11 Biggest Bank Scams In India Till Now

Public Sector Banks in India lost at least 227.43 billion (Rs 22,743 crore) owing to fraudulent banking activities between 2012 and 2016, according to an IIM-Bangalore study. This was recently informed by Electronics and Information-technology minister Ravi Shankar Prasad in the Parliament, citing Reserve Bank of India (RBI) data. In between April and December 2016, over 3,500 cases of fraudulent transactions were reported involving Rs 177.50 billion, which were facilitated by 450 private and public sector employees.

* 2011

In 2011, investigative agency CBI revealed that executives of certain banks such as the Bank of Maharashtra, Oriental Bank of Commerce and IDBI created almost created 10,000 fictitious accounts, and an amount of Rs 1.5 billion or Rs 1,500 crore worth loans was transferred.

* 2014

- Three years later in 2014, Mumbai Police filed nine FIRs against a number of public sector related to a fixed deposit fraud to the tune of Rs 7 billion or Rs 700 crore. In the same year, Electrotherm India, which defaulted payment of Rs 4.36 billion or Rs 436 crore to the Central Bank. Apart from that, Bipin Vohra, a Kolkata-based industrialist allegedly defrauded the Central Bank of India by receiving a loan of Rs 14 billion using forged documents.

- Besides, another scam that was unfolded in 2014 was the bribe-for-loan scam involving ex-chairman and MD of Syndicate Bank SK Jain for involvement in sanctioning Rs 80 billion or Rs 8,000 crore.

- In 2014, Vijay Mallya was also declared a willful defaulter by Union Bank of India, following which other banks such as SBI and PNB followed suit.

* 2015

- In 2015, another fraud that raised eyebrows involved employees of Jain Infraprojects, who defrauded Central Bank of India to the tune of over Rs two billion. In the same year, employees of various banks were involved in a foreign exchange scam involving a phony Hong Kong corporation. They had defrauded the systems to move out Rs 60 billion.

* 2016

- One of the biggest banking frauds of 2016 is the one involving Syndicate Bank, where almost 380 accounts were opened by four people, who defrauded the bank of Rs 10 billion using fake cheques, LoUs and LIC policies.

* 2017

- In 2017, Mallya's debt - owing to defunct Kingfisher Airlines - rises to Rs 9.5 billion or Rs 9,500 crore to IDBI and other bank branches. CBI prepares chargesheet but he had fled the country in 2016. Currently residing in the UK, Mallya's extradition is being sought at the country's Westminster Court.

- In the same year, Winsome Diamonds - also known to be India's second largest corporate defaulter - came under the scanner after CBI booked six cases against the group and the companies under it. This case is similar to the one observed in the fresh bank fraud involving Nirav Modi group: Letters of Undertaking were issued by Indian Banks to Jatin Mehta's Winsome Diamonds. It may be noted that the gaps were first discovered in 2014. From mid-2013 the group failed to payback its debts, and was declared a willful defaulter by banks. The total debt amounts to almost Rs 7,000 crore.

- Another case that grabbed eyeballs in the same years involved Deccan Chronicle Holdings for causing a loss of Rs 11.61 billion; CBI registered FIR against five PSBs and six chargesheets were filed against the company.

* 2018

- Last but not the least by any means, the fresh bank fraud to the tune of Rs 11,450 crore involving diamond merchant Nirav Modi. It has come to light that the company, in connivance with retired employees of PNB, got at least 150 Letter of Undertakings (LoUs), allowing Nirav Modi Group to defraud the bank and many other banks who gave loans to him. An Indian Express report says that in addition to the Rs 11,450 crore, Modi also defrauded 17 other banks of Rs 3,000 crore. In this case, however, fake LoUs were recycled by the diamond jewellery group and illegally issued to other banks for borrowing money. Nirav Modi, his family and partners have fled the country and an exclusive report by TIMES NOW reveals that he is currently in the United States.

- Another case that came to light this year concerns a former Andhra Bank director, who was arrested by Enforcement Directorate, in connection to an alleged Rs 5 billion bank fraud case, involving a Gujarat-based pharma firm.