CHAPTER – 1

INTRODUCTION ON FINANCIAL SCAMS

1.1- What are Scams?

A fraudulent scheme performed by a dishonest individual, group, or company in an

attempt obtain money or something else of value. Scams traditionally resided

in confidence tricks, where an individual would misrepresent themselves as someone

with skill or authority, i.e. a doctor, lawyer, investor. After the internet became widely

used, new forms of scams emerged such as lottery scams; scam

baiting, email spoofing, phishing, or request for helps. These are considered to be

email fraud. Also see phishing, scheme.

A scam is a dishonest attempt to trap you into parting with your money. A 'scammer'

may make a personal approach, with an offer too good to be true. Someone may email

you, phone, text-message or post an offer that they press you to take up. Scams can

reach their target audience in many ways, ranging from a one-person door-stepping

operation, through to multinational highly sophisticated telemarketing scams.

Advertisements, direct mail, text messaging, phone calls and e-mail are all widely

used, However SCAM means when a person tries to deceptively cheat you by first

giving you a very good offer about something but later on you would be shocked to

know that the person was simply bluffing and you have lost your money. An example

of this can be the lottery scam. For example a person calls or emails you and tells you

1
that you have won a lottery prize but to get the money there is a small processing fee,

you have to pay that fee and then the money would be sent to you.

1.2 - The Top Financial Scams in India:

1. ICICI Bank Scam.

2. 2G Spectrum Scam

3. Commonwealth Games Scam

4. Satyam Scam

5. Telgi Scam

6. Bofors Scam

7. The Fodder Scam

8. The Hawala Scandal

9. IPL Scam

10. Harshad Mehta Stock Market Scam

11. Ketan Parekh Stock Market Scam.

2
 1.3- History of Financial Markets

Financial Market describes any marketplace where buyers and sellers participate in

the trade of assets such as equities, bonds, currencies and derivatives. Financial

markets are typically defined by having transparent pricing, basic regulations on

trading, costs and fees and market forces determining the prices of securities that

trade.

Some financial markets only allow participants that meet certain criteria, which can

be based on factors like the amount of money held, the investor’s geographical

location, knowledge of the markets or the profession of the participant.

Financial markets provide channels for allocation of savings to investment. These

provide a variety of assets to savers as well as various forms in which the investors

can raise funds and thereby decouple the acts of saving and investment. The savers

and investors are constrained not by their individual abilities, but by the economy’s

ability, to invest and save respectively. The financial markets, thus, contribute to

economic development to the extent that the latter depends on the rates of savings and

investment.

The Two major Components of Financial Markets

 Money market

 Capital market.

Money market is a segment of the financial market in which financial instruments

with high liquidity and very short maturities are traded. The money market is used by

participants as a means for borrowing and lending in the short term, from several days

3
 to just under a year. Money market securities consist of negotiable certificate of

deposists (CDs), bankers acceptances, U.S. Treasury bills, commercial paper,

municipal notes, Eurodollars, federal funds and repurchase agreements

(repos). Money market investments are also called cash investments because of their

short maturities. The money market is used by a wide array of participants, from a

company raising money by selling commercial paper into the market to an investor

purchasing CDs as a safe place to park money in the short term. The money market is

typically seen as a safe place to put money due the highly liquid nature of the

securities and short maturities. Because they are extremely conservative, money

market securities offer significantly lower returns than most other

securities. However, there are risks in the money market that any investor needs to be

aware of, including the risk of default on securities such as commercial paper.

Capital Market is one in which individuals and institutions trade financial securities.

Organizations and institutions in the public and private sectors also often sell

securities on the capital markets in order to raise funds. Thus, this type of market is

composed of both the primary and secondary markets. Any government or

corporation requires capital (funds) to finance its operations and to engage in its own

long-term investments. To do this, a company raises money through the sale of

securities - stocks and bonds in the company's name. These are bought and sold in the

capital markets.

4
 The capital markets have two major components:

 Primary market

 Secondary market

Primary Market issues new securities on an exchange. Companies, governments and

other groups obtain financing through debt or equity based securities. Primary

markets, also known as "new issue markets," are facilitated by underwriting groups,

which consist of investment banks that will set a beginning price range for a given

security and then oversee its sale directly to investors. The primary markets are where

investors have their first chance to participate in a new security issuance. The issuing

company or group receives cash proceeds from the sale, which is then used to fund

operations or expand the business.

The primary market consists of:

 Public and rights issue

 Euro issues

 Private placements

Public and rights issue:

An issue of rights to a company's existing shareholders that entitles them to buy

additional shares directly from the company in proportion to their existing holdings,

within a fixed time period. In a rights offering, the subscription price at which each

share may be purchased in generally at a discount to the current market price. Rights

are often transferable, allowing the holder to sell them on the open market.

5
 Euro issues:

Newly public companies that want to raise more money tend to issue this type of

stock. Euro equity is a term used to describe an initial public offer occurring

simultaneously in two different countries. The company's shares are listed in various

countries rather than where the company is based. This method differs from cross-

listing where company shares are listed in the home market and then listed in a

different country. Euro equities are sometimes European securities sold on several

national markets. Also referred to as Euro equity Issue.

Private placement:

The sale of securities to a relatively small number of select investors as a way of

raising capital. Investors involved in private placements are usually large banks,

mutual funds, insurance companies and pension funds. Private placement is the

opposite of a public issue, in which securities are made available for sale on the open

market.

Secondary Market is where investors purchase securities or assets from other

investors, rather than from issuing companies themselves. The Securities and

Exchange Commission (SEC) registers securities prior to their primary issuance, then

they start trading in the secondary market on the New York Stock Exchange, Nasdaq

or other venue where the securities have been accepted for listing and trading.

The secondary market consists of:

 OTC MARKET

 Securities exchanges

6
 OTC MARKET:

The over-the-counter (OTC) market is a type of secondary market also referred to as a

dealer market. The term "over-the-counter" refers to stocks that are not trading on a

stock exchange such as the NASDAQ, NYSE or American Stock Exchange (AMEX).

This generally means that the stock trades either on the over-the-counter bulletin

board (OTCBB) or the pink sheets. Neither of these networks is an exchange; in fact,

they describe themselves as providers of pricing information for securities. OTCBB

and pink sheet companies have far fewer regulations to comply with than those that

trade shares on a stock exchange. Most securities that trade this way are penny stocks

or are from very small companies.

