1) ABG Shipyard Ltd was founded in 1985 in Mumbai and grew to become one of India's largest privately owned shipbuilding firms, operating shipyards in multiple cities.
2) Between 2005-2010, banks continued lending generously to ABG despite signs of trouble, and the company was impacted by the 2008 global financial crisis.
3) In 2019, a forensic audit found evidence that ABG had defrauded 28 banks of Rs. 22,842 crore between 2012-2017 through financial statement manipulation and siphoning funds to other companies.
The document summarizes the rise and fall of ABG Shipyard Ltd, which defrauded banks of over 22,842 crore rupees. It began in 1985 and grew successfully before the 2008 recession led to cancelled orders and debt issues. To solve debts, it took large loans but diverted most funds through shell companies. This was uncovered in 2018, leading to a CBI case against the company and its executives for criminal conspiracy, cheating, and breach of trust. The fraud impacted stakeholders and conflicted with ethical theories like Kant's means vs ends and Aristotle's golden mean. Recommendations included stronger due diligence, monitoring, and regulations for risky shipping businesses.
ILFS is a major infrastructure financing company that faced a severe liquidity crisis in 2018 when it began defaulting on loans and deposits totaling over Rs. 91,000 crores. An investigation found poor fund management, uncontrolled lending to insolvent entities, and negligence by management contributed to the crisis. The government took control of ILFS to prevent systemic impact and investigations have led to criminal charges against former senior executives.
IL&FS defaulted on its debt obligations in 2018, which totaled around Rs. 91,000 crore. This included debt at both the company and project levels. IL&FS took on numerous infrastructure projects but struggled with project delays and cost overruns. Rating agencies and auditors also failed to properly assess IL&FS's financial situation. The government subsequently suspended IL&FS's board of directors and appointed a new board to resolve the situation in an orderly manner.
KARVY STOCK BROKING LIMITED FRAUD, WHO ALL WERE INVOLVED IN THE SCAM, why the scam happened, how it was discovered, who discovered it, what were the replications of it, what happened after the scam, what actions were taken by the government,
Karvy stock broking firm scam, PPL involved, how auditor found it, steps taken by government, how the scam happened, who all were involved, what was the amt, how the case rested, till how much time it was going on, what levels of connection were there
A junior auditor at Zool Fahmy & Associates discovered an internal control weakness at client Harmoni
Sdn Bhd during an audit but it was not reported to management. Harmoni later defaulted on a loan from
ABC Bank. ABC Bank is now considering suing Zool Fahmy for negligence. The document discusses
several audit failure cases and outlines the auditor's duties and potential liabilities under common law
and statutes. It also provides questions for students about establishing an auditor's duty of care and
defending against negligence claims.
The document summarizes the PMC Bank fraud scandal in India. It provides background on PMC Bank, describing it as a multi-state co-operative bank that grew to 137 branches over 35 years, serving small businesses and housing societies. It then explains that loans to the financially distressed real estate company HDIL were not reported as non-performing assets, despite signs of trouble, and that HDIL loans accounted for over 73% of PMC's total advances. The scandal came to light in 2019 and led to restrictions on deposits, criminal investigations, arrests and hardship for depositors.
1) ABG Shipyard Ltd was founded in 1985 in Mumbai and grew to become one of India's largest privately owned shipbuilding firms, operating shipyards in multiple cities.
2) Between 2005-2010, banks continued lending generously to ABG despite signs of trouble, and the company was impacted by the 2008 global financial crisis.
3) In 2019, a forensic audit found evidence that ABG had defrauded 28 banks of Rs. 22,842 crore between 2012-2017 through financial statement manipulation and siphoning funds to other companies.
The document summarizes the rise and fall of ABG Shipyard Ltd, which defrauded banks of over 22,842 crore rupees. It began in 1985 and grew successfully before the 2008 recession led to cancelled orders and debt issues. To solve debts, it took large loans but diverted most funds through shell companies. This was uncovered in 2018, leading to a CBI case against the company and its executives for criminal conspiracy, cheating, and breach of trust. The fraud impacted stakeholders and conflicted with ethical theories like Kant's means vs ends and Aristotle's golden mean. Recommendations included stronger due diligence, monitoring, and regulations for risky shipping businesses.
ILFS is a major infrastructure financing company that faced a severe liquidity crisis in 2018 when it began defaulting on loans and deposits totaling over Rs. 91,000 crores. An investigation found poor fund management, uncontrolled lending to insolvent entities, and negligence by management contributed to the crisis. The government took control of ILFS to prevent systemic impact and investigations have led to criminal charges against former senior executives.
IL&FS defaulted on its debt obligations in 2018, which totaled around Rs. 91,000 crore. This included debt at both the company and project levels. IL&FS took on numerous infrastructure projects but struggled with project delays and cost overruns. Rating agencies and auditors also failed to properly assess IL&FS's financial situation. The government subsequently suspended IL&FS's board of directors and appointed a new board to resolve the situation in an orderly manner.
