In the fiscal year 2023, the Reserve Bank of India (RBI) documented bank frauds exceeding 302.5 billion rupees, equivalent to INR 30,000 cr. While this marked a decrease from the 1.3 trillion rupees reported in 2021, signifying a reversal in the trend of escalating bank frauds in India over the past decade, both in terms of the total number of frauds and their monetary value[1], the current figure is still staggering and citizens need to keep caution to protect their financial interest. An additional study revealed a notable 69% of online fraud cases among Indian consumers in 2021, as reported in the Microsoft 2021 Global Tech Support Scam Research. The data from the Reserve Bank of India (RBI), while potentially excluding numerous undetected frauds, indicated a total value of scams amounting to 60,414 cr in the fiscal year 2021–2022. In the landscape of India’s financial sector, 2023 has been marked by a surge in sophisticated scams that exploit evolving technologies and capitalize on unsuspecting individuals. From the pervasive rise of UPI-related frauds to the cunning schemes enticing victims with unrealistic investment returns, the financial realm has witnessed a diverse array of fraudulent activities. QR code scams, part-time job deceptions, and the alarming emergence of courier scams targeting the youth have added new dimensions to the threat landscape. Additionally, the omnipresence of malware-driven cybercrimes and the persistent challenge posed by tech support scams further underscore the need for heightened vigilance in navigating the intricate landscape of financial transactions. This overview delves into the top financial scams of 2023, shedding light on the methods, trends, and impacts that define the evolving face of financial fraud in the country.

1. Scams In India
Scam 1992
Vijay Mallya Loan Default Scam
Scam 2003

3. Scam 1992
• Harshad Mehta, known as the "Big
Bull," was a prominent stockbroker in
the Bombay Stock Exchange during the
late 1980s and early 1990s.
• His aggressive trading strategies
and manipulation tactics led to a
colossal financial scandal.

4. Scam 1992
• Mehta and associates borrowed large
sums from banks, using the funds to
buy stocks primarily from banking
and financial sectors.
• Manipulated stock prices through
circular trading and "pump and dump"
strategies, creating artificial demand.
• Sold off their stocks at inflated prices,
causing a collapse, resulting in
massive losses for other investors.

5. Scam 1992
• Mehta used fake bank
receipts as collateral to
borrow money, showing
government securities held
in his name.
• These fraudulent receipts
helped siphon off funds
from the banking system.
This Photo by Unknown Author is licensed under CC BY-SA

6. Scam 1992 The Fallout:
• Exposed weaknesses in
India's financial regulatory
system.
• Led to reforms such as the
establishment of the
National Stock Exchange
(NSE) and the Securities and
Exchange Board of India
(SEBI).
• Eroded public trust in the
stock market and financial
institutions.
Legal Actions:
• Mehta and associates
faced criminal charges
and arrests.
• Many banks and financial
institutions suffered
substantial losses.
• Ongoing legal battles and
Mehta's death in 2001
amidst the proceedings.

7. • Vijay Mallya is an Indian
businessman and former
member of Parliament (Rajya
Sabha). Vijay Mallya also
owns Royal Challenger
Bangalore – IPL Team.
• He also Diversified the
business of the company by
acquiring many other
companies. He acquired
Berger Paints which is an
Indian Paint company.

8. Vijay Mallya Scam
• Vijay Mallya wants to expand his liquor and
Airline business. His advisors advise him not
to do this but despite his advisor’s advice, he
does the same.
• Vijay Mallya’s kingfisher becomes India’s no.1
domestic airline company and first choice of
every passenger.
• Due to some restrictions, the Indian
Government did not allow kingfishers to fly
international flights.

9. Vijay Mallya Scam
• To run this business he continuously took loans
from banks. He took loans of 9000 crores by
17 banks.
• Although SBI has declared them as bankrupt
other banks kept lending him loans because he
was a member of Rajya Sabha and some
parties supported him.
• In 2012 the company had to shut down its
operation. Vijay Mallya had a loan of 9000
from different banks and he denied to pay this
loan.