SECURITIES EXCHANGES:

Regulated financial market where securities (bonds notes, shares) are bought and sold

at prices governed by the forces of demand and supply. Stock exchanges basically

serve as

(1) Primary markets where corporations, governments, municipalities, and

other incorporated bodies can raise capital by channeling savings of the investors into

productive ventures

(2) Secondary markets where investors can sell their securities to other investors

for cash, thus reducing the risk of investment and maintaining liquidity in the system.

Stock exchanges impose stringent rules, listing requirements, and statutory

requirements that are binding on all listed and trading parties.

7
 CHAPTER -2

RESEARCH METHODOLOGY

The chapter represents the methodological foundations. It also focuses on the issues
that are relevant to this study.This is followed by the research design, methodology
and limitations. Research is used in this study in order to identify the scams in India.

2.1- Type of Research

The Method used is Interview of a Company Director & its Employees.

1- Collection of Data:

1.2- Primary Data:

Interview

Structured Questionnaire

1.3- Secondary Data:

a. Books

b. Articles & Research Papers

c. Internet

2- Sampling unit:

8
The Study population includes the Employees of Private Company and its
Director.

Sample Size
To get opinion from Employees of Company and sample of 12 Employees
along with the CEO of a Company were elected basing on convenient
sampling.

9
 2.2- Objectives of the Study

1. To identify different types of Scams in India.

2. To review existing Scam controlling mechanism.

3. To examine some of the major misdemeanors this perpetuated in the financial

system in India. \

4. To Understand the financial regulatory measures which have been adopted after
the 1991 share scam in India and why despite such measures adopted a security
scam has recurred in 2018.

5. To Examine the theoretical structure of corporate governance for analyzing

security scams that have occurred in the new millennium.

6. To Suggest preventive and fraud control measures with the help of research data
analysis

10
 2.3- Hypothesis of the Study

The following ten null hypotheses are formulated on the basis of objectives
formulated for the study:

H1o: Scams exposure faced by Indian companies and areas that need more stringent
anti Scam regulation are independent of each other

H2o: The selection for mechanism used for discovering Corporate Scams is
independent of the individual profile

H3o: The selection methods used by companies to condense scams is independent of

the individual profile

H4o There is no significant correlation in exploitation due to untrained personnel for

Companies

H5o There is no significant correlation in exploitation due to failure to conduct

periodic checks for culprit and the Victim.

H6o: Gender and tolerance level are independent.

H7o: Age and tolerance level are independent.

H8o: Education and tolerance level are independent.

H9o: Income and tolerance level are independent. H9o There was a statistically
significant difference between means for attitude towards scams happening every
year.

H10o: There is no significant punishments to be given for culprit and Companies

involved.

11
 2.4- Limitations

Best possible efforts have been made to guarantee that the research is planned and
carried out to optimize the capability to accomplish the research objectives. However
there are some limitations that may not authenticate the research however it needs to
be acknowledged.

1. One of the basic assumptions of this research is that the all Employees are
knowledgeable for inspecting their perceptions regarding Scams. Certain topics in the
study concentrate on perceptions and attitude of various respondents.

2. The evaluation done for data analysis is based on the primary data produced with
the help of questionnaire and its findings depend completely on the accurateness of
such data.

3. Different experts have special views on estimating attitude and perceptions. The
views that have been used for the current purpose cannot be declared as absolute and
perfect.

4. Sample taken perception is from Mumbai city only. The results of this study cannot
be generalized to Employees of other regions. Expert Interview taken is also not done
for all the companies so again it cannot be generalized to all the experts.

12
 2.5 - The Scope of Financial Scams in India

Without accurate and reliable estimates of Scams, it is difficult to understand what

works or does not work to protect victims from harm. Unfortunately, current estimates
of scams prevalence vary widely, making it difficult for law enforcement, researchers,
and policymakers to appreciate the true scope of the problem.

1) Geographical: Talking about the scope of study this project is applicable to whole
India, applicable to financial Institutions and companies which are in competition
globally.

2) Temporal: The Study has covered the analysis and Interpretation of data from the
period of decades.

3) Theoretical: This topic clearly focuses on study of Financial Scams and the
measurements taken to curb Scams.

13
 Chapter- 3

Literature Review

Literature Review
1. Kartik Athreya, Felicia Ionescu and Urvi Neelakantan in there study
entitled, “Stock Market Participation:The Role of Human Capital” examined
how human capital investment is significant for most individuals, while stock
market participation is limited, especially early in life.

2. Dr. Gautham Udupain in his study entitled, “Multinational Firms, Trade,

and the Trade-Comovement Puzzle” ,examined Existing empirical studies
which shows a strong positive correlation between bilateral trade and business
cycle comovement within country-pairs.

3. Yan Li in his study entitled, “Relationship Bank Behavior During Borrower

Distress studied the existing pattern of financial instruments in India and the
performance of middle class investors, their behaviour and problems.

4. Security Exchange Board of India (SEBI) along with National Council of

Applied Economic Research (NCAER), (2007), conducted a comprehensive
survey of the Indian investor households entitled, “Survey of Indian
Investors”, in order to study the impact of the growth of the securities market
on the households and to analyze the quality of its growth.

5. Anand Srinivasan and Takeshi Yamada conducted a study entitled, The

Effect Of Government Bank Lending: Evidence From The Financial Crisis In

14
 Japan in order to study the stock market literacy of the investors about the
company, stock exchanges as well as capital market regulatory bodies The
study also revealed that awareness differs among different groups of investors.

6. Selvam M, (2008), in their study entitled, “Equity Culture in Indian Capital

Market’, examined the need for promoting equity culture, which deserves
special attention for the development of economic growth. The study
discussed in detail the current trend of equity culture, its implications and its
revival and remedial measures. The study analyses the results of the survey as
a whole and based on selected socio-economic and investments profile factors
such as investors’ age, gender, family income, type and category of investors,
and market experience of the investor to determine whether there are any
differences in their risk-return ratings in the stock market investments.

7. Shanmugam, R. and Muthuswamy, P, (1998), in their study on “Decision

Process Individual Investors”, studied the views of individual share investors
on their investment objectives, basic approach to investment decisions and the
nature of their equity portfolio.

8. Rajarajan V, (2000), conducted a study on “Investors Life Styles and

Investment Characteristics”, with the objective of analyzing the investors life
styles and to analyze the investment size, pattern, preference of individual
investors on the basis of their life styles. Data was collected from investors in
Madras using questionnaire method. The investors were classified into 3
groups’ viz., active investors, individualists and passive investors.

