5 Biggest Corporate Frauds and Their Regulation In India

5 Biggest Corporate Frauds and Their Regulation In India

As much there is advancement in technology there is an increment in corporate crimes. When any fraud is committed it not only affects them personally but it damages the whole economy. In India, a large number of scams have been committed in the corporate sector in the last ten years.  In near future, according to a survey of 58%, CXOs believe that corporate frauds will rise over the next two years. To get the best and low-cost Law course, mock test paper any law-related information can visit Law Planet.

In India, if we examine the reasons for fraud, then in most of the cases we will find that there are negligence and poor networking of the banks. In India, till now banks are not been that much efficient to cope with fraud. Due to lack of technical availability frauds are committed. There is no redefined regulatory system to cope with corporate fraud. When any fraud is committed all began to play the blame game. No one is held liable and takes responsibility.

The same case is with companies and entities. In companies, frauds are committed by higher management by manipulating the actual status of the company. They basically misappropriate the prospectus, account books, debts taken, etc. Investors do have not that much knowledge of finance and management misuse this to commit fraud.

In India there are many laws that deal with fraud:

  • Companies Act, 2013
  • Indian penal code,1860
  • Indian Contract, Act, 1872
  • Information Technology Act
  • Prevention of Corruption Act, 2013

Some of the biggest scams in India which shook the national economy from its core:

  1. Vijay Mallya- Rs. 9000 Crore: This scam was done by the owner of kingfisher airlines. He allegedly owes a Rs 9000 crore loan and has been recently declared a fugitive.
  2. 2G spectrum scam- Rs. 1,76,000 Crore: In 2008, this scam was done by the former telecom minister A. Raja himself. There was Rs. 1.76 trillion difference between money collected and money mandated to be collected for allocation of license that was used to create 2G spectrum subscriptions.
  3. Commonwealth Games Scam- Rs. 70,000 Crore: In 2010, commonwealth game was organized in India and this scam was done by Suresh Kalmadi who was the chairman of the commonwealth games in 2010. In this athletes were not provided proper accommodation instead of funds had been provided by the authorities.
  4. Satyam scam- Rs. 14,000 Crore: This was one of the biggest corporate scams in India which shook up the economy very badly. This is also known as Enron Scandal and it revolves around B Ramalinga and his Satyam computer services Ltd. Under this, the accounts of the company were manipulated by Rs. 14000 crores in front of the board of exchange, investors, and other stakeholders.
  5. Nirav Modi PNB Bank fraud- Rs. 1,1,400 Crore: This was done by diamantaires Nirav Modi, In 2018, PNB filed a case with CBI against Nirav Modi for obtaining letters of undertaking from PNB without paying up the margin value against the loan. This meant that if they would fail to pay the loan PNB will be liable for it.

Like these, there are many other corporate scams that happen day to day but above were the biggest frauds committed which changes the whole economy. Visit to know about “Keshvanand Bharti Case”.


India is a developing country and till now it is not that advance both technically and financially. Day to day a new fraud happens and it affects the economy. So now it is mandatory to make these areas technically advance and keep dogwatches on each and every activity in the corporate sector. As SEBI is performing its duty well but it needs to be more conscious to cope with these kinds of corporate frauds.

Leave a Reply

Your email address will not be published. Required fields are marked *