As per the RBI data, India has witnessed bank frauds worth Rs. 2.05 trillion in the last 11 years. With over 6,800 cases of bank frauds reported only in the year 2018-2019 involving an amount of Rs.71,500, bank frauds have become a nationwide issue.
Where the country is dreaming of becoming 5 trillion dollar economy in the coming 5 years, some of its well-known, influential and successful businessmen have hampered this process with their financial scams.
Here are the top 5 major bank frauds of recent time:
The Indian businessman and former Member of Parliament is wanted for a bank fraud of Rs. 9000 crores. Mallya has been living in UK now for more than a year and is often seen making appliances during cricket matches. Indian authorities have been trying for his extradition.
Diamond merchant, Nirav Modi and his uncle Mehul Choksi allegedly siphoned off Rs.11,300 crore from PNB. While both of the accused were successful in fleeing the country, Modi was arrested in England a few weeks back. As for Chowksi, he is said to be living in the Caribbean and is said to now be a citizen of Antigua and Barbuda.
Nitin Sandesara, Chetan Sandesara and Deepti Sandesara, the main promoters of the Sterling Biotech Ltd are known to have allegedly cheated on the Indian banks. In a case registered by the Enforcement Directorate in October 2017, the company and its promoter owed the bank Rs. 5,383 crores which was revised to Rs. 14,500 crores after investigation as their overseas companies had also taken loan of Rs. 9,000 crores as well.
Kanpur based company Rotomac allegedly found wanting the case of Rs.3,700 crore fraud. The ED and the CBI had been reportedly probing directors of Rotomac group for misusing the credit sanctioned by Bank of Baroda. The investigation agency has also filed case against the director of the group, Rahul Kothari and Vikram Kothari.
As recent as now, PNB has reported a fraud of Rs.3,805.15 crore by the Bhushan Power and Steel Ltd. The fraud has been been done by both domestic as well as foreign exposures of the bank. While the Chandigarh branch reported a fraud of Rs. 3,191.51 crore, the Dubai and Honk Kong branch reported a fraud of Rs. 345.74 crore and Rs. 267.9 crore respectively.