9. Shobana V.K. and Jayalakshmi J, (2009), in their study on “Investor

Awareness and Preferences” revealed that real estate, bank deposits and
jeweler were the preferred investments.

15
 10. Viswambharan A.M, (2009), in his study on “Indian Primary Market –
Opportunities and Challenges”, examined the recent trends in primary market,
the current IPO system – book building process, opportunities for investors,
problems faced by the investors and suggested that investors should rely on
long term investment than speculation.

11. The National Council of Applied Economic Research (NCAER) 1 Survey of

households,(1964), entitled “Attitudes Towards and Motivations for Saving”
provides one of the earliest attempts on the study of savings of households.
The survey covered a sample of 4650households spread over India. It provides
an insight into the attitude towards and motivations for savings of individuals.
One of the key findings was that the investment in securities was preferred
only by the high-income households.

12. Gupta2, (1987), conducted a study entitled, “Geographic Distribution of

Equity and Bond Ownership”, in India. This study established that, contrary to
the general belief, semi-urban and rural areas constituted a negligible
proportion of the shareholding population of India. Equity shareholding has
remained, by and large, an urban or rather a metropolitan phenomenon in
India. Besides this, a ‘regional pull’ effect, that is a strong local preference
among investors towards the companies registered in their home state, was
also found by the study.

13. Jawaharlal3, (1992), in his study entitled, “Understanding Indian Investors”,

identified the behaviour of individual investors using questionnaire method.
The study covered major cities of India. 1200 shareholders and debenture
holders were selected at random for the study. The study revealed that Indian
investors generally invested in more than 5 companies and preferred a larger
portfolio. They lacked knowledge and experience in accounting matters. There
was a strong positive association between level of understanding and volume

16
 of shareholding. The study indicated that the disclosures made by the
companies need to be improved for the benefit of the investors.
14. Gupta. LC5, (1998), carried out a study entitled, “What Ails the Indian Capital
Markets? To find out the problems associated with the Indian Capital Market.
Three hundred middle and upper middleclass households were selected at
random and were interviewed for the study. The study stated that majority of
the respondents were not satisfied with the company management and the
statutory auditors. Majority of the investors did not have much confidence
even with the regulatory agencies. Many respondents had complaints against
companies rather than stock brokers.

15. Santi Swarup K7, (2008), in his study entitled, “Role of Mutual Funds in
Developing Investor Confidence in Indian Capital Markets”, identified safety
and tax savings as the important factors affecting investment in various
avenues by the investor and developed strategies for enhancing common
investor confidence such as good return, transparency, investor education,
guidance etc.

17
 Chapter 4

4.1 Company Profile

Ascent Networks.Pvt.Ltd

Ascent Networks Pvt. Ltd. is turnkey solution provider in the areas of IT, Networking,
IP CCTV Surveillance, Telecom, Fire Alarm Systems, Gas Detection Systems, etc.
Established in 1992, as a small company offering telecom solutions, today with 25+
years of much-needed experience gained while handling the most critical issues faced
by our valued customers, we have spanned all across India having installations with
prestigious and well known customers.

The organization of is headed by our Director Mr. Ajaykumar B. Bubna (M.S.E.E.

from USA, BE Electronics Instrumentation, Mumbai) a Postgraduate in the field of
Telecommunications, Digital Signal processing and Fibre Optics with industry
experience of more than 25 years.

There operations span all across India and they serve prestigious customers in various
verticals like Government, Oil & Gas, Hospitality, Transportation, Corporates, etc.

They have complete in-house capability to provide Integrated Solutions delivering

complete end-to- end solutions, right from design, to equipment specification, to
installation and commissioning, to maintenance and services.

In order to achieve highest levels of satisfaction to our customers they are

strategically associated with the world’s best companies in their respective fields of
business. We work very closely with Original Equipment Manufacturers to address
our customers’ problems and provide effective solutions at the lowest possible cost.

They are a One-Stop- Shop to overcome your pains for Design, Consultation,
Engineering, Integration, Implementation, Procurement and successful
Commissioning of a plethora of product solutions as wide and varied as IT,
Networking, Telecom, CCTV Surveillance, Instrumentation, Fire & Gas Detection
Systems.

18
 4.2 - Case Studies

CASE STUDY-I :(SATYAM SCAM)

 Introduction on satyam computer services ltd:

 Satyam Computer Services Ltd.

Is a consulting and information technology services company based in Hyderabad,

India .It was found in 1987 by B.Ramalinga Raju.

The company offers information technology (IT) services spanning various sectors,

and is listed on the New York Stock Exchange and Euro next. It is considered as an icon

among the IT companies and at one point had over billion dollar revenue. Sat yam’s

network covers 67 countries across six continents. The company employs 40,000 IT

professionals across development centers in India, the United States, the United

Kingdom, the UAE, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and

Australia. It serves over 654 global companies, 185 of which are Fortune 500

corporations.

Satyam has strategic technology and marketing alliances with over 50 companies’

.Apart from Hyderabad; it has development centers in India at Bangalore, Chennai,

Pune, Mumbai, Nagpur, Delhi, Kolkata, Bhubaneswar, and Visakhapatnam.

 Satyam Maytas Fiasco:

19
 Satyam Computers had on December 16, 2008, announced that it will acquire two

group firms - Maytas properties and Maytas Infra. The BOD of Satyam had approved

the founder’s proposal to buy 51 per cent stake in Maytas Infrastructure and 100 % in

Maytas Properties. The total outflow for both the acquisitions was expected to t be

US$ 1.6 bn comprising of US$1.3 bn for the 100% stake in Maytas Properties and

US$ 0.3 bn for the 51% stake in Maytas Infra.This is the move that sparked a row

over alleged violation of corporate governance laws. This deal is not profitable for

investor’s .So after this announcement they started to raise their voices against the

deal.

 Maytas infrastructure:

The company is run by the sons of Ramalinga Raju .It was started in the late 1980’s by

Ramalinga Raju. The main reason for the debacle of Maytas Infra is due to the debacle

of Satyam.

 Maytas properties:

One of the reasons for the debacle of Maytas properties is the ongoing economic

slowdown. The company has huge land banks and the prices have dropped down in

the real estate significantly.