KARVY STOCK BROKING LIMITED FRAUD, WHO ALL WERE INVOLVED IN THE SCAM, why the scam happened, how it was discovered, who discovered it, what were the replications of it, what happened after the scam, what actions were taken by the government,
Karvy stock broking firm scam, PPL involved, how auditor found it, steps taken by government, how the scam happened, who all were involved, what was the amt, how the case rested, till how much time it was going on, what levels of connection were there
A junior auditor at Zool Fahmy & Associates discovered an internal control weakness at client Harmoni
Sdn Bhd during an audit but it was not reported to management. Harmoni later defaulted on a loan from
ABC Bank. ABC Bank is now considering suing Zool Fahmy for negligence. The document discusses
several audit failure cases and outlines the auditor's duties and potential liabilities under common law
and statutes. It also provides questions for students about establishing an auditor's duty of care and
defending against negligence claims.
The document summarizes the PMC Bank fraud scandal in India. It provides background on PMC Bank, describing it as a multi-state co-operative bank that grew to 137 branches over 35 years, serving small businesses and housing societies. It then explains that loans to the financially distressed real estate company HDIL were not reported as non-performing assets, despite signs of trouble, and that HDIL loans accounted for over 73% of PMC's total advances. The scandal came to light in 2019 and led to restrictions on deposits, criminal investigations, arrests and hardship for depositors.
IL&FS was a major infrastructure financing company in India that defaulted on several loans starting in 2018. It had taken on too much debt to fund projects while revenues from assets would come in over the long term, creating a major asset-liability mismatch. Key individuals like Ravi Parthasarathy and Ramchand Karunakaran are accused of fraudulently sanctioning loans and diverting funds. The defaults impacted investor confidence in the financial sector and caused stock market declines. Going forward, increased regulatory oversight is needed for large NBFCs along with stronger governance and auditing to prevent similar crises.
The three major financial Scams that shook the economy of India and Financial sector,
- The Satyam saga
- The Sahara Scam
- Saradha chit fund embezzlement
This pdf briefly explains how the scams were unearthed and brought to light.
1) The document summarizes a case study on the Punjab National Bank (PNB) scam that was uncovered in January 2018 and involved fraudulent letters of undertaking (LOUs) totaling $1.77 billion issued by rogue PNB employees to Nirav Modi and his associates.
2) It provides background on PNB, describes how the scam was carried out using fake LOUs on the SWIFT system without following proper procedures, and outlines a timeline of key events from 2011 to early 2018.
3) It also summarizes the responses and investigations by authorities like the Central Bureau of Investigation, Enforcement Directorate, Reserve Bank of India, Ministry of Corporate Affairs, and Securities and Exchange Board of
This document summarizes a banking scam involving PMC Bank and HDIL. It notes that PMC Bank made loans to HDIL that accounted for over 73% of its loan portfolio, despite HDIL being unable to repay its debts. To hide this, bank officials colluded with HDIL promoters and did not classify the loans as non-performing. They also created fake bank accounts and loan reports. When an internal whistleblower exposed the issue in 2019, it came to light that the bank had been hiding over Rs 6,500 crore in loans to HDIL through such fraudulent practices. The scam impacted many depositors and is being investigated for money laundering.
Karvy Stock Broking Ltd (KSBL) misused client securities worth over Rs. 2300 crore by illegally transferring them to its own accounts through forged client signatures and account manipulations. It did so to raise loans from multiple banks. The scam came to light in 2019 when SEBI issued new rules requiring separation of client funds and securities, which KSBL failed to comply with. SEBI subsequently banned KSBL and ordered investigations and client settlements.
This document is a consolidated second amended class action complaint filed in United States District Court against Qudian Inc. and several of its directors and officers. It alleges that the company's IPO registration statement contained materially false and misleading statements and omissions regarding Qudian's business practices, planned use of IPO proceeds, and launch of a new auto financing business called Dabai Auto. It asserts claims under Sections 11, 12 and 15 of the Securities Act for violations of the strict liability provisions.
Cobrapost, an Indian media organization, conducted a sting operation on three major Indian banks - ICICI, HDFC, and Axis. Undercover reporters posing as customers with large sums of money asked for advice on hiding cash from the government. Bank employees in multiple branches suggested opening multiple accounts under different names to avoid scrutiny and advised not providing proper documentation. The footage showed bankers willing to flout Know Your Customer (KYC) anti-money laundering guidelines. Following the expose, investigations revealed several violations by the banks of KYC and anti-money laundering regulations. The Reserve Bank of India subsequently penalized all three banks.
Indian Stock Market Journal-August 2019ISM_Journal
ISMJ came into existence to help and empower the Indian traders and investors with crisp research and market knowledge.
Conventional in belief and modern in approach, Indian Stock Market Journal (ISMJ), is India's leading equity research and stock market investment magazine. It is published every month with some intriguing articles about the Indian stock market and the business world.
It interests anyone who trades & invest in the stock market or wishes to do so or just wants to gain knowledge about the market.
