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The Saradha group ran a wide variety of collective ... FINANCIAL SCANDALS 2009 Satyam scandal 1996 CRB scam 2002 Ketan Parekh scam 2013 Saradha group ...

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1992 Harshad Mehta scam

FINANCIAL SCANDALS

2009 Satyam scandal

THAT

SHOCKED THE

MARKETS Harshad Mehta siphoned off funds amounting to ~4,000 crore from various banks to manipulate stocks in the early 1990s. The scam was exposed as the markets crashed, and banks and investors lost huge amount of money. He died in 2001

The NSEL crisis has wiped out hundreds of crores of many investors. The episode also shows how manipulation, lack of knowledge and greed can cause big losses to investors and pose a threat to the financial system. Here is a snapshot of some of the biggest scams that the country has witnessed over the years

Ramalinga Raju confessed he had cooked up the accounts of Satyam Computers and that the cash and bank balances were inflated by ~5,040 crore,after a failed attempt to acquire Maytas. He was recently released on bail. Satyam Computers has since been acquired by Tech Mahindra

2013 Saradha group scam

1996 CRB scam

2002 Ketan Parekh scam

Chain Roop Bhansali collected money from the public through mutual funds, fixed deposits and debentures. He also raised funds through non-existent companies and transferred the money to shell companies or others who invested with him. The scam came to lightwhen he could not raise more money. The scam resulted in a loss of

~1,100 crore

Ketan Parekh was involved in circular trading and stock manipulation through 19992001 in a host of companies. Like Mehta, he borrowed from banks such as Global Trust Bank and Madhavpura Mercantile Co-operative Bank, and manipulated a host of stocks popularly known as K-10 stocks. Parekh has been banned from the stock market

The Saradha group ran a wide variety of collective investment schemes that collected money from the public. The ponzi scheme collapsed and caused an estimated loss of ~4,000 crore with 1.4 million investors affected, mostly small savers. The Union government launched a multi-agency probe to investigate the scam Source: Published media reports