10. Vijay Mallya Scam
United Breweries Resignation:
• United Breweries forced Mallya to
resign as chairman of United Spirits.
• Offered him $75M as severance
payment, but Indian courts blocked the
transaction.
Current Status:
• Mallya's extradition to India
was requested, and a UK
court ruled in favor, but he
appealed.
• Ongoing legal battles and
debates about financial
regulations and corporate
governance.

11. SCAM 2003

12. Introduction
• The Stamp Paper Scam, also known as the Telgi Scam, was a financial scandal that
started in 1992 and came to light in 2003
• The scam involved a sophisticated counterfeit stamp paper racket that spanned
paper racket that spanned several states in India and was valued at over Rs
was valued at over Rs 30,000 crore.
• It led to the conviction of Abdul Karim Telgi, the mastermind behind the scam.

13. Who was Abdul Karim Telgi?
• Abdul Karim Telgi was born in Belgaum,
Karnataka, on July 29, 1961.
• Telgi supported his own education by
selling fruits and vegetables on trains and
eventually moved to Saudi Arabia.
• He began his career as a counterfeiter upon
returning to India after seven years. He
created fake passports and documents to
export labour from India to Saudi Arabia
through his company, Arabian Metro Travels.
He eventually moved on to counterfeiting
stamp papers.

14. What is stamp paper?
• There are two types of stamps – Judicial
and Non-Judicial stamps.
• When one is required to pay court fees in
civil cases, this is done in the form of
judicial stamps, as cash and cheques are
not acceptable forms of payment.
• Non-judicial stamps, on the other hand, are
used when drafting any agreement, such as a
rent agreement,etc.
• Stamp papers are sold by the government and
carry various denominations, including Rs
10, Rs 100, and Rs 500, with the
corresponding fee paid to the state
governments

15. What was the Stamp Paper Scam?
• Beginning in 1992, Telgi's scam had two aspects. One was to
produce counterfeit stamp documents. The second was to generate a
shortage of stamp paper that would create the right opportunity
for Telgi to supply the counterfeit.
• According to investigations, Telgi's team bribed officials of the
Indian Security Press in Maharashtra to help create an artificial
scarcity of documents and obtain machinery and printing material
to create the fake papers.
• The fake documents included stamp papers, judicial court fee
stamps, revenue stamps, stamps, foreign bills, broker's notes,
insurance policies, share transfer certificates ,etc.

16. How was the scam uncovered?
• On August 19, 2000, two men
transporting counterfeit stamp
papers were arrested in Cottonpet,
Bengaluru, according to a report by
the Quint. During the
interrogation, the men exposed the
scam, which led to raids across
Bengaluru that uncovered
counterfeit stamp paper and other
legal documents that amounted to
more than Rs 9 crore. Abdul Karim
Telgi was just one of the suspects
who had absconded.

17. Arresting the mastermind behind
the scam
• Telgi, mastermind of the Stamp Paper Scam, faced cases from 1992-2002, with minimal
consequences.
• Arrested in 2001 during a pilgrimage, Telgi's claim of high-ranking official involvement led to
"STAMPIT" investigation.
• Once a charge sheet against Telgi was filed by the Central Bureau of Investigation (CBI) in 2004, he
was moved to prison, and the SIT was not able to interrogate him properly.
• Telgi reportedly continued his operations from prison, and in 2017, the High Court convicted two
prison officials for supplying mobile phones to Telgi, according to the Quint.
• Telgi's scam spanned throughout the 1990s through the support of government officers and officials.
• The Special Investigation Team (SIT) conducted an enquiry report, also known as the Jaiswal report,
in November 2002,

18. Impact of Telgi Scam
Public sector bank became more responsible
Government verified the stock of Stamp Papers with Authorized
vendors.
Bank managers ensures that further transactions are proper.