India's top Five accounting scandals (till the recent Satyam issue)
madhwesh acharya
1. Company Involved (Year of Scam Expose'): CRB Capital Markets Limited (1996)
Amount Involved: Rs 1200 crore
Type of Fraud: Chairman Chain Roop Bhansali, was accused of siphoning
off Rs 12 billion in the CRB scam. CRB was accused of using its SBI
accounts to siphon off bank funds, claiming it was encashing interest
warrants and refund warrants.
Impact: The Unit Trust of India and the Gujarat government also
incurred losses.
2. Company Involved (Year of Scam Expose'): ITC – Chitalia's Fera
Violation(1996)
Amount Involved: FERA violations were estimated at around $80 million.
Type of Fraud: In June 1996, ED started FERA investigation into the
export transactions between ITC and the Chitalia group of companies
(EST Fibres) during 1990- 1995.
Impact: The Chitalias and several directors of the company including
ITC Chairman KL Chugh were detained but later released on bail. ITC in
turn slapped a suit on Chitalias for $15 million, Chitalias in turn
sued ITC for $55 million, which they claimed ITC owed them.
3. Company Involved (Year of Scam Expose'): Home Trade (2002)
Amount Involved: Rs 6000 cr
Type of Fraud: Eight co-operative banks, like Valsad People's
Co-operative Bank and Navsari Co-operative Bank from South Gujarat,
collectively lost over Rs 80 crore due to bad investments by the Home
Trade. It was also linked to Rs 82 lakh forgery in a central
government undertaking EPF scheme.
Impact: Home Trade chairman Sanjay Agarwal and Director Ketan Seth
were arrested.
4. Company Involved (Year of Scam Expose'): DSQ Software (2003)
Amount Involved: Rs.595 crore
Type of Fraud: Dinesh Dalmia's Company DSQ Software was accused of
dubious acquisitions and biased allotments made in the year 2000 &
2001.
Impact: Dalmia was arrested in 2006 and is currently serving jail sentence.
5. Company Involved (Year of Scam Expose'): Nagarjuna Finance (2003)
Amount Involved: Rs 98.37 crore
Type of Fraud: Executives of Nagarjuna Finance, an promoted by KS
Raju, was accused of failure to return about Rs 100 crore to
depositors in 1997-98.
Impact: NFL could repay only Rs 54.8 crore as at December 2003.
Information available at:
http://economictimes.indiatimes.com/quickiearticleshow/3959739.cms
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Regards,
Madhwesh K
Company Secretary
Bangalore
9945399584