New Delhi: The Year 2019 was not a favourable year for the Indian economy. The same goes to the automobile sector and banking sector as well. A number of sectors were affected for some, or the other reason and India as a whole was affected because of this. The banking sector too was severely affected by frauds and scams. And this led to protests across the country in which many people lost their lives. Here is a list of bank scams that shocked and rocked the nation in the year gone by.
PMC Bank scam: It was the biggest bank scam of the year. On December, Mumbai police’s Economic Offences Wing submitted a 32,000-page charge sheet against five persons in the multi-crore Punjab and Maharashtra Cooperative (PMC) Bank scam in a metropolitan magistrate court in Mumbai. A major fraud at PMC Bank came to light in September this year after the Reserve Bank of India discovered that the bank had allegedly created fictitious accounts to hide over Rs 6,700 crore in loans extended to the almost-bankrupt HDIL. Taking serious note of the fraud, the RBI had on September 23, 2019 imposed regulatory restrictions on the bank.
J&K Bank scam: The Jammu and Kashmir Anti-corruption Bureau (ACB) in August this year unearthed a fraud case in the Jammu and Kashmir Bank worth crores of rupees. The ACB produced its first charge sheet in the special anti-corruption court against 23 officials of the Jammu and Kashmir Bank for making illegal appointments in the premier financial institution. The politicians who reportedly influenced the bank officials to make illegal appointments were allegedly former Chief Minister Mehbooba Mufti and some former ministers of the then PDP-BJP state government. With a network of over 450 branches, the J&K Bank has the largest presence in the financial sector of Jammu and Kashmir and is seen as the commercial backbone of the Union Territory.
Lakshmi Vilas Bank scam: The Reserve Bank of India (RBI) in September this year initiated prompt corrective action for the troubled Lakshmi Vilas Bank (LVB) after it unearthed a fraud in the bank. Prior to this, the Economic Offences Wing of Delhi Police was probing allegations of cheating and criminal breach of trust against its directors of the board. FIR was registered under complaint for offences of cheating, criminal breach of trust by banker, criminal misappropriation and criminal conspiracy under the Indian Penal Code 1860. Established in 1926, LVB is one of the old private sector banks based out of Tamil Nadu.
Maharashtra State Cooperative Bank scam: NCP leader Ajit Pawar was caught in a fraud case in Maharashtra State Cooperative Bank scam. Recently, the Bombay High Court had ordered lodging an FIR against Pawar and over 70 others in the Rs 1,000-crore scam in the bank. Ajit Pawar and others are accused of being complicit in causing the MSCB losses to the tune of Rs 1,000 crore between 2007 and 2011.
IDBI Bank loan scam: After a fraud case was unearthed in the IDBI Bank in connection with a loan, Enforcement Directorate in February said it has attached assets worth Rs 224.6 crore of a firm linked to former Aircel promoter C Sivasankaran in connection with a money-laundering probe in an alleged multi-crore loan fraud at IDBI Bank. The case pertains to loans of Rs 322 crore and Rs 523 crore given to the companies of Sivasankaran. The loans later turned non-performing assets.