 ANALYSIS:

The truth is as old as the hills" opined Mahatma Gandhi, So a company named

"Satyam" (Truth, in Sanskrit) inspired trust, Satyam Computer’s is a multinational

company established in 1987 by B.Ramlinga Raju in Hyderabad, India. Company

offered information technology (IT) services spanning various sectors all over the

world & was very well known in Stock Exchange with an increasing price of the

20
 shares of company. Satyam network covered around 67 countries across six

continents with 40,000 IT Professionals working in India, US, UK, UAE, Canada,

Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia. It even serves 654

global companies. Within no time, business was booming. Andhra Pradesh, of which

Hyderabad is the capital, has one of the largest pools of skilled manpower in India.

Satyam would prove a doughty competitor to its rivals, pricing its services so

aggressively that some thought it was prepared to go with minimum profits in order to

gain customers. And it expanded aggressively overseas. When he opened his Sydney

office a few years ago, he occupied premises vacated by a top global IT firm. In China

, provincial leaders vied to invite Satyam to set up operations in their areas. But once

Mr. Raju sold shares to the Indian public in 1992 and later, went for a New York

listing in 2001, pressure grew on him to improve the company’s performance. Ever

competitive, he was also in rush to catch the market leaders, Tata Consultancy

Services, Infosys Technologies and Wipro. Raju was obsessed with getting past the

billion-dollar sales mark. When he got there, he wanted to post US$2 billion .Satyam

posted US$2.1 billion (S$3.1 billion) sales in the year to March 31; 2008.With the

ever-rising pressure to perform, Satyam began doctoring the books to show bigger

profits by manipulating the balance sheet, process that began several years back. For

Satyam, the recent developments are a direct leftover of the past. In fact, the story is

about a decade old. In late 1999, India World — a largely unknown internet firm —

was acquired by Satyam group company, Satyam Info way, for an eye-popping Rs

500 crore. The consternation that accompanied this deal was not hard to comprehend.

India World had a top line of just Rs 1 crore and a net profit of an insignificant Rs 25

lakh. At Rs 500crore, Satyam Info way, later renamed Sify, was paying this

astronomical sum not just for India World but for a number of sites that came with it

21
— among them weresamachar.com, khel.com and khoj.com. The argument dished out

was based on the potential of the internet business and the logic of eyeballs was

driving this valuation story. One was not sure about the source of funds and how

much money went back to RamalingaRaju.A few months later in 2000, shareholders

of Satyam were an irate lot. At the annual general meeting (AGM) of thecompany in

Hyderabad in May 2000, shareholders accused Satyam of withholding facts and

claimed they were defrauded. This was after the merger of three subsidiaries —

Satyam Enterprise Solutions (SESL), Satyam Renaissance Consulting and Satyam

Spark Solutions — with Satyam Computer Services. Post merger, 8 lakh shares of

Satyam Computers were allotted to C Srinivasa Raju, who was then Satyam

Computers ‘executive director. Shareholders contended that SESL had made a rights

issue of 12 lakh shares at par just before this merger. A third of this was bought by

Satyam Computer while the remaining 8 lakh shares went Srinivasa Raju’s way after

they were renounced. Once shareholders of SESL were given shares in Satyam

Computers in a 1:1 proportion, Mr. Raju got 8 lakh shares at just Rs 10 each, when

the shares were trading at a whopping Rs 1,600. The management of Satyam

Computers, however, maintained that things were above board, though shareholders

thought otherwise. The seeds of accounting manipulation in Satyam were sown

several quarters before Ramalinga Raju’s communiqué to the board on Wednesday,

7th Jan-09. In 2002, the department of company affairs (DCA) was in receipt of a

slew of complaints from Satyam’s shareholders that there were accounting

irregularities in the company. Here, it was stated that Satyam’s directors invested

unwisely in subsidiaries that were underperformers. This merely facilitated the

process of tax evasion and employing methods such as writing off large amounts on

depreciation. At first blush, Raju’s statement to the board (Raja’s letter to the board

22
 Appended as Annexure I) in which he confesses to inflating profits appears a act of

contrition by a man who was willing to stand up and face the music for his

transgressions. If Raju was dressing up the bottom-line, it was only to boost the

company’s valuation and ensure that it stayed in the big league of IT services. A

higher valuation also enabled Raju to borrow more money against his shareholding.

 QUERIES:

 Why Mr. Raju Ramalinga manipulated the balance sheet?

Mr. Raju started doctoring the sheet simply to show superior performance and to be in

competition with the market leaders.

 Why satyam announced that it will acquire maytas infra and maytas properties?

Company announced Acquisition of 51% stake in Maytas Infra and 100% stake in

Maytas Properties on 16th Dec 2008 to hide the irregularities in the accounts which

were lasting from last few years.

 What management could do?

A) Restore the Management of the company & appoint some reputed people as BOD.

B) Try building confidence in clients to get back the lost projects.

C) It could also be merged with any other software company.

 How much was the actual fraud recorded?

His sheets recorded the following:

23
  Sundry Debtors 2651.6 CR Actual Debt was 2161;

Over stated 490 CR .

 Cash & Bank Balance 5312.62 CR Actual cash in bank was 321C.

 Interest on fixed deposits 376 CR.

No accured interest exists.

 L i a b i l i t y : Mr. Raju arranged Liability himself 1230 CR

 A total of 7136 CR.

 If satyam was fudging funds, where were the funds for all cash acquisition coming

from?

Sr. No Year Acquired Firm Profession Funding(Amount in $)1) Apr-05 UK based

Citisoft PLC Business Consulting Firm 38Mn(Paid in tranches)2) July-05 Singapore

based Knowledge Dynamics Consulting Solution Provider 3.3 Mn (All cash deal)3)

Oct-07 UK based Nikor Global Solutions Infrastructure based management services

and consultancy group 5.5 Mn (All cash deal)4) Jan-08 Chicago based Bridge

Strategy Group Management consulting firm 35.00 Mn (All cash deal)5) Apr-08

Caterpillar Inc Market research and customer analytics operations 95.5 Mn for both

deals (all cash purchase)S& V Management Consultants Supply chain management

firm.

 Satyam Scam who is to blame?

Who is guilty in this sordid state of events? MR. Raju is by far the father of this

fraud. But there were others who are also culpable.

24
 1. The auditors:

What were the auditing company, Price waterhouse Coopers, doing?

PwC has written a letter to the BOD of Satyam that its audit may be rendered

"inaccurate and unreliable" due to the disclosures made by Satyam's (ex) Chairman.

Since the Auditors do bank reconciliation to check whether the money has

indeed come or not. They check bank statements and certificates. So was this a

total lapse in supervision or were the bank statements forged? No one knows yet. The

company officials said they relied on data from the reputed auditors.