The document summarizes the Kingfisher Airlines fraud case, which involved allegations that Vijay Mallya, the founder of Kingfisher Airlines, obtained loans totaling $1.4 billion from Indian banks for the airline but diverted significant funds to other companies he owned, contributing to the airline's financial collapse in 2012. Mallya left India in 2016 to avoid prosecution for fraud and money laundering related to the loans. As of September 2021, the UK courts had upheld Mallya's extradition to India to face charges. The case highlighted issues around transparency, accountability, corporate governance, and banks' lending practices in India.
The Yes Bank had grown to become the 4th largest private sector bank in India but faced declining financial position due to high bad loans and inability to raise capital. Rana Kapoor was the founder but stepped down in 2018 and is currently being investigated for money laundering. In March 2020, the RBI imposed a moratorium on Yes Bank withdrawals and took over its board due to serious governance and bad loan issues.
Reporting of fraud, recent issues in bankingNandiniSankhla
Fraud is different from normal NPAs in that fraud involves illegal actions by borrowers or bankers. Without successful prosecution of alleged fraudsters, classifying an account as fraud creates a problem similar to the chicken and egg dilemma. Recent major banking frauds in India include the PMC Bank fraud involving Rs. 6500 crore, the Nirav Modi scam/PNB scam relating to fraudulent letters of undertaking worth Rs. 11,356.84 crore, and the Allahabad Bank fraud where Bhushan Power & Steel misappropriated Rs. 1775 crore from the bank. Banking frauds negatively impact the Indian economy by causing unrest among bank customers and potentially slowing lending. Indian bankers may be hesitant to
The document provides an overview of the Banking, Financial Services and Insurance (BFSI) sector in Ahmedabad, India. It discusses 5 key players in the banking sector - State Bank of India, ICICI Bank, Dena Bank, HSBC Bank, and Kalupur Bank. For State Bank of India, it outlines the various products and services offered, including deposit accounts, personal finance options, and agriculture banking services. Overall, the document analyzes the major BFSI players in Ahmedabad and their offerings.
The document provides information on alternate revenue sources for IDBI Bank. It begins with an introduction to IDBI Bank and the current banking scenario of fee-based income in India. Private banks lead in fee income generation compared to public sector banks. The document then discusses the various products and services offered by IDBI Bank to generate income, including savings accounts, fixed deposits, recurring deposits, loans, etc. It concludes by identifying some key alternate revenue sources for IDBI Bank to focus on, such as bancassurance, mutual funds, locker facilities, bonds, forex, and demat services.
The document provides information about ICICI Bank, one of the largest private sector banks in India. It discusses ICICI Bank's history, business profile, subsidiaries, acquisitions, products, awards, financial performance, competitors, and controversies. Some key points include: ICICI Bank was established in 1955 and has expanded to offer various banking and financial services both domestically and internationally; it has acquired several other banks to grow its operations and customer base; and it has faced controversies related to alleged unfair debt collection practices and money laundering violations.
Indian economy is one of the world’s fastest growing economies with special growth of banking sector in the past few decades. Banking sector is the backbone of any economy. The Indian banking sector has experienced considerable growth since the introduction of financial sector reforms and liberalisation of economy in 1991. Though the banking industry is well regulated by Reserve Bank of India, still the sector suffers from financial distress. This study endeavours to cover banking frauds. In this article, author analyses the current financial difficulties in the banking sector due to the scams and frauds. The report discusses about the case of mounting Non performing assets in past few years across Indian scheduled public sector banks. Majority of the banks in India are facing the problems of low lending rate and nonperforming assets. Scams and non payment of the loans by the influential and wilful defaulters are one of the major problems for the banks at present. The author suggests certain measures to reduce banking sector frauds. Mrs Sunindita Pan "Analysis of Frauds in Indian Banking Sector" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-3 , April 2020, URL: https://www.ijtsrd.com/papers/ijtsrd30238.pdf Paper Url :https://www.ijtsrd.com/economics/financial-economics/30238/analysis-of-frauds-in-indian-banking-sector/mrs-sunindita-pan
A MS PowerPoint presentation that contains an idea about what Indian banking structure looks like and what role ICICI has played in the development of market infrastructure. It also contains Grievance Redressal system and controversies in which ICICI bank's name was highlighted
A project report on credit risk @ sbi project report mba finance By Babasab ...Babasab Patil
This document provides an overview of credit risk management at State Bank of India. It begins with an executive summary and background on credit risk. It then outlines the objectives, methodology, findings, recommendations, and conclusion of the project. The key points are that the project studied credit risk management procedures at SBI and found that its procedures are effective compared to other banks. It provided recommendations such as reducing interest rates and increasing lending to priority sectors like agriculture.
IL&FS is an Indian infrastructure development and financial company with over 250 subsidiaries that has taken on significant debt over time. In 2018, IL&FS began defaulting on some of its debt obligations, triggering fears of a liquidity crisis in financial markets. The government then superseded IL&FS's board and appointed a new board led by Uday Kotak to address the company's debt issues and stabilize the financial markets.
