Top 7 scams in India that were revealed in the last two decades | India is in 87th place of most corrupted countries because of Scams

December 9th, 2010| In India.

Top 7 scams in India that were revealed in the last two decades | India is in 87th place of most corrupted countries because of Scams

India is developing rapidly and corruption is following it with the same speed.  ‘Bofors’ scam was revealed in buying weapons for the army in 1986 and now 2G spectrum scam which is causing more than Rs.1.76lakh crores loss to the Indian treasury in Telecom License allocations has been revealed.  Many scams have been revealed in the last on year under the UPA government that has brought bad name to the reputation of India.  India is in the 87th position in the list of most corrupt countries and scams are not new to India.  Seven greatest scams happened in India in the last two decades are –
1. Telecom Licenses Scam: This is the biggest scam in the history of India.  Main accusation is that between 2007 and 2008, during the tenure of central telecom minister Raja, 2G spectrum licenses were allocated to telecom companies cheaper than market rates. This caused RS.1.7crore lakh loss to the nation and unqualified companies like Unitech and Swan could able to get these licenses.  Reliance has also obtained these licenses through back door methods.  CAG report has revealed these irregularities.  Supreme Court itself has questioned the Prime Minister why no action was taken against the telecom minister.  Corporate lobbyists, journalists played an important role in this scheme along with politicians.

2. Commonwealth games:  There are allegations that there was a big corruption in the commonwealth games that were held in October, 2009 by spending Rs.27 thousand crores.  CBI has recognized huge irregularities in 16 departments like construction of stadiums, buying sports material and providing accommodations to players etc and is enquiring.

3. ‘Adarsh’ scam:  Congress politicians, government higher officials and army officers acquired the land cheaply which was allotted for the wives of soldiers who died in the Kargil War.  The lands are situated on the banks of Arabian ocean in Mumbai. CBI is enquiring this scam.  Then Chief Minister of Maharashtra Ashok Chavan is facing accusations in this scam as the main culprit.

4. Bribes for loans: Main accusation in this scam is that corporate companies were given loans by paying bribes to government sector banks.  Main suspect in this scam is the ‘Money Matters Financial Services’ which arranges corporate loans by bribing the officials.  CBI has arrested 8 people on 24th of November and the scam was revealed then.  Arrested persons include higher officials in LIC Housing Finance Corporation, Central Bank of India, Punjab National Bank, Bank of India etc.  CBI is investigating 21 prominent companies regarding this scam.

5. Satyam scam: Satyam scam is the biggest scam in the corporate history of Hyderabad that brought nearly Rs.4,500 crores to the share holders.  Satyam Computers which was among top companies in India.  Mr. Ramalinga Raju, chairman, founder of Satyam computers has agreed that profits of the company were shown by falsely increasing them in January, 2009.  This scam is compared to the Enron scam in America.

6. Securities scam: This scam caused Rs.3,500 crore loss to the stock market in 1992 and shook up the country. Share prices were increased artificially in Mumbai stock markets and false transactions were created in various banks.  Politicians, government sector banks and higher officials in foreign banks were involved in this scam.  Many cases were filed against the main accused Harshad Mehta but was awarded punishment in only one case.  He died in the year 2002.

7. Bofors scam: In 1986, cannons and guns were bought from Bofors, a Sweden company for Indian army. Main accusation is that poor quality weapons were bought for bribes.  It is alleged that then Prime Minister Rajiv Gandhi was also involved in this scam.  As a result Congress faced defeat in the general elections held in 1989.  Though this case is in the courts for many years no clear verdict is given till now.