In the Supreme Court on Wednesday, the Reserve Bank of India (RBI) stated that individual bank managements are responsible for large-value loan sanctions, as well as their post-sanction management and monitoring. The RBI refused to accept any responsibility for previous multi-crore bank frauds. The RBI informed a Bench headed by Justice B.R. Gavai that it is not involved in their day-to-day affairs. According to Solicitor General Tushar Mehta, the investigation into these scams was already under way and would include anyone who committed the alleged offense. Countering a petition filed by former parliamentarian Subramanian Swamy and advocate Satyapaul Sabharwal for a CBI investigation into RBI officials' "alleged connivance" in ten "scams" such as the Kingfisher scam, the Bank of Maharashtra scam, the Uttar Pradesh-based private sugar organization scam, the Nirav Modi/Punjab National Bank scam, the Rotomac Global Private Limited scam, the Lakshmi Vilas Bank scam, the RBI and the CBI found themselves on the same side.
The RBI has been a consistent watchdog monitoring and regulating several scams in India that have included financial crimes both big and small. Some of them include:
Harshad Mehta Scam: This securities scam, which took place in 1992, was one of the first major financial scams in India. It involved the manipulation of bank receipts and caused a loss of over ₹4,000 crore (about $600 million at the time).
Ketan Parekh Scam: This securities scam, which took place in 2001, involved the manipulation of stock prices and caused a loss of over ₹2,000 crore (about $300 million at the time).
Satyam Scandal: This corporate scandal, which came to light in 2009, involved the manipulation of the IT company's financial statements and caused a loss of over ₹14,000 crore (about $2 billion at the time).
NSEL Scam: This commodities exchange scam, which took place in 2013, involved the default on payment of over ₹5,600 crore (about $800 million at the time).
Rose Valley Group Scam: This chit fund scam, which came to light in 2014, involved the collection of money from investors with the promise of high returns and caused a loss of over ₹17,000 crore (about $2.5 billion at the time).
Saradha Group Scam: This chit fund scam, which came to light in 2013, involved the collection of money from investors with the promise of high returns and caused a loss of over ₹20,000 crore (about $3 billion at the time).
Demonetization Scam: This scam, which took place in 2016, involved the manipulation of the government's demonetization policy and caused a loss of over ₹1 lakh crore (about $14 billion at the time).
Punjab National Bank Scam: This banking scam, which came to light in 2018, involved the issuance of fraudulent letters of undertaking and caused a loss of over ₹13,000 crore (about $1.8 billion at the time).
Rotomac Scam: This bank loan scam, which came to light in 2018, involved the fraudulently obtaining of loans and caused a loss of over ₹3,700 crore (about $500 million at the time).
IL&FS Scam: This corporate scam, which came to light in 2018, involved the manipulation of the infrastructure company's financial statements and caused a loss of over ₹91,000 crore (about $12.5 billion at the time).
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