2.

Harshad Mehta

He was known as the 'Big Bull'. However, his bull run did not last too long.

He triggered a rise in the Bombay Stock Exchange in the year 1992 by

trading in shares at a premium across many segments.

Taking advantages of the loopholes in the banking system, Harshad and his
associates triggered a securities scam diverting funds to the tune of Rs
4000 crore (Rs 40 billion) from the banks to stockbrokers between April
1991 to May 1992.

Harshad Mehta worked with the New India Assurance Company before he
moved ahead to try his luck in the stock markets. Mehta soon mastered the
tricks of the trade and set out on dangerous game plan.

Mehta has siphoned off huge sums of money from several banks and
millions of investors were conned in the process. His scam was exposed, the
markets crashed and he was arrested and banned for life from trading in
the stock markets.

He was later charged with 72 criminal offences.

A Special Court also sentenced Sudhir Mehta, Harshad Mehta's brother,

and six others, including four bank officials, to rigorous imprisonment (RI)
ranging from 1 year to 10 years on the charge of duping State Bank of India
to the tune of Rs 600 crore (Rs 6 billion) in connection with the securities
scam that rocked the financial markets in 1992. He died in 2002 with many
litigations still pending against him.

3. Ketan Parekh

Ketan Parekh followed Harshad Mehta's footsteps to swindle crores of

rupees from banks. A chartered accountant he used to run a family
business, NH Securities.Ketan however had bigger plans in mind. He
targetted smaller exchanges like the Allahabad Stock Exchange and the
Calcutta Stock Exchange, and bought shares in fictitious names.
His dealings revolved around shares of ten companies like Himachal
Futuristic, Global Tele-Systems, SSI Ltd, DSQ Software, Zee Telefilms,
Silverline, Pentamedia Graphics and Satyam Computer (K-10 scrips).

Ketan borrowed Rs 250 crore from Global Trust Bank to fuel his ambitions.
Ketan alongwith his associates also managed to get Rs 1,000 crore from the
Madhavpura Mercantile Co-operative Bank.

According to RBI regulations, a broker is allowed a loan of only Rs 15 crore

(Rs 150 million). There was evidence of price rigging in the scrips of Global
Trust Bank, Zee Telefilms, HFCL, Lupin Laboratories, Aftek Infosys and
Padmini Polymer.

4. C R Bhansali

The Bhansali scam resulted in a loss of over Rs 1,200 crore (Rs 12 billion).

He first launched the finance company CRB Capital Markets, followed by

CRB Mutual Fund and CRB Share Custodial Services. He ruled like a
financial wizard 1992 to 1996 collecting money from the public through
fixed deposits, bonds and debentures. The money was transferred to
companies that never existed.

CRB Capital Markets raised a whopping Rs 176 crore in three years. In 1994
CRB Mutual Funds raised Rs 230 crore and Rs 180 crore came via fixed
deposits. Bhansali also succeeded to to raise about Rs 900 crore from the
markets.
However, his good days did not last long, after 1995 he received several
jolts. Bhansali tried borrowing more money from the market. This led to a
financial crisis.

It became difficult for Bhansali to sustain himself. The Reserve Bank of

India (RBI) refused banking status to CRB and he was in the dock. SBI was
one of the banks to be hit by his huge defaults

5. Cobbler scam

Sohin Daya, son of a former Sheriff of Mumbai, was the main accused in the
multi-crore shoes scam. Daya of Dawood Shoes, Rafique Tejani of Metro
Shoes, and Kishore Signapurkar of Milano Shoes were arrested for creating
several leather co-operative societies which did not exist.

They availed loans of crores of rupees on behalf of these fictitious societies.

The scam was exposed in 1995. The accused created a fictitious cooperative
society of cobblers to take advantage of government loans through various
schemes.

Officials of the Maharashtra State Finance Corporation, Citibank, Bank of

Oman, Dena Bank, Development Credit Bank, Saraswat Co-operative Bank,
and Bank of Bahrain and Kuwait were also charge sheeted.

