7 Financial frauds in India under BJP government

Rahul Gandhi
Dec 1, 2018 · 6 min read
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In the last few years, the banking system of out nations has experienced some major downfall. The financial architecture which was once considered the most sound banking system in the world is getting mocked by a lot of people now due to the series of frauds that came into light recently in Indian Banking system. The frauds of thousand of millions by businessmen like Vijay Malya and Nirav Modi has wrecked the strong and corruption free image of Indian Banks. The banking system has once amazed the people during the financial crisis in 2007–08 by standing strong and providing immunity to India citizens when the leading banks throughout the world have collapsed. Similarly, this same banking system has amazed people again by becoming a victim of some of the greatest financial frauds in the history of India.

An allegation made by congress party recently against BJP to assist financial frauds in India does not appear completely ambiguous. The next 4 years of Modi governance has unravelled a series of financial frauds in banks which cost the nation in billions. In a recent meeting, Congress had accused that the nation has faced a loss of over Rs 54,317 crore in the bank frauds and yet the culprits associated with these frauds successfully managed to flee the country with immunity from BJP Government.

Congress party communications in-charge Randeep Surjewala has alleged that BJP has a new mantra of the fraudster that is fleece, flee and fly under the Modi-led government’s watch. He also added that the cases of loan frauds, bank loot, cheating and malfeasance has increased by many folds and swindling of common people and banks are getting unraveled every day.

As per an RTI filed on February 9, it is found that frauds and scams of Rs 19,317 crore were reported in Mumbai, the economic capital of nation in last 3 years only the BJP government’s watch. The reply gained for the RTI unravels that scams worth Rs 5,560.66 crore were reported in 2015, whereas scams of worth Rs 4,273.87 crore were reported in 2016. The amount of money drastically increased in year 2017 when scams of worth Rs 9,838.66 crore were recorded.

The more disturbing figure in this scenario is that 184 people who were accused of these frauds and scams have managed to escape the nation before any legal inquiry takes place against them. These statistics justifies that Modi Government has become instrumental in giving one-way ticket to cheat and scoot the fraudsters.

Narendra Modi’s image has emerged as a supporter of alleged fraudsters shortly after the $2 billion bank fraud came in light in mid of 2018 by diamond merchant Nirav Modi at India’s state-owned Punjab National Bank SCAM.
As the investigation continues for the biggest bank fraud in history of India, the by-election results show the reputation of BJP is on verge of breaking due to repeated bank frauds which hurt the Indian economy badly.

Below mention is the year wise list of some biggest bank frauds cases in India which occurred under the rule of BJP and raised several questions about the credibility of the party:

2011: An investigation done by CBI revealed that Bank of Maharashtra, Oriental Bank of Commerce, IDBI and some other bank executives opened near about 10,000 fake accounts which facilitate the unaccounted transfer of Rs 1.5 billion loans to fraud parties.

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As soon as the BJP came into power, the financial frauds in India reached to alarming heights. In year 2014, Maharashtra police filed nine FIRs against numerous public sectors in reference to fixed deposit fraud of about Rs 7 billion. Later this year only, Electrotherm India is charged with committing a fraud to defaulting Rs 4.36 billion payment against loan to the Central Bank.

Continuing the series of bank fraud cases in India just after the inception of BJP, a Kolkata-based industrialist Bipin Vohra committed a fraud against Central Bank of India by receiving Rs 14 billion loan with the help of forged documents.

Another scam that came into light in the similar year was the bribe-for-loan which revolves around ex-chairman and MD of Syndicate Bank SK Jain who sanctioned Rs 80 billion.

By the end of the year, Union Bank of India, SBI and PNB declared Vijay Malya as a wilful defaulter due to non payment of his outstanding loans.


In year 2015, Jain Infraprojects committed a fraud of over Rs two billion from Central bank of India. This year only, several executives from different banks were found involved in a foreign exchange scam of Rs 60 Billion through a phony Hong Kong corporation.


One of the biggest bank fraud case registered in India involves opening of almost 380 fake accounts by four people in Syndicate bank committing a fraud of Rs 10 billion using fake cheques, LoUs and insurance policies.


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Mallya’s debt owing to non functional Kingfisher Airlines managed to raise Rs 9.5 billion to IDBI and some other banks. Before the CBI prepares the chargesheet against him, he successfully managed to flee the country in 2016.

Later this year, Winsome Diamonds came under the radar after CBI charger 6 cases against the group and its associated companies. With these charges, Winsome Diamonds become India’s second largest corporate defaulter. The gaps in the payment of loan were first discovered in 2014 by Jatin Mehta’s Winsome Diamonds. The company failed to repay its debts since mid-2013 and was later declared a wilful defaulter by banks with over a recorder fraud of Rs 7000 crore.

In 2017, Nilesh Parekh, a business tycoon from Kolkata was arrested by CBI for creating a fraud of Rs 22.23 billion to at least 20 banks. Nilesh was acting as a promoter of Shree Ganesh Jewellery House. He was charged with defrauding banks by diverting loan money through shell companies in Singapore, Hong Kong and UAE.


The recent fraud committed by Nirav Modi is the latest failure by BJP government. A supporter of BJP, Nirav Modi committed the fraud of Rs 11,450 crore from fresh bank. Charges were filed against the Diamond king but no arrest or recovery of money was done. It came into light recently that the Nirav Modi’s diamond company got at least 150 Letter of Undertakings (LoUs) which makes it possible for the Group to commit loan fraud against Punjab National Bank and many other banks. According to a report published in Indian Express, Nirav Modi committed a fraud Rs 11,450 crore from PNB only followed by additional fraud of Rs 3,000 crore from 17 different banks.

These are the leading cases of financial frauds in India which take place under the governance of Prime Minister Narendra Modi. Several charges were registered against these culprits yet the government has failed to make a single arrest and recover any money that has been frequently taken from the banks. The level of corruption and frauds has significantly in last four years of BJP rule in the nation.

Read More 5 thing to learn from Rahul Gandhi

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