What is Rural Finance, Rural Electrification Programme, Challenges in Rural Electricity, Government Schemes Related to the Rural Electricity Programme & Projects
The document discusses money and capital markets. It defines money markets as trading highly liquid short-term products with safety and low returns. Capital markets refer to venues where funds are exchanged between those seeking capital and suppliers of capital like businesses and investors. Capital markets are divided into primary markets where new stocks/bonds are issued, and secondary markets where previously issued securities are traded. The main components of capital markets are the equity market for stocks, debt market for bonds, and derivatives market for financial contracts deriving value from underlying assets. Common capital market instruments include equities like shares, debt securities like bonds and debentures, derivatives like futures and options, and exchange-traded funds.
Contenu connexe
Similaire à BIGGEST BANKING FRAUD IN INDIAN HISTORY CASES TUDY
IL&FS was a major infrastructure financing company in India that defaulted on several loans starting in 2018. It had taken on too much debt to fund projects while revenues from assets would come in over the long term, creating a major asset-liability mismatch. Key individuals like Ravi Parthasarathy and Ramchand Karunakaran are accused of fraudulently sanctioning loans and diverting funds. The defaults impacted investor confidence in the financial sector and caused stock market declines. Going forward, increased regulatory oversight is needed for large NBFCs along with stronger governance and auditing to prevent similar crises.
The three major financial Scams that shook the economy of India and Financial sector,
- The Satyam saga
- The Sahara Scam
- Saradha chit fund embezzlement
This pdf briefly explains how the scams were unearthed and brought to light.
1) The document summarizes a case study on the Punjab National Bank (PNB) scam that was uncovered in January 2018 and involved fraudulent letters of undertaking (LOUs) totaling $1.77 billion issued by rogue PNB employees to Nirav Modi and his associates.
2) It provides background on PNB, describes how the scam was carried out using fake LOUs on the SWIFT system without following proper procedures, and outlines a timeline of key events from 2011 to early 2018.
3) It also summarizes the responses and investigations by authorities like the Central Bureau of Investigation, Enforcement Directorate, Reserve Bank of India, Ministry of Corporate Affairs, and Securities and Exchange Board of
This document summarizes a banking scam involving PMC Bank and HDIL. It notes that PMC Bank made loans to HDIL that accounted for over 73% of its loan portfolio, despite HDIL being unable to repay its debts. To hide this, bank officials colluded with HDIL promoters and did not classify the loans as non-performing. They also created fake bank accounts and loan reports. When an internal whistleblower exposed the issue in 2019, it came to light that the bank had been hiding over Rs 6,500 crore in loans to HDIL through such fraudulent practices. The scam impacted many depositors and is being investigated for money laundering.
Karvy Stock Broking Ltd (KSBL) misused client securities worth over Rs. 2300 crore by illegally transferring them to its own accounts through forged client signatures and account manipulations. It did so to raise loans from multiple banks. The scam came to light in 2019 when SEBI issued new rules requiring separation of client funds and securities, which KSBL failed to comply with. SEBI subsequently banned KSBL and ordered investigations and client settlements.
This document is a consolidated second amended class action complaint filed in United States District Court against Qudian Inc. and several of its directors and officers. It alleges that the company's IPO registration statement contained materially false and misleading statements and omissions regarding Qudian's business practices, planned use of IPO proceeds, and launch of a new auto financing business called Dabai Auto. It asserts claims under Sections 11, 12 and 15 of the Securities Act for violations of the strict liability provisions.
Cobrapost, an Indian media organization, conducted a sting operation on three major Indian banks - ICICI, HDFC, and Axis. Undercover reporters posing as customers with large sums of money asked for advice on hiding cash from the government. Bank employees in multiple branches suggested opening multiple accounts under different names to avoid scrutiny and advised not providing proper documentation. The footage showed bankers willing to flout Know Your Customer (KYC) anti-money laundering guidelines. Following the expose, investigations revealed several violations by the banks of KYC and anti-money laundering regulations. The Reserve Bank of India subsequently penalized all three banks.
Indian Stock Market Journal-August 2019ISM_Journal
ISMJ came into existence to help and empower the Indian traders and investors with crisp research and market knowledge.
Conventional in belief and modern in approach, Indian Stock Market Journal (ISMJ), is India's leading equity research and stock market investment magazine. It is published every month with some intriguing articles about the Indian stock market and the business world.
It interests anyone who trades & invest in the stock market or wishes to do so or just wants to gain knowledge about the market.
The document summarizes the Kingfisher Airlines fraud case, which involved allegations that Vijay Mallya, the founder of Kingfisher Airlines, obtained loans totaling $1.4 billion from Indian banks for the airline but diverted significant funds to other companies he owned, contributing to the airline's financial collapse in 2012. Mallya left India in 2016 to avoid prosecution for fraud and money laundering related to the loans. As of September 2021, the UK courts had upheld Mallya's extradition to India to face charges. The case highlighted issues around transparency, accountability, corporate governance, and banks' lending practices in India.