6.IPO Scam

The Securities and Exchange Board of India barred 24 key operators,

including Indiabulls and Karvy Stock Broking, from operating in the stock
market and banned 12 depository participants from opening fresh accounts
for their involvement in the Initial Public Offer scam.

It also banned 85 financiers from capital market activities.

Suzlon Energy Ltd's Rs 1,496.34 crore (Rs 14.963 billion) public issue
(September 23-29, 2005). The retail portion was oversubscribed 6.04 times
and the non-institutional portion was oversubscribed 40.27 times. Key
operators used 21,692 fictitious accounts to corner 323,023 shares
representing 3.74 per cent of the total number of shares allotted to retail
individual investors.

Jet Airways's Rs 1,899.3 crore (Rs 18.993 billion) public offer (Feb 18-24,
2005). The retail portion was subscribed 2.99 times and the non-
institutional portion by 12.5 times. Key operators used 1186 fake accounts
for cornering 20,901 shares repersenting 0.52 per cent of the total number
of shares allotted to retail investors.

National Thermal Power Corporation Ltd's Rs 5,368.14 crore (Rs 53.681

billion) IPO (Oct 7-14, 2004). The retail portion was oversubscribed 3.73
times and the non-institutional portion by 11.93 times. Key operators used a
total of 12,853 afferent accounts for cornering 2,750,730 shares
representing 1.3 per cent of the total number of shares allotted to retail
investors.

Tata Consultancy Services's Rs 4,713.47 crore (Rs 47.134 billion) public

offer (Aug 19-23, 2004). The retail portion was oversubscribed 2.86 times
and the non-institutional portion by 19.15 times. Key operators used 14,619
'benami' accounts to corner 261,294 shares representing 2.09 per cent of
the total shares allotted to retail individual investors.

Patni Computer System Ltd's Rs 430.65 crore (Rs 4.306 billion) public issue
(Jan 27-Feb 5 2004). The retail portion was oversubscribed 9.36 times and
the non-institutional portion by 39.22 times. A lone key operator used 2541
afferent account for cornering 127,050 shares representing 2.71 per cent of
the total number of shares allotted to retail investors.

7. Dinesh Dalmia
Dinesh Dalmia was the managing director of DSQ Software Limited when
the Central Bureau of Investigation arrested him for his involvement in a
stocks scam of Rs 595 crore (Rs 5.95 billion).

Dalmia's group included DSQ Holdings Ltd, Hulda Properties and Trades
Ltd, and Powerflow Holding and Trading Pvt Ltd.

Dalmia resorted to illegal ways to make money through the partly paid
shares of DSQ Software Ltd, in the name of New Vision Investment Ltd, UK,
and unallotted shares in the name of Dinesh Dalmia Technology Trust.

Investigation showed that 1.30 crore (13 million) shares of DSQ Software
Ltd had not been listed on any stock exchange.

8. Abdul Karim Telgi

He paid for his own education at Sarvodaya Vidyalaya by selling fruits and
vegetables on trains.

He is today famous (or infamous) for being he man behind one of India's
biggest scams.

The Telgi case is another big scam that rocked India. The fake stamp racket
involving Abdul Karim Telgi was exposed in 2000. The loss is estimated to
be Rs 171.33 crore (Rs 1.71 billion), it was initially pegged to be Rs 30,000
crore (Rs 300 bilion), which was later clarified by the CBI as an exaggerated
figure.

In 1994, Abdul Karim Telgi acquired a stamp paper license from the Indian
government and began printing fake stamp papers.

Telgi bribed to get into the government security press in Nashik and bought
special machines to print fake stamp papers.
Telgi's networked spread across 13 states involving 176 offices, 1,000
employees and 123 bank accounts in 18 cities.

9.Virendra Rastogi

Virendra Rastogi chief executive of RBG Resources was charged with for
deceiving banks worldwide of an estimated $1 billion.

He was also involved in the duty-drawback scam to the tune of Rs 43 crore

(Rs 430 milion) in India.