2. The promoters:

Since the promoters, in this case, held only about 8 percent shares, their idea to

push through the Maytas acquisition deal was defeated by an angr y lot of

shareholders.

3. The Sebi:

The Sebi had in December given a clean chit to Satyam in the probe on violation

of corporate governance law.

4. The bankers:

If the auditors were conned, it means that either the bank statement or certificates

were forged Satyam’s banks – ICICI Bank, HDFC Bank, Bank of Baroda, etc.

25
 5. The directors and independent directors:

Despite the shareholders not being taken into confidence, the directors went ahead

with the management’s decision.

6. The Government:

The government too is equally guilty in not having managed to save the shareholders,

the employees and some clients of the company from losing heavily.

26
 CASE STUDY –II (SECURITIES SCAM)

PART 1

 History of Harshad Mehta:

Harshad Mehta was born n 29thy July in a Guajarati Jain family. Moved from small

town Raipur to find his future in Mumbai. First job as dispatch clerk in new India

assurance. Worked with stock brokers and soon managed to get a broker’s card.

Soon started his own ventures grow more research and assets management company

ltd. He became a dream seller and celebrity of the financial world. People started to

address him as the” Big Bull of Market”. On April 23, 1992 journalist Suchita Dalal

in a column in the Times of India exposed the dubious ways of harshad Mehta. He

was later charged with 72 criminal offences and 600 civil actions were filed against

him. He died in 2002 due to a massive heart attack in a jail in thane, with much

litigation still pending against him.

 Overview of the scam:

This scam can be categorized as a Ca p ital market scam in which it is done

by manipulating the facts I n order to attain enormous profits. There were 4

different aspects of this scam: Diversion of funds

 Diversion of funds from the banking system to brokers for financing their

operations in the stock market.

27
 Intra-day trading-the modus operand mainly included investing heavily in certain

shares at the start of the day which led to a sharp increase in the price of the stock

and then cashing in at the end of the day to reap huge benefits.

 Following two aspects shall be explained in detail later .Use of Ready Forward

(RF) to maintain SLR Fake Bank receipts (BR).

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 Cr. from the banks

to stockbrokers from April1991 to May 1992. He caused the steep rise in the Stock

market index in the year 1992 by bidding at a premium for many shares.

Some of the stocks which were highly invested in by Harshad Mehta were:

 ACC Apollo Tyres.

 Reliance

 Tata Iron and Steel Co. (TISCO)

 BPL

 Sterlite

 Videocon

TABLE: 1

The graph shows the rise in the Sensex during the period when Harshad Mehta was

operational and putting in loads of money in the stock exchange increasing the

liquidity and thus arbitrary increase in the prices of some shares.:

28
 R E A D F O R W A R D ( R F )

 Disappearance of money:

It is becoming increasingly clear that despite the intensive efforts by several

investigating agencies, it would be impossible to trace all the money swindled from

the banks. At this stage we can only conjecture about where the money has gone and

what part of the misappropriated amount would be recovered. Based on the result of

investigations and reporting so far, the following appear to be the possibilities.

 A large amount of the money was perhaps invested in shares. However, since

the share prices have dropped steeply from the peak they reached towards end

of March 1992, the important question is what are the shares worth today? Till

29
 February 1992, the Bombay Sensitive Index was below 2000; thereafter, it

rose sharply to peak at 4500 by end of March 1992. In the aftermath of the

scam it fell to about 2500 before recovering to around 3000 by August

1992.Going by newspaper reports, it appears likely that the bulk of Harshad

Mehta's purchases were made at low prices, so that the average cost of his

portfolio corresponds to an index well below 2500 or perhaps even below

2000. Therefore, Mehta's claim that he can clear all his dues if he were

allowed to do so cannot be dismissed without a serious consideration.

Whether these shares are in fact traceable is another question.

 It is well known that while Harshad Mehta was the "big bull" in the stock

market, there was an equally powerful "bear cartel", represented by Hiten

Dalal, A.D. Narottam and others, operating in the market with money cheated

out of the banks. Since the stock prices rose steeply during the period of the

scam, it is likely that a considerable part of the money swindled by this group

would have been spent on financing the losses in the stock markets.

 It is rumored that a part of the money was sent out of India through the Havala

racket, converted into dollars/pounds, and brought back as India Development

Bonds. These bonds are redeemable in dollars/pounds and the holders cannot

be asked to disclose the source of their holdings. Thus, this money is beyond

the reach of any of the investigating agencies.

30
  A part of the money must have been spent as bribes and kickbacks to the

various accomplices in the banks and possibly in the bureaucracy and in the

political system.

 A part of the money might have been used to finance the losses taken by the

brokers to window-dress various banks' balance sheets. In other words, part of

the money that went out of the banking system came back to it. In sum, it

appears that only a small fraction of the funds swindled is recoverable.

After the scandal:

 Immediate impact :

After the Harshad Mehta scandal was exposed, April, 1992, the situation in share

market was that of utter chaos. The first impact of the scam was a steep fall in the

share prices. The index fell from 4500to 2500 representing a loss of Rs. 100,000

crores in market capitalization. However, the major damage to the stock market did

not stop here. Since the accused were active brokers in the stock markets, they had

traded a large number of shares during the previous year. All these shares became

tainted and worthless and could not be used in the market. This was a great loss to the

innocent investor who had bought these shares much before the scandal was exposed.

 Impact on Indian economy :

There was a lot of media coverage on the scam and the political parties left no

opportunity in criticizing the government for it. The government was under immense

pressure and its liberalization policies were severely criticized. It was also believed

31
that Harshad Mehta and his accomplices were behind framing of these policies. In the

end the government had to put the liberalization plans on hold. SEBI had to postpone

the sanctioning of private sector mutual funds. Implementation of some aspects of the

Narasimham Committee recommendations on the banking system had to be delayed.

The much talked about entry of foreign pension funds and mutual funds became more

remote than ever. The Euro-issues planned by several Indian companies were delayed

since the ability of Indian companies to raise equity capital in world markets was

severely compromised.

 Impact on the banks:

Fake bank receipts (BR) which were an integral part of the execution of the whole

scam landed the banks involved in a tight spot. These BR were declared void and

public money was at stake. At least ten prominent banks were involved in this; some

of them being SBI, Standard Chartered and a subsidiary of RBI. The scam could have

been checked in time with proper policies and verifications. The government, the RBI

and the commercial banks are as much accountable as the brokers for the scam. The

brokers were encouraged by the banks to divert funds from the banking system to the

stock market. The RBI too stood indicted because despite knowledge about banks

over-stepping the boundaries demarcating their arena of operations, it failed to check

them. Some of the prominent individuals who were penalized were K. M.