The Yes Bank had grown to become the 4th largest private sector bank in India but faced declining financial position due to high bad loans and inability to raise capital. Rana Kapoor was the founder but stepped down in 2018 and is currently being investigated for money laundering. In March 2020, the RBI imposed a moratorium on Yes Bank withdrawals and took over its board due to serious governance and bad loan issues.
Reporting of fraud, recent issues in bankingNandiniSankhla
Fraud is different from normal NPAs in that fraud involves illegal actions by borrowers or bankers. Without successful prosecution of alleged fraudsters, classifying an account as fraud creates a problem similar to the chicken and egg dilemma. Recent major banking frauds in India include the PMC Bank fraud involving Rs. 6500 crore, the Nirav Modi scam/PNB scam relating to fraudulent letters of undertaking worth Rs. 11,356.84 crore, and the Allahabad Bank fraud where Bhushan Power & Steel misappropriated Rs. 1775 crore from the bank. Banking frauds negatively impact the Indian economy by causing unrest among bank customers and potentially slowing lending. Indian bankers may be hesitant to
The document provides an overview of the Banking, Financial Services and Insurance (BFSI) sector in Ahmedabad, India. It discusses 5 key players in the banking sector - State Bank of India, ICICI Bank, Dena Bank, HSBC Bank, and Kalupur Bank. For State Bank of India, it outlines the various products and services offered, including deposit accounts, personal finance options, and agriculture banking services. Overall, the document analyzes the major BFSI players in Ahmedabad and their offerings.
The document provides information on alternate revenue sources for IDBI Bank. It begins with an introduction to IDBI Bank and the current banking scenario of fee-based income in India. Private banks lead in fee income generation compared to public sector banks. The document then discusses the various products and services offered by IDBI Bank to generate income, including savings accounts, fixed deposits, recurring deposits, loans, etc. It concludes by identifying some key alternate revenue sources for IDBI Bank to focus on, such as bancassurance, mutual funds, locker facilities, bonds, forex, and demat services.
The document provides information about ICICI Bank, one of the largest private sector banks in India. It discusses ICICI Bank's history, business profile, subsidiaries, acquisitions, products, awards, financial performance, competitors, and controversies. Some key points include: ICICI Bank was established in 1955 and has expanded to offer various banking and financial services both domestically and internationally; it has acquired several other banks to grow its operations and customer base; and it has faced controversies related to alleged unfair debt collection practices and money laundering violations.
Indian economy is one of the world’s fastest growing economies with special growth of banking sector in the past few decades. Banking sector is the backbone of any economy. The Indian banking sector has experienced considerable growth since the introduction of financial sector reforms and liberalisation of economy in 1991. Though the banking industry is well regulated by Reserve Bank of India, still the sector suffers from financial distress. This study endeavours to cover banking frauds. In this article, author analyses the current financial difficulties in the banking sector due to the scams and frauds. The report discusses about the case of mounting Non performing assets in past few years across Indian scheduled public sector banks. Majority of the banks in India are facing the problems of low lending rate and nonperforming assets. Scams and non payment of the loans by the influential and wilful defaulters are one of the major problems for the banks at present. The author suggests certain measures to reduce banking sector frauds. Mrs Sunindita Pan "Analysis of Frauds in Indian Banking Sector" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-3 , April 2020, URL: https://www.ijtsrd.com/papers/ijtsrd30238.pdf Paper Url :https://www.ijtsrd.com/economics/financial-economics/30238/analysis-of-frauds-in-indian-banking-sector/mrs-sunindita-pan
A MS PowerPoint presentation that contains an idea about what Indian banking structure looks like and what role ICICI has played in the development of market infrastructure. It also contains Grievance Redressal system and controversies in which ICICI bank's name was highlighted
A project report on credit risk @ sbi project report mba finance By Babasab ...Babasab Patil
This document provides an overview of credit risk management at State Bank of India. It begins with an executive summary and background on credit risk. It then outlines the objectives, methodology, findings, recommendations, and conclusion of the project. The key points are that the project studied credit risk management procedures at SBI and found that its procedures are effective compared to other banks. It provided recommendations such as reducing interest rates and increasing lending to priority sectors like agriculture.
IL&FS is an Indian infrastructure development and financial company with over 250 subsidiaries that has taken on significant debt over time. In 2018, IL&FS began defaulting on some of its debt obligations, triggering fears of a liquidity crisis in financial markets. The government then superseded IL&FS's board and appointed a new board led by Uday Kotak to address the company's debt issues and stabilize the financial markets.
