In Pictures: Here are some of the key scams that emerged in 2019

SUMMARY

2019 saw scams worth thousands of crores in India. While court proceedings are underway in a number of cases, here's a list of some of the top scams of the year.

By Moneycontrol NewsDec 12, 2019 6:53:28 PM IST (Published)

PMC Bank scam case | In September, the Punjab & Maharashtra Cooperative Bank (PMC Bank) was put under restrictions by Reserve Bank of India after an alleged Rs 4,355 crore scam came to light. The bank remains under an RBI administrator due to under-reporting of dud loans. Multiple persons including promoters of realty group Housing Development and Infrastructure (HDIL) and top bank officials have been arrested in connection with the scam. The bank allegedly gave loans which turned sour with a shift in the fortunes of the now-bankrupt company.

Karvy case | The stockbroking company allegedly violated market regulations to obtain loans from banks and NBFCs. It reportedly used clients' shares as collateral and diverted funds to its real estate subsidiary. Initial findings suggest that securities worth Rs 2,300 crore were pledged to get loans and as many as 95,000 clients have been affected. Karvy has now been barred by the market regulator from trading on exchanges and accepting new clients.

Goodwin Jewellery case | Mumbai Police have lodged cases against proprietors of Goodwin Group for allegedly fleeing with investor money. The scam came to light in October after several investors informed the police that a group's branch near Mumbai remained shut. The company was running monthly and fixed deposit investment schemes, reports suggest. (Representative image: Reuters)

DHFL scam case | The Serious Fraud Investigation Office is investigating alleged financial irregularities at the mortgage lender Dewan Housing Finance Ltd (DHFL) after finding instances of possible fund diversions. The company came under scanner after allegations that the company had siphoned Rs 31,000 crore in bank loans through layers of shell entities.

Indiabulls Housing Finance case | The company was accused of siphoning Rs 98,000 crore of public money. A petition was filed before the Supreme Court in June seeking legal action against the company, its chairman and directors. It was alleged that the chairman and the directors siphoned the money for personal use. The legal proceedings in the matter are currently underway.

IMA Ponzi scheme case | A multi-crore scheme run by Karnataka-based I-Monetary Advisory (IMA) and its group entities allegedly duped lakhs of people by promising them higher returns using Islamic ways of investment. The Central Bureau of Investigation (CBI) is currently investigating the case and has filed at least three FIRs.