Margabandhu, CMD of the UCO Bank (Arrested and sacked) and V. Mahadevan, one

of the MD the State Bank of India (Suspended).

32
 CASE STUDY-II (SECURITIES SCAM)

PART-2

 History of Ketan Parikh:

Ketan Parikh is a former stock broker from Mumbai, India. He was convicted in 2008,

for involvement in the Indian stock market manipulation scam in late 1999-2001.

Currently he has been debarred from trading in the Indian stock exchanges till 2017.

He was trainee of Harshad Mehta. Ketan Parikh can be best described as the pied

piper of Dalal Street. Parekh came from a family of brokers which helped him to

create a trading ring of his own. A Mumbai based stock broker chartered accountant

by profession. Ketan Parikh took advantage in certain stocks which later came to be

known as ‘K-10’ STOCKS. He held significant stakes in the K-10 companies the

buoyant stock markets from January 1999 helped the K-10 stocks increase in value

substantially, as a result other brokers and fund managers started investing heavily in

these stocks.

 The K-10 Stocks:

 Aftek Infosys

 DSQ Software

 Global Telesystems

 Himachal Futuristic communications

 Pentamedia Graphics

 Satyam computers

 Silver line technology

 SSI

33
  ZEE Telefilms

 Pritish Nandy communications

 Development leading to Ketan Parekh scam:

On March 1st, 2001 a fall about 176 points was seen in the sensex. Prior day union

budget tabled prompted 177 sensex points increase. SEBI launched immediate

investigation on the notice of the current situations in the market. SEBI inspected the

books of several brokers suspected of triggering the crash. RBI ordered some banks to

furnish data of capital market exposure. BSE President Anand Rathi’s resignation

added to continued downfall of sensex. The situations opened debate over banks

financial capital markets operations, lending f funds against collateral security, dual

control of co-operative banks. Ketan parekh was arrested by CBI on 30th march 2001.

He was charged defrauding Bank of India by almost 20$ million. Then there was

another sensex fall of 147 points.

 Factors that helped Ketan Parekh:

Though Ketan Parekh was a successful broker, he did not have money to buy large

stakes as he held the stakes of more than RS.750 million in july1999, according to a

report. Analyst claimed that he had borrowed from various companies and banks for

this purpose. His financing method was fairly simple. He bought shares when they

were trading at low prices and saw the rise in the bull market while continuously

trading. When the prices were high enough he pledged the shares with banks as

collateral for funds, and also borrowed from the companies like HFCL.

34
 It could not have been possible without the involvement of banks. A small

Ahmadabad based bank, Madhavapura Mercantile Cooperative Bank (MMCB) Was

KP’s main ally in the scam. KP and his associates started tapping the MMCB for

funds in early 2000. In December 2000, when Ketan Parikh faced liquidity problem in

settlement he used MMCB in two different ways:

 First was the pay order route, where Ketan Parikh issued cheques drawn on bank

of India (BOI) TO MMCB, again which MMCB issued pay orders, the pay order

discounted at BOI.

 The second route was borrowing from MMCB branch at Mandvi (Mumbai) where

different companies owned by Ketan Parikh and his associates had accounts.

Ketan Parikh used 16 such accounts, either directly or indirectly through other

broker firms and obtains funds.

 Impact on Calcutta Stock Exchange:

Lack of regulations and surveillance on the bourse allowed a highly illegal and

volatile Badla business. Calcutta Stock Exchange had the third largest volumes in the

country after NSE & BSE. Calcutta stock exchange helped Ketan Parikh to cover his

operations from his rivals in Mumbai. Brokers at CSE used to buy shares at Ketan

Parikh behest. These brokers had to keep shares in their name and they were paid

2.5% weekly interest.

By February 2001, CSE were reduced to estimated Rs. 6-7 billion from their initial

worth of Rs.12 billion. Ketan Parikh’s Badla payments were not honored on time for

35
the settlement and about 70 CSE brokers defaulted on their payments. By mid-march,

the value of stocks went down further to around rs.2.5 -3 billion.

 Impact of the scam on financial institutions:

Ketan Parikh was threatening to sue the bank of India for defamation because it

complained of bouncing of 1.3 billion pay orders issued to the broker by Madhavpura

mercantile cooperative bank. Investigations by SEBI & CBI reveal that sheer

magnitude of money by Parikh was a staggering 64 billion.

 Working of Badla System:

The stock exchange acts as an intermediary between you and the actual lender. You

will be changed on interest rate for borrowing, which will be determined by the

demand for that stock under badla trading. Thus, higher the demand for Wipro under

badla trading higher will be the interest rate. You can keep your borrowing unpaid for

a maximum of 70 days, after which you will have to repay the badla financer through

the exchange.

 SEBI’s role after scam:

An additional 10% deposit margin was imposed on outstanding net sales in the stock

markets. The limit of application of the additional volatility margins was lowered

from 80% to 60%. To revive the markets SEBI imposed restriction on short sales and

ordered. It suspended all the broker member directors of BSE’s governing board.

SEBI also banned trading by all stock exchange presidents, vice presidents and

treasures. SEBI allowed banks for collateralized lending only through BSE & NSE.

36
  Conclusion:

 RS.2000 billion lost.

 Ketan Parikh was released on bail on May 2001.

 the retail investors were the worst hit

 SBI, BOI & PNB had to suffer huge losses

 MMCB also suffered huge losses around 400 crores.

37
 CASE STUDY –III (CRB SCAM)

 History of C.R.Bhansali:

Born in a jute trader's house in Calcutta, Bhansali was a studious person. After

obtaining a degree in commerce, Bhansali completed Chartered Accountancy in 1980.

In the same year, he started a financial consultancy firm, CRB Consultancy. Through

Bhansali's personal contacts, CRB Consultancy soon managed to secure the business

of providing issue management services to a few well-known companies in Calcutta.