Similaire à BIGGEST BANKING FRAUD IN INDIAN HISTORY CASES TUDY (20)
What is Rural Finance, Rural Electrification Programme, Challenges in Rural Electricity, Government Schemes Related to the Rural Electricity Programme & Projects
The document discusses money and capital markets. It defines money markets as trading highly liquid short-term products with safety and low returns. Capital markets refer to venues where funds are exchanged between those seeking capital and suppliers of capital like businesses and investors. Capital markets are divided into primary markets where new stocks/bonds are issued, and secondary markets where previously issued securities are traded. The main components of capital markets are the equity market for stocks, debt market for bonds, and derivatives market for financial contracts deriving value from underlying assets. Common capital market instruments include equities like shares, debt securities like bonds and debentures, derivatives like futures and options, and exchange-traded funds.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise stimulates the production of endorphins in the brain which elevate mood and reduce stress levels.
The document summarizes issues with the quality of engineering education in India. It notes that while the number of approved institutions is twice the number of engineering aspirants, ensuring access to affordable, quality education remains a challenge. Of the over 5,900 approved institutions, only 1,249 participated in national rankings, suggesting a dearth of quality programs. To meet the needs and aspirations of students and support national development, the article argues that improving overall education quality across institutions is needed rather than focusing only on increasing seat numbers or intake at existing schools.
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This presentation is a curated compilation of PowerPoint diagrams and templates designed to illustrate 20 different digital transformation frameworks and models. These frameworks are based on recent industry trends and best practices, ensuring that the content remains relevant and up-to-date.
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Forrester’s Digital Transformation Framework
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Gartner’s Digital Transformation Framework
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Capgemini’s Digital Transformation Framework
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BIGGEST BANKING FRAUD IN INDIAN HISTORY CASES TUDY
1. BIGGEST BANKING FRAUD IN INDIAN HISTORY
PRESENTED BY:-
SACHIN PRATAP SINGH
MRIDUL KUMAR
AB G SHIIP Y ARD F RAUD CA S E
2. ABOUT ABG SHIPYARD
ABG SHIPYARD : TIMELINE OF THE EVENTS
HOW DID THE FRAUD COME TO LIGHT?
MEMBER INVOLVED IN THE CASE
ABG SHIPYARD : BANKS INVOLVED IN THE CASE
WHY IS IT CONSIDERED AS INDIA’S BIGGEST BANK FRAUD?
TYPES OF FRAUD
PREVENTION STARTEGIES TO MITIGATE FRAUD
FACTS & FIGURES
CONCLUSION
ABG SHIIPYARD FRAUD CASE 2
AGENDA
3. ABOUT ABG SHIPYARD
Types– Public Company
ABG Shipyard LTD
Industry – Ship Building
Founded in 1985
Headquarters – SURAT, INDIA
Service Ship – Ship Design, Ship
Building, Ship Repair.
Number of Employees- 250
Division - 2
Rishi Agarwal Chairman & MD
ABG SHIPYARD
3
4. ABG Shipyard Ltd is a part of the ABG Group of companies with diversified business interests. Established in 1985, it is
headquartered in Mumbai. It has shipbuilding operations in Surat and Dahej in Gujarat. Following its acquisition
of Western India Shipyard Limited in October 2010, it operates a ship repair unit in Goa which is the largest ship
maintenance facility in India.
ABG became one of the largest private ship building companies in India with a capacity to manufacture vessels up to 20
tonnes in weight. In January 2019, a forensic audit by E&Y revealed that ABG had defrauded a 28-member consortium of
bankers to the tune of Rs 22000 crores. Following this in November 2019, State bank of India petitioned CBI to conduct
an investigation. CBI asked the bank to investigate at their level to check for involvement of bank insiders which was
ruled out subsequently. Post this in September 2020 SBI filed a fresh complaint seeking investigation in to the role of
public servants and other persons in the fraud. In February 2022, a look out circular was issued against the ABG former
Chairman Rishi Agarwal and others in the case.
ABG SHIPYARD FRAUD CASE 4
ABOUT ABG SHIPYARD
5. ABG SHIPYARD: TIMELINE & EVENTS
5
March 2005- 2010: Despite warning indicators from the 2008 global financial crisis, banks continue to
generously lend to ABG Shipyards is impacted by the global financial crisis, which was sparked by the U.S.
housing bubble and the demise of Lehman Brothers. Because of the company's current lack of working capital,
the operating cycle has "significantly lengthened, compounding the liquidity and financial difficulties."
March 2014: Under the corporate debt restructuring, or CDR, programme, SBI makes an effort to restructure
loans to ABG Shipyard. ABG Shipyards' inability to pay interest and installments by the due date prevents the
restructuring from succeeding.
July 2016: Backdating to November 30, 2013, the ABG account has been deemed a non-performing asset
(NPA). Jan 2019: ABG Shipyard is the subject of a forensic audit by Ernst and Young LLP. It discovers fraud
evidence from April 2012 to July 2017. The audit reveals that fraud was committed "by theft, criminal breach
of trust, and diversion of funds, with the purpose of obtaining illegal gain at the expense of the bank's funds."
AB G SHIIP Y ARD F RAUD CA S E
6. 6
July 2016: Backdating to November 30, 2013, the ABG account has been deemed a non-performing asset
(NPA).
