3 major Scams in india

NSEL Scam

Money from investors were siphoned off as the most of the underlying commodities did not exist and the buying and the selling of commodities was being only conducted only on paper.

Investors were attracted by offering fixed returns on paired contracts in commodities.

And it was lately, found out the stocks were missing.

The NSEL is a company promoted by Financial Technologies India Ltd and the NAFE. Jignesh Shah along with Shreekant Javalgekar were accused of the scam.

Estimated Size: Rs 5,600 crore

Central Figure: Jignesh Shah

Discovered: 2013

Modus Operandi: Investors were wooed by offering fixed returns on paired contracts with agri and industrial commodities as underlying. the stocks were missing and money was allegedly siphoned by so-called borrowers

Harshad Mehta Case

He was known to have fooled many investors by taking advantage of loop holes in the system.

Harshad and his associates initiated a securities scam by diverting funds of about Rs 5,000 crore from the banks to stockbrokers between April 1991 to May 1992.

After the scam was exposed, the stock markets crashed and Mehta was arrested and banned from trading in the stock markets.

Conviction - sentenced 5 years rigorous imprisonment and a fine of 25000.

Ketan Parekh Scam

Following the footsteps of Mehta, Ketan Parekh had bigger plans.

He conned banks and exchanges like the Allahabad Stock Exchange and the Calcutta Stock Exchange, and bought shares in fictitious names to manipulate the share prices in companies.

Ketan was a chartered accountant who used to run a family business, named NH Securities.Estimated Size: Rs 800 crore

Central Figure: Ketan Parekh

Discovered: 2001

Modus Operandi: Circular trading in selected stocks via borrowed money from banks to manipulate share prices

Subrata Roy Scam

Subrata Roy in the name Sahara Housing Bonds, which were issued to many investors without following Sebi regulations and any investor protection measures mentioned therein.

The case is still on and one has to wait for the outcome.

CRB Scam

Estimated Size: Rs 1,200 crore

Central Figure: CR Bhansali

Discovered: 1996

Modus Operandi: Raised public money through FDs, MFs and debentures via nonexistent firms and invested them in stocks for personal gains

Satyam Scam

Estimated Size: Rs 14,162 crore

Central Figure: Ramalinga Raju

Discovered: 2009

Modus Operandi: The top management of the software company cooked up accounts to show inflated sales, profits and margins from 2003 to 2008.

Sahara Housing Bonds

Estimated Size: Rs 24,029 crore

Central Figure: Subrata Roy

Discovered: 2010

Modus Operandi: Bonds issued to 29.6 million investors without following Sebi regulations and investor protection measures mentioned therein

Speak Asia

Estimated Size: Rs 2,200 crore

Central Figure: Ram Sumiran Pal

Discovered: 2012

Modus Operandi: Investors were asked to subscribe to an e-magazine for a certain sum, after which they became eligible to answer surveys and got paid for each survey.

Saradha Scam

Estimated Size: Rs 10,000 croreCentral Figure: Sudipta SenDiscovered: 2013Modus Operandi: Ran multiple investment schemes collecting money from nearly 1.4 million investors in West Bengal and Odisha