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From Harshad Mehta to Vijay Mallya, a look at India’s biggest scammers

Amid the ongoing Adani row, let’s take a look at India’s biggest scams in history.

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Vijay Mallya

Adani Group lost more than Rs 5,29,865 crore in the last week after investors backed out as the US-based Hindenburg Research released their investigative report and accused Gautam Adani of fraud and stock manipulation.

Earlier, there have been multiple financial scams that shook the nation. Amid the ongoing Adani row, let’s take a look at India’s biggest scams in history.

Harshad Mehta

Harshad Mehta, a registered and well-known broker carried out India’s biggest scam in the stock market in 1992. Mehta was accused of manipulating the Bombay Stock Exchange (BSE) with his partners by taking advantage of the loopholes in the banking system, reports said.

He created a cycle of fraud with banks including the State Bank of India and the National Housing Bank.

Reports also say Mehta conspired with bank employees and got fake bank receipts issued and used those bank receipts to get other banks to lend him money. The amount was further put into the stock market to spike share prices by up to 4,400 per cent and Mehta then sold these shares at a staggering profit. After this, the principal amount was returned to the banks.

Referred to as the Big Bull of Dalal Street, Mehta defrauded the banks of almost Rs 4,000 crore. On February 28, 1992, the tax department carried out a raid and seized several documents and share certificates. On June 4, 1992, the Central Bureau of Investigation conducted a search on the Mehtas.

Reports say the tax return filed by Harshad Mehta for the assessment year 1992-93 was rejected and he was jailed in 1992.

Further, Mehta was convicted by both the Supreme Court and the Bombay High Court and was charged with 74 criminal offences. His legal battles continued till 2001 when he died due to a cardiac arrest in jail at 47.

B Ramalinga Raju

The scam carried out by B Ramalinga Raju is popular as Satyam Scam 2009. The fraud involved corporate governance and fraudulent auditing practices allegedly colluding with the auditors and CAs. Raju’s company Satyam Computer Services Ltd. was accused of misrepresenting its accounts to its stock exchanges, board, regulators, investors, and all other stakeholders.

After the scam came to light, the company admitted that they misrepresented, manipulated and falsified their accounts of over Rs 14,000 crore. Reports say Raju raised the cash to purchase several thousands of acres of land across Andhra Pradesh for a realty marker.

Nirav Modi

Nirav Modi along with his uncle Mehul Choksi pulled out one of the biggest bank frauds in India. The scam took place through Punjab National Bank Brady House Brand and also involved two senior PNB officials with Modi and Choksi.

In 2018, the PNB registered a case with CBI and accused Nirav Modi and his companies of obtaining Letters of Undertaking from the PNB without paying up the margin amount against loans. Additionally, the bank also submitted a fraud report to the Reserve Bank of India.

The same year Nirav Modi left India to evade the law days before a case was filed against him and others involved in the case.

Vijay Mallya

In 2016, the Kingfisher owner fled the country after he was accused of fraud and money laundering. Reports say Mallya owes more than Rs 9,000 crore to multiple banks he took loans from for his personal agenda and to save his Kingfisher airlines.

He took refuge in the United Kingdom and was also declared a fugitive economic offender at the request of the Enforcement Directorate under the Fugitive Economic Offenders Act.

Mallya left the country on March 2, 2016, after being warned of an arrest. However, he claimed that his trip to London was a part of his business pattern and lifestyle. A warrant was petitioned under Mallya for the crimes under the Money Laundering Prevention Act, of 2022. Following this, he was arrested in London by the Metropolitan Police on an international warrant.

However, he was granted bail worth $650,005,40,87,856 and was asked to hand over his documents, reports said.

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PM Narendra Modi slams Congress over Sam Pitroda’s inheritance tax remarks, accuses Congress of intending to impose higher taxes

PM Modi was speaking at a public meeting in Chhattisgarh’s Surguja, where he alleged that the Congress wants to fill its own coffers by imposing ever higher taxes and not allowing people to pass on their hard-earned wealth to their children.

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Prime Minister Narendra Modi on Wednesday launched a scathing attack on Congress after Sam Pitroda advocated for a US-style inheritance tax amid the ongoing debate over wealth redistribution. The comments have further fuelled an already-raging controversy over Rahul Gandhi’s promise to conduct a wealth survey if the Congress won the Lok Sabha election.

PM Modi was speaking at a public meeting in Chhattisgarh’s Surguja, where he alleged that the Congress wants to fill its own coffers by imposing ever higher taxes and not allowing people to pass on their hard-earned wealth to their children.

