Which are the biggest banking scams of India?

For the past two years world is witnessing physical and mental pain. The deadly corona virus cripled the normal life of the people and it is harming the economy as well. Common people have become generous and donating to needy people without hesitation.

But some rich and cunning people hampered India's economy with their fraud and malpractices. 2 days back the CBI booked AGB Shipyard in Mumbai in connection with the biggest bank fraud till date for 22,842 crore rupees. The AGB Shipyard Company was sanctioned credit facilities from 28 banks and financial institutions. But it used those funds for other than the purpose of the loan.

The Forensic audit of the investigation by the CBI shows that from 2012 to 2017, the AGB Shipyard committed illegal activities like diversion of funds, misappropriation and criminal breach of trust.

The fraud was occurred at State Bank of India, Overseas branch, Mumbai, where the AGB Shipyard maintains accounts. And fraud took place also at commercial Finance branch of State bank of Patiala, New Delhi, State bank of Travancore, commercial branch, New Delhi.

The CBI officials said on Saturday that they have booked ABG Shipyard Ltd and its then Chairman and Managing Director Rishi Kamlesh Agarwal along with others like, then Executive Director Santhanam Muthaswamy, Directors Ashwini Kumar, Sushil Kumar Agarwal, and Ravi Vimal Nevetia, and another company ABG International Pvt Ltd for allegedly cheating the consortium of banks led by State Bank of India of over Rs 22,842 crore.

While we are witnessing this biggest bank fraud of all time, we should not forget many bank frauds took place in the past. The below mentioned are some of the biggest bank frauds took place at that time:-

• Neerav Modi Bank Scam Rs 11,400 crore) - It was called the biggest bank scam at that time. The main accused of this scam was Nirav Modi and his uncle Mehul Choksi, owner of Gitanjali Group. Both of them withdraws money from the foreign banks on the guarantee of Punjab National Bank. They fled the country.
• Vijay Malya Bank Scam (Rs 9432 crore) - Vijay Malya's King Fisher Airlines borrowed Rs 1600 crore from State Bank of India, Rs 800 crore from PNB, Rs 550 crore from Bank of Barods and rest from other financial institutions totalling the amount to 9432 crores. He is also a fugitive now.
• Rotomec Pen scam (3695 crores) - The promotor of the Rotomec pen Vikram Kothari allegedy cheated several banks for the sum of Rs 3695 crores. The CBI arrested Mr. Vikram Kothari.

There are so many other bank frauds happened in India. Some cheaters were arrested and some were settled in foreign countries. But we the common people have to pay penalties and fines for our atm card use, less balance in the account and other small mistakes which we do. That is the reality.