Jan 2019: ABG Shipyard is the subject of a forensic audit by Ernst and Young LLP. It discovers fraud evidence
from April 2012 to July 2017. The audit reveals that fraud was committed "by theft, criminal breach of trust,
and diversion of funds, with the purpose of obtaining illegal gain at the expense of the bank's funds.“
From 28 banks, ABG Shipyard mostly obtained three basic forms of loans. After being misdirected through 98
sister concern companies, the funds obtained through these loans were primarily used to build personal assets.
November 2019: SBI & others banks files a complaint to CBI
12 March 2020 : CBI Collect all data, documents with proof with the help of others banks
AB G SHIIP Y ARD F RAUD CA S E
7. 7
April 2022: ED conducts raids at 26 premises under the Prevention of Money Laundering Act in Mumbai,
Pune and Surat. These premises belonged to ABG Shipyard, its sister companies and its executives.
21 September 2022: CBI arrests ABG Shipyard promoter Rishi Agarwal.
22 September 2022: ED attaches ABG Shipyard's assets over Rs 2,747 crore which includes shipyards at
Surat and Dahej in Gujarat and Maharashtra, agricultural lands, commercial and residential premises, and bank
deposits.
February 2022: CBI registers a case, books ABG Shipyard and ABG International Private Ltd.
15 February, 2022: Santhanam Muthuswamy, Ashwini Kumar, and promoter Rishi Agarwal are the targets of
lookout notifications from the CBI & ED also files a money laundering case for defrauding banks and CBI
questions ABG chief Rishi Agarwal
AB G SHIIP Y ARD F RAUD CA S E
9. HOW DID THE FRAUD COME TO LIGHT?
ABG SHIPYARD- FRAUD CASE 9
The alleged fraud came to light during a forensic audit of the loan account’s transactions from April 2012 to July 2017.
According to the complaint lodged by the bank, the account was declared a fraud in June 2019. The account had become non-
performing asset in July 2016 with effect from November 30, 2013.
Based on a complaint from the State Bank of India, the Enforcement Directorate filed a money-laundering investigation against
Gujarat-based ABG Shipyard, which has been described as being implicated in "India's biggest bank scam in history." The company's
chairman, Rishi Kamlesh Agarwal, has been questioned by the CBI for defaulting on loans of Rs 22,842 crore that ABG Shipyard
obtained from 28 banks.
According to the CBI, a forensic audit conducted by Ernst & Young in 2019 indicated that funds were diverted to other linked firms
with loans reportedly being utilised for investments through offshore subsidiaries. According to the examining agency, these loans
were not utilised for the intended purpose, thereby breaking the agreements.
10. MEMBER INVOLVED IN THE CASE
10
In the ABG Shipyard fraud case, the following individuals
and entities were named as accused in the charge sheet filed
by the CBI
Rishi Agarwal: Former ABG group chairman.
Five Individuals: Including a Mumbai-based private
company chairman & promoter, then chief financial officer,
then vice president (accounts), then assistant vice president
(accounts), and another person handling the group's
offshore entities.
Three Singapore-based Firms: Among the 19 companies
named in the charge
11. BANKS AFFECTED BY ABG SHIPYARD LOAN FRAUD
11
5 YEARS, 28 BANKS, TOTAL DEBT & FRAUD RS 22,842 CRORE
Losses to Banks: The fraud, amounting to Rs 22,842 crore, defrauded 28 banks, including major
institutions like ICICI, IDBI Bank, and SBI. This massive loss strained the banking sector and eroded
trust in lending practices
Source :- BusinessToday.in
12. 12
WHY IS IT CONSIDERED AS INDIA’S BIGGEST BANK FRAUD?
The ABG Shipyard fraud case is considered India's biggest bank fraud due to several key factors that set it apart
in terms of scale, impact, and complexity:
• Magnitude of the Fraud: The fraud at ABG Shipyard involved a staggering amount of Rs 22,842 crore,
making it one of the largest financial scams in India's history. This massive sum defrauded a consortium of 28
banks, including major institutions like SBI, ICICI Bank, and IDBI Bank
• Extensive Fund Diversion: The forensic audit conducted by Ernst & Young revealed that between April 2012
and June 2017, loans given to ABG Shipyard were siphoned off and utilized to buy assets for related parties.
The company also channeled some of these funds into its overseas subsidiaries, indicating a complex web of
transactions aimed at diverting borrowed money for unofficial purposes
13. 13
• Involvement of Major Banks: Banks like SBI and ICICI Bank, considered "too big to fail," had significant
exposures to ABG Shipyard amounting to billions of rupees. ICICI Bank alone had an exposure of Rs 7,089
crore, highlighting the substantial impact on major financial institutions
• Impact on Lenders: The fraud not only resulted in financial losses for the banks but also eroded trust in
lending practices and raised concerns about the efficacy of oversight mechanisms within the banking sector.