Over the years, Bhansali acquired other degrees as well including ACS, Ph.D., MIIA

(US) and a diploma in Journalism. Though he made a lot of money, Bhansali found it

difficult to find recognition in Calcutta. He then moved to New Delhi to join one of

the country's leading registrars of companies. However when Bhansali was caught

short-charging the registrar's clients, he had to leave. Bhansali then established 'CRB

Consultants,' a private limited company in New Delhi in 1985. In 1992, the name of

the company was changed to CRB Capital Markets (CRB Caps) and it was converted

into a public limited company. The company offered various services including

merchant banking, leasing and hire purchase, bill discounting and corporate funds

management, fixed deposit and resources mobilization, mutual funds and asset

management, international finance and forex operations. CRB Caps was also very

active in stock-broking having a card both on the BSE and the NSE. The company

raised over Rs 176 crore from the public by January 1995. The A+ rating given by

CARE and upfront cash incentives of 7-10% attracted investors in hordes to

Bhansali's schemes.

38
 Table: 2

CRB CAPITAL MARKETS –KEY FINANCIALS:

 Overview of the scam:

Bhansali was reported to have specialized in setting up dummy investment

companies. He used to sell these dummy companies to buyers. He capitalized on the

1985 boom in leasing companies to become cash rich.

He had established good contacts in the Registrar of Companies and the Controller of

Capital Issues offices. He registered companies with practically no equity and then

stage-managed the dummy company's maiden public issue with a few hundred

investors, largely from Calcutta's close knit Marwari Jain community. Having had a

company listed on the stock exchange, Bhansali then sold it for a profit to

39
businessmen who needed dummy public limited companies in a hurry. Bhansali used

his own money to rig share prices in order to raise more money from the markets in

two ways. Firstly, he bought his own stock through private finance companies owned

by him. Secondly, he used his other public companies to buy into each other as cross-

holdings.

 Defrauding the SBI:

In May 1996, CRB Caps opened a current account in SBI's main Mumbai branch, for

payment of interest, dividend and redemption cheques. The payment warrants could

be presented at any of the 4,000 SBI branches for payment. However, Bhansali was

granted only a current account facility and did not enjoy any overdraft facility. He

was expected to deposit cash upfront into the current account, along with a list of

payments that had to be honored. Claiming that the logistics of payment were very

complex and that it was not possible for every branch to check with the head office

before honoring a dividend warrant, the branches gradually began treating these

instruments just like a demand draft. For about nine months, the setup worked very

well. However, in March 1997, SBI realized that the account had been overdrawn to

the extent of a few crores. Bhansali was called to the SBI office and asked to remit the

difference immediately, which he promptly did.

 The systemic rot:

The collapse of the CRB group seemed to be a fraud allowed by supervisors despite

the regulations in place. The lack of clear communication channels between the

40
banks, RBI and the government seemed to have worked to Bhansali's advantage to a

great extent. Frequent clashes occurred between RBI and SEBI in the media, with

both of them trying to prove how the other was responsible for not acting early

enough. The RBI claimed that it had no powers to examine the asset quality of the

CRB group and thereby was not in a position to pass any judgment on the character of

asset generation or deployment of the funds raised by the group. The bank further

claimed that the powers were granted only in March 1997, when the RBI Act of 1934

was amended to include specific provisions for the purpose. The bank also stated that

it had begun to examine the liabilities and not the assets. However, media reports

were quick to refute RBI's claims.

 The Doomed Depositors:

May 18, 1997 - hundreds of angry, frustrated and scared people stood outside the

Reserve Bank of India's (RBI) Mumbai headquarters under the scorching sun. They

were waiting for Chain Roop Bhansali (Bhansali), the head of the CRB Group of

companies to arrive.

Three days earlier the RBI had given Bhansali 72 hours to come up with a plan to

repay his liabilities following over 400 complaints from depositors in his company's

financial schemes. Most top officials of CRB were untraceable from the second week

of May itself. The Central Bureau of Investigation (CBI) locked and sealed the offices

of the CRB Group and arrested six persons, including four directors (two from

Bikaner and two from Mumbai) of the satellite companies of the group, a financial

controller in Mumbai and a relative and close associate of Bhansali in Delhi. The CBI

also conducted simultaneous searches at 16 places in Mumbai, three in New Delhi,

41
 one each in Chennai and Ahmadabad and two places each in Calcutta, Jhunjunu,

Sujangarh and Bikaner. The CBI froze the bank accounts of the group companies and

seized incriminating files and other documents from the residence of the vice-

president of the CRB group in Mumbai. Following rumors that Bhansali had fled

India and was hiding in Hong Kong or Canada, the CBI sought Interpol's assistance to

trace his whereabouts. RBI filed a winding-up petition claiming that the continuance

of the CRB Group was not in the interest of the public and depositors. The order

prohibited CRB from selling, transferring, mortgaging or dealing in any manner with

its assets and from accepting public deposits. In response, Bhansali sent a letter to the

RBI. Though it was not signed by him, the letter said that the RBI order had led to the

deterioration of the company's financial position. It added that the company was

facing tremendous problems with payments to fixed depositors. The letter further said

that 'we have, also expressed that in view of the precarious situation which is fast

going out of our control, before it becomes unmanageable, our case should be

considered sympathetically.' This letter led the investors to believe that Bhansali

would come out of hiding and work out a way to get out of the mess.

 Impact of the scam:

The CRB scam took the whole nation by storm. At one point, the Union finance

ministry held a meeting everyday to get to the bras stacks of the CRB fiasco. In a

meeting with SEBI, the finance minister criticized the regulator severely. The

government asked the RBI to prepare a panel of auditors asking to explore the

possibility of making auditing of NBFCs a prerequisite to registration. In October

1998, the SEBI appointed an administrator for CRB's Arihant scheme finalized a

42
 scheme for payment to the unit holders under the scheme; the investors were

prematurely paid Rs 4.95 per unit, which was its NAV as of 31 March 1998. When

the administrator had taken over, the assets of the scheme comprised the fund's frozen

bank accounts worth Rs 81 lakh, plus some dividends from investments. Besides,

there were a large number of listed (but thinly traded) and unlisted shares amounting

to Rs 17.5 crore.

43
 CASE STUDY IV

2G Spectrum Scam

What is 2G?

2G means: "Second Generation Wireless Telephone Technology"

2G is relatively new technology in field of mobile.
2G is not just a network but a good technology.
2G spectrums was the revolutionary technology in their time it comes with some more
benefits.

SMS facility was first started with network.

Safe for use, means security level was high.

Environmental conditions were very good for this network & no network
shortage was there.