The CBI said that five companies, whose directors were the four Rastogi
brothers -- Subash, Virender, Ravinde and Narinder -- exported bicycle
parts during 1995-96 to Russia and Hong Kong by heavily over invoicing the
value of goods for claiming excess duty draw back from customs.

10. The UTI Scam

Former UTI chairman P S Subramanyam and two executive directors -- M

M Kapur and S K Basu -- and a stockbroker Rakesh G Mehta, were arrested
in connection with the 'UTI scam'.

UTI had purchased 40,000 shares of Cyberspace between September 25,

2000, and September 25, 2000 for about Rs 3.33 crore (Rs 33.3 million)
from Rakesh Mehta when there were no buyers for the scrip. The market
price was around Rs 830.

The CBI said it was the conspiracy of these four people which resulted in the
loss of Rs 32 crore (Rs 320 million). Subramanyam, Kapur and Basu had
changed their stance on an investment advice of the equities research cell of
UTI.
The promoter of Cyberspace Infosys, Arvind Johari was arrested in
connection with the case. The officals were paid Rs 50 lakh (Rs 5 million) by
Cyberspace to promote its shares.

He also received Rs 1.18 crore (Rs 11.8 million) from the company through a
circuitous route for possible rigging the Cyberspace counter.

11. Uday Goyal

Uday Goyal, managing director of Arrow Global Agrotech Ltd, was yet
another fraudster who cheated investors promising high returns through
plantations. Goyal conned investors to the tune of over Rs 210 crore (Rs
2.10 billion). He was finally arrested.

The plantation scam was exposed when two investors filed a complaint
when they failed to get the promised returns.

Over 43,300 persons had fallen into Goyal's trap. Several criminal
complaints were filed with the Economic Offences Wing.

The company's directors and their relatives had misused the investors'
money to buy properties. The High Court asked the company to sell its
properties and repay its investors.

12. Sanjay Agarwal

Home Trade had created waves with celebrity endorsements.

But Sanjay Agarwal's finance portal was just a veil to cover up his shady
deals. He swindled a whopping Rs 600 crore (Rs 6 billion) from more than
25 cooperative banks.
The government securities (gilt) scam of 2001 was exposed when the
Reserve Bank of India checked the acounts of some cooperative banks
following unusual activities in the gilt market.

Co-operative banks and brokers acted in collusion in abid to make easy

money at the cost of the hard earned savings of millions of Indians. In this
case, even the Public Provident Fund (PPF) was affected.

A sum of about Rs 92 crore (Rs 920 million) was missing from the Seamen's
Provident Fund. Sanjay Agarwal, Ketan Sheth (a broker), Nandkishore
Trivedi and Baluchan Rai (a Hong Kong-based Non-Resident Indian) were
behind the Home Trade scam.

KETAN PARIKH -> what a word and what a man, made

millions in what a way, fantastic the man’s brains though
criminal in bent should be marveled at the way he took many
reputed institutions and banks for a long ride only to sent
each of them packing to a cocoon in the end.

For sure some of the FIs and Banks will never be the same
again. Hear this a classic story > Financial institutions
Industrial Development Bank of India (IDBI) and Industrial
Finance Corporation of India (IFCI) had extended loans of Rs
1,400-odd crore to companies known to be close to broker
Ketan Parekh and this was the information which was
furnished by the Reserve Bank of India to the Joint
Parliamentary Committee (JPC), it says that a colossal sum
of more than Rs 1,000 crore was advanced by IDBI to
companies such as Global Telesystems (Rs 40 crore),
Himachal Futuristic Communications Ltd (Rs 357.09 crore),
SSI Ltd (Rs 71.75 crore), Satyam Computers (Rs 169.80
crore), Zee Telefilms (Rs 50 crore), Microwave
Communication, an HFCL group company (Rs 20 crore) and
HFCL Infotech (Rs 300 crore) and all these loans were in the
form of rupee loans. The RBI has documented that in the
case of HFCL, the disbursed amount at Rs 357.09 crore was
higher than the sanctioned amount of Rs 253.15 crore and
these advances were made after January 1999. The RBI, in
its presentations to the JPC, said that it proposed to inspect
the accounts of the FIs to assess their exposure to the capital
market and check whether any of the loans disbursed by
them went into the stock markets and further, ICICI had
extended corporate loans of Rs 60 crore to group companies
of Zee Telefilms against a pledge of equity shares by the
companies and had also advanced loans of Rs 200 crore to
group companies of Ranbaxy Laboratories, again against
shares pledged by Ranbaxy and according to the RBI, these
loans are still outstanding.

