The names of major business tycoons like Nirav Modi, Mehul Choksi, Vikram Kothari and Vijay Mallya are making rounds these days after blind sighting the Public Banking Sector. But these are not the only names involved with the fraudulent cases.
According to a survey by IIM Bengaluru, a total of Rs 22,743 crore has been taken away by deceit since 2012 to 2016 and if we include the amount of the recent cheats, then the sum hits to a shocking Rs 36,000 crore.
Union Minister Shankar Prasad had told Lok Sabha that till 21st December of last year, a total of 25,600 cases of cheats and frauds came forward in which the banks were cheated by approximately Rs. 178 Billion.
According to data, there were around 455 cases of fraud in ICICI bank, 429 in State Bank, 244 in Standard Chartered Bank and 237 in HDFC bank during the initial nine months of the fiscal year 2017.
Whereas during April 2016 to December 2016, there were more than 3500 cases registered.
Bank employees were also found to be a part of the whole scam. In 2011, CBI declared that the employees of Bank of Maharashtra, Oriental Bank of Commerce and IBDI bank opened near 10 thousand fake accounts and sanctioned loans worth around Rs. 15,000 crore.
According to the records, Mumbai Police registered 9 FIRs related to the cases of banking frauds in 2014.
In the same year, Electrotherm India Ltd. failed to pay Rs. 436 crores of loan to the Central Bank of Inda.
Kolkata’s Business tycoon Bipin Vohra also took a loan of Rs. 140 crores from the Central Bank of India by deceit.
According to a survey by IIM Bengaluru, the hierarchy of Jain Infra Project cheated the Central Bank of India by Rs. 200 crores and the surprising fact is that few bank employees were found guilty of creating a fake Hong Kong corporation. These were the people who took around Rs. 600 crores from different banks.
Few Studies state that 2016 Syndicate Bank Fraud Case was amongst the largest, in which 4 people opened around 380 accounts, and with the help of Fake chequebooks, LIC policies and Letter of Understanding (LoU), they took around Rs. 10 Billion from the bank.
While talking about Letter of Understanding (LoU), renowned Economist Dr. Vijay Kaul said that Lou is to any company only after checking the credit score and every businessman including Nirav Modi was given LoU by the employees of the bank.
The only difference is that the employees were heavily bribed by the Business Tycoons and the result is clear in front of us.
He even mentioned that the Banking sector is run by trust and honesty but few people have cheated for their own benefits.
The first ever major bank fraud case came forward when the owner of Kingfisher Vijay Mallya cheated IDBI bank for about Rs. 9500 crores and fled the country.
This year another name of a firm Winsom Diamonds came forward. The Diamonds company owes around Rs. 7,000 crores. Six FIRs were registered by CBI against the company.
Apart from this, Deccan Chronicle owes Rs 11.61 crores. In 2017, Kolkata’s Nilesh Parekh was arrested for defrauding around 20 banks with the worth of Rs 22.23 billion.
Skip to 2018 and Nirav Modi is accused of fleeing from India after taking loans of Rs. 11,450 crores from 18 banks including Punjab National Bank. Modi was given 150 LoU by PNB.
When asked about how the people of India are affected by the constant running away by the fraud businessmen, he stated that the major chunk of money is deposited in the government banks and it has the support of the government. Hence, they are not affected.