The exposure of prominent banks to such fraudulent activities underscored the need for stricter regulations and
enhanced vigilance
• Legal Ramifications: The Central Bureau of Investigation (CBI) filed an FIR against ABG Shipyard's
directors and promoters for alleged offenses including criminal conspiracy, cheating, criminal breach of trust,
and abuse of official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act. This
legal action highlighted the severity of the fraud and the need for accountability
WHY IS IT CONSIDERED AS INDIA’S BIGGEST BANK FRAUD?
14. 14
TYPES OF FRAUD
The fraud involved :-
Criminal breach of trust.
Misappropriation of funds received from banks.
Diversion of funds for unofficial purposes.
Creating a complex web of transactions to misuse borrowed money .
Criminal Breach of Trust: The fraud at ABG Shipyard involved a criminal breach of trust where the
company's executives and individuals associated with the firm misused the trust placed in them by financial
institutions. They diverted funds received from banks for unauthorized purposes, violating the trust and
confidence that lenders had in the company's financial integrity
Explanantion:-
15. 15
Misappropriation of Funds: One of the key aspects of the fraud was the misappropriation of funds received from
banks. Instead of utilizing the borrowed money for the intended purposes, the perpetrators diverted these funds for
personal gain or unofficial activities. This misappropriation involved using the borrowed funds in ways that were
not disclosed to the lenders, leading to financial losses for the banks involved
Diversion of Funds for Unofficial Purposes: The fraudsters at ABG Shipyard engaged in the diversion of funds
for unofficial purposes. This involved channeling the borrowed money into activities that were not related to the
company's legitimate operations or projects. By diverting funds for unofficial purposes, the perpetrators aimed to
benefit themselves or other entities through deceptive financial transactions
Complex Web of Transactions: The fraudulent activities at ABG Shipyard included creating a complex web of
transactions to misuse the borrowed money. This complexity in financial transactions was designed to obfuscate the
true nature of fund diversion and misappropriation. By creating a convoluted network of transactions, the
perpetrators sought to conceal their fraudulent activities and avoid detection by regulatory authorities and lenders
TYPES OF FRAUD
16. PREVENTION STARTEGIES TO MITIGATE FRAUD
16
To mitigate such frauds, institutions need robust monitoring mechanisms to detect red flags early on. In this
case, forensic audits were crucial in uncovering the fraudulent activities. Initiating forensic audits based on
lenders' decisions helped in revealing the extent of fund diversion
Comprehensive Examination: Forensic audits involve a detailed and comprehensive examination of
financial records, transactions, and activities to identify irregularities, discrepancies, and potential fraud
indicators. In the ABG Shipyard case, forensic audits delved deep into the company's financial data to
uncover the extent of fund diversion and misuse of borrowed funds.
Uncovering Red Flags: Forensic audits are designed to detect red flags that may indicate fraudulent
activities, such as unusual transactions, discrepancies in financial statements, unauthorized fund transfers, or
irregular accounting practices. By scrutinizing financial records and conducting in-depth analyses, forensic
auditors can identify suspicious patterns that warrant further investigation.
17. 17
Verification of Compliance: Forensic audits verify compliance with laws, regulations, and internal policies
to ensure transparency and integrity in financial operations. In the ABG Shipyard case, forensic audits helped
assess the company's adherence to lending agreements, fund utilization guidelines, and regulatory
requirements, highlighting instances of non-compliance and potential fraud.
Evidence Collection: Forensic audits involve collecting and preserving evidence that can be used in legal
proceedings or investigations. By documenting findings meticulously and maintaining a chain of custody for
evidence, forensic auditors contribute to building a strong case against perpetrators of fraud, aiding in legal
actions and recovery efforts.
PREVENTION STARTEGIES TO MITIGATE FRAUD
18. SOME FACTS & FIGURES
18
The value of online financial frauds in India increased significantly from ₹2,296 crore in 2022 to ₹5,574 crore in 2023,
as reported by the Union home ministry to the Parliamentary Standing Committee on Communications and
Information Technology
Financial scams in India have been a recurring concern, impacting individuals and the economy. Ponzi schemes,
investment scams, digital banking and credit card frauds, QR code scams, investment scams, part-time job scams,
courier scams, and malware threats are among the common financial frauds reported in India
The central bank classifies financial frauds into various categories, including misappropriation, criminal breach of
trust, forged instrument encashment, manipulation of accounts, fictitious accounts, unauthorized credit facilities,
negligence, cash shortages, cheating, forgery, irregularities in foreign exchange transactions, and other forms of fraud
not specifically mentioned
19. 19
Questions for Discussion
Which government banks were involved in the ABG shipyard fraud case ?
Who are the people involved in the ABG shipyard fraud case?
What was the outcome of the CBI investigation in the ABG shipyard fraud case?
What was the amount of money involved in the ABG shipyard fraud case?
What was the role of Indian government in ABG shipyard case?
what measures have been taken by the Indian government to prevent similar fraud cases in the future
what are the specific steps taken by the ministry of home affairs to prevent online financial frauds