The Prime minister said the advisor (Sam Pitroda) of the prince and the royal family had said some time ago that more taxes should be imposed on the middle class.  He said the Congress party says that it will impose an inheritance tax, and it will also impose tax on the inheritance received from parents. PM Modi added the children will not get the wealth that their parents accumulate through their hard work, rather the Congress party will snatch it away from them.

PM Modi said Pitroda’s remarks have exposed the dangerous intentions of the Congress.  He took a veiled jibe at the Congress and said the party has only one mantra – to loot people zindagi ke sath bhi, zindagi ke baad bhi (in life and even after death).

 The prime minister did not take any names and targeted the Gandhi family and said, those people who considered the entire Congress party as their ancestral property and handed it over to their children, now do not want Indians to pass on their property to their younger generations.

Indian Overseas Congress chairman Sam Pitroda while talking to the media backed his party’s stand on redistribution of wealth and called for a policy for the same while citing the concept of inheritance tax prevailing in some American states.

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Ramdev, Balkrishna publish bigger apology in newspapers after Supreme Court’s rap

In the apology published, Ramdev and Balkrishna said they unconditionally apologise in their individual capacity as well as on behalf of Patanjali Ayurved for the non-compliance or disobedience of directions/orders of the Supreme Court of India

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Yoga guru Ramdev and his aide Acharya Balkrishna on Wednesday published a fresh bigger apology in leading newspapers for misleading advertisements of Patanjali’s medicinal products. This time, the apology was bigger in size after the Supreme Court pulled up Patanjali’s Ramdev and Balkrishna for not prominently displaying it earlier.

In the apology published, Ramdev and Balkrishna said they unconditionally apologise in their individual capacity as well as on behalf of Patanjali Ayurved for the non-compliance or disobedience of directions/orders of the Supreme Court of India. The apology said that they earnestly apologise for the mistake made in publishing their advertisements and it is their whole-hearted commitment that such mistakes will not be made again in the future.

During a hearing of the contempt proceedings related to the misleading ads case on Tuesday, the Supreme Court had asked Ramdev and Balkrishna if the size of the apology published in newspapers by Patanjali was similar to full-page advertisements for its products.

Ramdev and Balkrishna had told the Supreme Court Justices Hima Kohli and Ahsanuddin Amanullah that they issued unqualified public apology in as many as 67 newspapers over the issue of misleading ads and they were willing to publish additional apologies for expressing their mistake. The duo said that the cost of the advertisements is Rs 10 lakh.

The Supreme Court bench asked why the apology had been published after one week, just ahead of the case hearing. Justice Kohli also asked if the size of the apology published was the same size as their advertisements? The court also ordered Patanjali to collate the ads and submit them before the Supreme Court bench.

The bench further added that the size of the apologies should not be enlarged and should be supplied to them.  The Supreme Court bench wanted to see the actual size. The bench added that they want to see that when they issue an ad it does not mean they have to see it by a microscope.

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2024 Lok Sabha Elections

Rahul Gandhi clarifies on wealth survey remark, says aim is to identify injustice

Gandhi further added that everyone should look at Prime Minister Narendra Modi’s reaction and said that the moment he said let’s test how much injustice has been done the BJP started saying that this is an attempt to break down the country.

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Congress leader Rahul Gandhi on Wednesday took a U-turn on his wealth survey remark and said he only wanted to find out the amount of injustice the nation was facing. Rahul Gandhi was addressing Congress’s Social Justice Conference at Delhi’s Jawahar Bhawan where he clarified that he has not said Congress will take action yet. He said   that he was just saying that they will find out how much injustice has been done.

Gandhi further added that everyone should look at Prime Minister Narendra Modi’s reaction and said that the moment he said let’s test how much injustice has been done the BJP started saying that this is an attempt to break down the country. The former Congress chief said through the X-ray (wealth survey), the Congress will get to know the root cause of problem.

Gandhi said it is his life’s mission to ensure justice for the 90 % of the population against whom injustice has been done. He alleged Injustice is being done to 90 percent of Indians and the moment he called for checking this injustice, PM Modi and the BJP started attacking him. Gandhi further added that as soon as the INDIA Bloc will form its government the first thing that would be done is caste census.

On April 7, Rahul Gandhi said Congress, if voted to power, would conduct a financial and institutional survey to ascertain the distribution of wealth among the people in the country. Rahul Gandhi was addressing a public rally in Hyderabad after releasing the Congress’s manifesto where he said the survey will be conducted apart from a nationwide caste census that the party has promised if voted to power.

The former Congress chief also spoke about the Ram Mandir inauguration, and said, not a single Dalit, or a tribal was seen at the temple, or during the inauguration of the new Parliament building. He said 90% of the population understands this.

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