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Last Updated : Oct 18, 2018 10:01 PM IST | Source: Moneycontrol.com

Big bank scams: Frauds that shook the Indian financial sector

There has been a spurt in bank scams and arrests by authorities in India. Here is a list of the biggest frauds in the Indian banking space.

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Rs 139 crore | 2014 | Kolkata-based industrialist Bipin Vohra and others were booked by the CBI for allegedly cheating Central Bank of India by obtaining the loan with forged documents. (Image: Wikimedia Commons)
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Rs 139 crore | 2014 | Kolkata-based industrialist Bipin Vohra and others were booked by the CBI for allegedly cheating Central Bank of India by obtaining the loan with forged documents. (Image: Wikimedia Commons)

Rs 150 crore | 2011 | Executives of Bank of Maharashtra, Oriental Bank of Commerce and IDBI created about 10,000 fictitious accounts and transferred loans to these accounts, a CBI investigation had found. (Image: Wikimedia Commons)
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Rs 150 crore | 2011 | Executives of Bank of Maharashtra, Oriental Bank of Commerce and IDBI created about 10,000 fictitious accounts and transferred loans to these accounts, a CBI investigation had found. (Image: Wikimedia Commons)

Rs 212 crore | 2015 | The CBI booked former deputy general manager of Central Bank of India and three directors of Jain Infraprojects Ltd — MK Jain, Rekha Jain and Sunil Kumar Dangi — for allegedly defrauding the bank. (Image: Wikimedia Commons)
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Rs 212 crore | 2015 | The CBI booked former deputy general manager of Central Bank of India and three directors of Jain Infraprojects Ltd — MK Jain, Rekha Jain and Sunil Kumar Dangi — for allegedly defrauding the bank. (Image: Wikimedia Commons)

Rs 290 crore | 2017 | CBI arrested the promoters of Abhijeet Group — Manoj Jayaswal and Abhishek Jayaswal — and TL Pai, a former DGM of Canara Bank, for allegedly defrauding Canara and Vijaya Banks. (Image: Wikimedia Commons)
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Rs 290 crore | 2017 | CBI arrested the promoters of Abhijeet Group — Manoj Jayaswal and Abhishek Jayaswal — and TL Pai, a former DGM of Canara Bank, for allegedly defrauding Canara and Vijaya Banks. (Image: Wikimedia Commons)

Rs 437 crore | 2014 | Officials of Ahmedabad-based Electrotherm India allegedly cheated Central Bank of India in connivance with bank employees. CBI booked the company directors in the case. (Image: PTI)
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Rs 437 crore | 2014 | Officials of Ahmedabad-based Electrotherm India allegedly cheated Central Bank of India in connivance with bank employees. CBI booked the company directors in the case. (Image: PTI)

Rs 836 crore | 2017 | CBI arrested Padmakar Deshpande, a Bank of Maharashtra officer from Pune, along with the director of Siddhi Vinayak Logistics Limited, a private logistics company from Surat, in connection with an alleged Rs 836-crore fraud case. (Wikimedia Commons)
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Rs 836 crore | 2017 | CBI arrested Padmakar Deshpande, a Bank of Maharashtra officer from Pune, along with the director of Siddhi Vinayak Logistics Limited, a private logistics company from Surat, in connection with an alleged Rs 836-crore fraud case. (Wikimedia Commons)

RS 1,000 crore | 2016 | The CBI booked four people including Chief Manager of Syndicate Bank in an alleged scam in which the accused used fake cheques, letters of credit and LIC policies to withdraw money. (Wikimedia Commons)
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RS 1,000 crore | 2016 | The CBI booked four people including Chief Manager of Syndicate Bank in an alleged scam in which the accused used fake cheques, letters of credit and LIC policies to withdraw money. (Wikimedia Commons)

Rs 6,000 crore | 2015 | This was a money laundering/fund siphoning scam. Scamsters exploited loopholes in remittance rules to bring back illegal money parked abroad disguised as export revenues. They also transferred money abroad claiming that to be advance payment to overseas vendors. Employees of various banks including Oriental Bank of Commerce and Bank of Baroda were allegedly party to the scam. (Image: Wikimedia Commons)
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Rs 6,000 crore | 2015 | This was a money laundering/fund siphoning scam. Scamsters exploited loopholes in remittance rules to bring back illegal money parked abroad disguised as export revenues. They also transferred money abroad claiming that to be advance payment to overseas vendors. Employees of various banks including Oriental Bank of Commerce and Bank of Baroda were allegedly party to the scam. (Image: Wikimedia Commons)

Rs 8,000 crore | 2014 | Dubbed the bribe-for-loan scam, CBI found a well-oiled nexus between top bank officials and companies. Bank chiefs were bribed by companies wanting loans. Ex-chairman and MD of Syndicate Bank, SK Jain was among those arrested. (Image: Wikimedia Commons)
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Rs 8,000 crore | 2014 | Dubbed the bribe-for-loan scam, CBI found a well-oiled nexus between top bank officials and companies. Bank chiefs were bribed by companies wanting loans. Ex-chairman and MD of Syndicate Bank, SK Jain was among those arrested. (Image: Wikimedia Commons)

Rs 9,000 crore | 2017 | In one of the most publicised alleged frauds in India's banking history, liquor baron Vijay Mallya was accused of defrauding a consortium of lenders. He is currently in the UK and Indian authorities are trying to extradite him to India. (Image: Wikimedia Commons)
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Rs 9,000 crore | 2017 | In one of the most publicised alleged frauds in India's banking history, liquor baron Vijay Mallya was accused of defrauding a consortium of lenders. He is currently in the UK and Indian authorities are trying to extradite him to India. (Image: Wikimedia Commons)

Rs 12,000 crore | 2018 | Kolkata–based gold trader Nilesh Parekh was arrested by the Directorate of Revenue Intelligence sleuths for allegedly siphoning off 1,700 kg of imported duty-free gold and defrauding 25 banks. He was earlier arrested by CBI for allegedly siphoning off bank loans worth Rs 2,672 crore through hawala channels to dummy companies in Singapore, Dubai and Hong Kong. (Image: Reuters)
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Rs 12,000 crore | 2018 | Kolkata–based gold trader Nilesh Parekh was arrested by the Directorate of Revenue Intelligence sleuths for allegedly siphoning off 1,700 kg of imported duty-free gold and defrauding 25 banks. He was earlier arrested by CBI for allegedly siphoning off bank loans worth Rs 2,672 crore through hawala channels to dummy companies in Singapore, Dubai and Hong Kong. (Image: Reuters)

Rs 14,000 crore | 2018 | Diamond trader Nirav Modi and his uncle Mehul Choksi were accused of defrauding Punjab National Bank in one of the biggest financial frauds in India. Both accused fled India before they could be arrested. (Image: PTI) Note - This slideshow has been updated.
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Rs 14,000 crore | 2018 | Diamond trader Nirav Modi and his uncle Mehul Choksi were accused of defrauding Punjab National Bank in one of the biggest financial frauds in India. Both accused fled India before they could be arrested. (Image: PTI) Note - This slideshow has been updated.

First Published on Sep 29, 2018 04:28 pm
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