The FI had also extended a loan of Rs 200 crore to group

companies of HCL Technologies in 1999 against shares
pledged but this amount has been repaid. Another FI, IFCI
also made advances to the tune of Rs 86 crore, but most of
these disbursements were via loans sanctioned in 1996 and
1998 and the companies to which the loans were made
include DSQ Industries, HFCL and HFCL Satellite
Communications Ltd. Both ICICI and IDBI had fairly large
exposures to the equity market.

Between January 1, 1999 and June 28, 2001, ICICI invested

Rs 444.65 crore in secondary market purchases of Global
Telesystems, HFCL, HCL Technologies, HCL Infosys, NIIT Ltd,
Pentamedia Graphics, Ranbaxy Labs, Satyam Computers,
Silverline Industries, SSI Ltd, and Zee Telefilms and it
realized a profit of Rs 93.6 crore from the sales of these
scrips. IDBI, on the other hand, had invested Rs 37 crore in
equities during the same period. It realized profits of Rs 75
crore from the sale of these shares, the bulk of the profit
coming from the sale of HFCL shares.

Another sweet news > MMCB loans go to KP coffers

The Madhavpura Mercantile Co-op Bank, which was in the

center of the controversy of the Rs 137 crore pay-order scam
involving Ketan Parekh and Bank of India, has been found to
have violated all norms in disbursing loans worth Rs 1,082.22
crore when it had sanctioned only Rs 299.95 crore, the
Reserve Bank of India (RBI) has documented before the Joint
Parliamentary Committee (JPC) and remember the infamous
Bank of Karad of Bhupen Dalal fame a few years ago, its fate
is all likelihood to sock the MMCB.

RBI said that an inspection of the Madhavpura's books

revealed that out of the total amount advanced, Rs 843.57
crore pertained to companies in which Parekh or his close
relatives were directors and Madhavpura is also said to have
given loans to at least 18 entities between 1999 and 2000
which were found either to be linked to Ketan Parekh or were
major share brokers in their own right, the RBI investigations
showed. Among the more prominent names in the brokers
list are -

Triumph International Finance, Mukesh Babu Securities, V N

Parekh Securities Pvt Ltd, KNP Securities Pvt Ltd, Sai Mangal
Investrade Ltd, N H Securities Ltd, Panther Investrade Ltd,
Panther Fincap, Luminate Investment Pvt Ltd, SBM
Investment, Maniar Financial Services, Mukesh Babu
Financial Services, Mukesh Babu Management Consultancy,
Mukesh Babu Stock Broking, Sagar Leasing, Nakshatra
Software, Goldfish Computer and Chitrakut Computer.

According to RBI, while the books of accounts of the bank did

not reveal any gross violation during 1998-99, two years
later, the inspections revealed blatant violation of the lending
norms as well as directives on granting loans and advances
to share brokers and on March 13, RBI directed the bank not
to accept fresh deposits or give fresh loans and also not to
repay more than Rs 1,000 to any single depositor.

The Ahmedabad regional office of the RBI is also conducting

a full-fledged inspection of the bank's books and a report is
to be submitted shortly.

KETAN PARIKH -> the name would ring for generations to

come and would displace with disdain the names of the
famous Indian personalities over the years from their
pedestal of high seats, and who knows could be as dreaded
as the famous DON DAWOOD IBRAHIM. His story of milking
millions would make for a good film script and some famous
filmmaker should take the plunge and go ahead with a movie
on the man KETAN PARIKH.