Satyam Scam: INR 14,162 Crore (Approx.)
Ramalinga Raju, founder of Satyam Computers, and his brother Rama Raju were the perpetrators of this scam. Among the biggest scams in recent history, Raju and his aides started overstating the amount in the balance sheet for transactions. During a probe by CBI, Ramalinga Raju confessed to forging the company’s revenues, so as to inflate share prices. The loss to shareholders was estimated at around ₹14,000 crores before Satyam was sold to Tech Mahindra in an auction.
7 Biggest Financial Scams in India
India has faced some of the biggest financial scams in the last two decades, leaving a trail of deceit and financial loss. With India being a fast-growing economy, there has been a huge influx of money flowing in and out of the system. While this has surely paved the way for economic growth, it has also allowed some individuals to use the loopholes in the financial system to their advantage.
These scams often involve cleverly devised projects that turn out to be fraudulent, causing immense harm to investors. The stock market, a crucial aspect of India’s financial landscape, has been a breeding ground for manipulation, affecting the trust of many. Various cases have unfolded, revealing Ponzi schemes, where promised returns to lure in unsuspecting individuals, only for their investments to vanish. These financial missteps underline the importance of scrutinizing projects, understanding the stock market, and being cautious in financial dealings to protect against such cases.
From the Harshad Mehta case to the infamous 2G spectrum scam, here’s a list of the 7 biggest financial scams in India:
List of Biggest Financial Scams in India
- 1. ‘Coalgate’: INR 1.86 Lakh Crore (Approx.)
- 2. 2G Spectrum Scam: INR 1.76 Lakh Crore (Approx.)
- 3. CWG Scam: INR 70,000 Crore (Approx.)
- 4. Nirav Modi – PNB Bank Fraud: INR 14,000 Crore (Approx.)
- 5. Vijay Mallaya: INR 9,000 Crore (Approx.)
- 6. Satyam Scam: INR 14,162 Crore (Approx.)
- 7. Harshad Mehta’s Stock Market Scam: INR 5,000 Crore (Approx.)