiled within the Andhra financial institution fraud case as 4 administrators of the corporate have been named as accomplices within the Rs 8,100 crore financial institution rip-off. Nitin Sandesara, Chetan Sandesara, Dipti Sandesara and Hiteshkumar Narendrabhai Patel, have been named fugitives within the rip-off. The corporate has been accused of buying over Rs 5,000 crore in loans from a consortium led by Andhra Financial institution, which has since change into non-performing belongings.

Rotomac Pen Rip-off

Rotomac International Personal Restricted of Kanpur, its promoter Vikram Kothari, and different administrators have been charged by the CBI with allegedly defrauding lenders to the tune of ₹ 750.54 crore. The corporate has a complete excellent of Rs 2,919 crore in opposition to a consortium of seven banks led by Financial institution of India. The financial institution had been offering the corporate with loans since 2002 and in 2015, the account was labeled as a non-performing asset (NPA). Kothari died in early 2022 after an accident at residence. He was arrested in reference to the case in 2018 and spent two years in jail, after which he was granted bail on well being grounds.

Videocon Case Fraud

An FIR has been filed in opposition to former ICICI Financial institution CEO Chanda Kochhar, her husband Deepak Kochhar, and Videocon group MD Venugopal Dhoot for alleged irregularities in financial institution loans to the group again in 2012. The case pertains to the time when Kochhar was the CEO of ICICI and he lent Rs 3,250 crore to Dhoot’s Videocon Group. An informant, who held shares in each the financial institution and the group, claimed the mortgage to Videocon was leveraged by Kochhar in change for offers in NuPower Renewables and Supreme Power, a clear power agency run by Kochhar’s husband. .


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