INTRODUCTION

The 2G spectrum scam was a telecommunications scam and political scandal in which
politicians and government officials under the Congress government undercharged
mobile telephone companies for frequency allocation licenses, which they then used
to create 2G spectrum subscriptions for cell phones. The difference between the
money collected and that mandated to be collected was estimated by the Comptroller
and Auditor General of India at 1766.45 billion (US$27 billion), based on 2010 3G
and ₹BWA spectrum-auction prices. In a charge sheet filed on 2 April 2011 by the
Central Bureau of Investigation (CBI, the investigating agency), the loss was pegged
at 309845.5 million (US$4.7 billion). In a 19 August 2011 reply to the CBI, the
₹Telecom Regulatory Authority of India (TRAI) said that the government had gained
over 30 billion (US$450 million) by selling 2G spectrum. Minister of
₹Communications & IT Kapil Sibal said in a 2011 press conference that "zero loss"
wasincurred by distributing 2G licenses on a first-come-first-served basis.

Although the policy for awarding licenses was first-come, first-served, Raja changed
the rules so it applied to compliance with conditions instead of the application itself.
On 10 January 2008, companies were given only a few hours to supply Letters of
Intent and payments; some executives were allegedly tipped off by Raja, and they
(andthe minister) were imprisoned. In 2011 Time ranked the scam second on their
"Top 10 Abuses of Power" list, behind the Watergate scandal
On 2 February 2012, the Supreme Court of India ruled on public interest litigation

44
(PIL) related to the 2G spectrum scam. The court declared the allotment of spectrum
"unconstitutional and arbitrary", cancelling the 122 licenses issued in 2008 under

Raja (Minister of Communications & IT from 2007 to 2009), the primary official
accused. According to the court, Raja "wanted to favor some companies at the cost of
the public exchequer" and "virtually gifted away important national asset." The zero-
loss theory was discredited on 3 August 2012 when, after a Supreme Court
directive,the government of India revised the base price for 5-MHz 2G spectrum
auctions to 140 billion (US$2.1 billion), raising its value to about 28 billion (US$420
million)₹ per MHz (near the Comptroller and Auditor General estimate of 33.5
billion ₹(US$510 million) per MHz).

Accused parties

The selling of the licenses drew attention to three groups: politicians and bureaucrats,
who had the authority to sell licenses; corporations buying the licenses, and
professionals who mediated between the politicians and corporations.

Politicians

The following charges were filed by the CBI and the Directorate General of Income
Tax Investigation in the Special CBI Court.

Raja
Political career: Four-time DMK member of Parliament (present constituency
Nilgiris,
Tamil Nadu), former Union Minister of State for Rural Development (1999) and
Health and Family Welfare (2003), former Union Cabinet Minister for Environment
and Forests (2004) and Communication and Information Technology (2007 and 2009)

M. K. Kanimozhi
Political career: Daughter of five-time Chief Minister of Tamil Nadu M. Karunanidhi.
A DMK member of Parliament, representing Tamil Nadu in the Rajya Sabh

Bureaucrats
A number of bureaucrats were named in the CBI charge sheet filed in its Special
Court.

Siddharth Behura

Position: Telecom Secretary when the licenses were granted.

RK Chandolia

Position: Raja's private secretary when the licenses were granted

Executives
A number of executives were accused in the CBI charge sheet.

45
 Sanjay Chandra
Position: Former Unitech Wireless managing director
Gautam Doshi
Position: Managing director, Reliance Anil Dhirubhai Ambani Group

Hari Nair
Position: Senior vice-president, Reliance Anil Dhirubhai Ambani Group
Vinod Goenka
Position: Managing director, DB Realty and Swan Telecom

Shahid Balwa
Position: Corporate promoter, DB Realty and Swan Telecom
Sharath Kumar
Position: Managing director, Kalaignar TV

Ravi Ruia
Position: Vice-chair, Essar Group
Anshuman Ruia
Position: Director, Essar Group

Media role

Main article: Radia tapes controversy

OPEN and Outlook reported that journalists Barkha Dutt (editor of NDTV) and Vir
Sanghvi (editorial director of the Hindustan Times) knew that corporate lobbyist Nira
Radia influenced Raja's appointment as telecom minister,[84] publicising Radia's
phone conversations with Dutt and Sanghvi[85][86] when Radia's phone was tapped
by the Income Tax Department. According to critics, Dutt and Sanghvi knew about
the link between the government and the media industry but delayed reporting the
corruption

46
 CASE STUDY- V

COMMONWEALTH GAME SCAM

INTRODUCTION OF COMMONWEALTH

The Commonwealth Games (known as the British Empire Games

from 1930–1950,the British Empire and Commonwealth Games from 1954–1966,
and British Commonwealth Games from 1970–1974) is an international, multi-sport event
involving athletes from the Commonwealth. The event was first held in 1930, and, with the
exception of 1942 and 1946, which were cancelled due to World War II, has taken place
every four years since then.

The games are overseen by the Commonwealth games federation

(CGF), which also controls the sporting program and selects the host cities. A host city is
selected for each edition. 18 cities in seven countries have hosted the event. Apart from many
Olympic sports, the games also include some sports that are played predominantly in
Commonwealth countries, such as lawn bowls
and netball.
Although there are 53 members of the Commonwealth of Nations, 71 teams participate in the
Commonwealth Games, as a number of dependent territories compete under their own flag.
The four Home Nations of the United Kingdom—England, Scotland, Wales, and Northern
Ireland—also send separate teams. Only six countries have attended every Commonwealth
Games: Australia, Canada, England, New Zealand, Scotland, and Wales. Australia has been
the highest achieving team for twelve games, England for seven, and Canada for one.

HISTROY OF COMMONWEALTH

A sporting competition bringing together the members of the

British Empire was first proposed by the John Astley Cooper in 1891, when he
wrote an article in The Times suggesting a "Pan-Britannic-Pan-Anglican Contest and
Festival every four years as a means of increasing goodwill and good understanding of the
British Empire". The John Astley Cooper Committees worldwide (e.g. Australia) helped
Pierre de Coubertin to get his international Olympic Games
off the ground fast. In 1911, the Festival of the Empire was held at
The Crystal Palace in London to celebrate the coronation of King
George V. As part of the festival, an Inter-Empire Championships was held in which teams
from Australia,Canada, South Africa, and the United Kingdom competed in events such as
boxing,wrestling, swimming, and athletics.
In 1928,Melville Marks Robinson of Canada was asked to organize the first British Empire
Games; these were held in 1930, in Hamilton, Ontario and women competed in the swimming
events only.
From 1934, women also competed in some athletics events.The first Commonwealth
Paraplegic Games were held alongside the Commonwealth Games from 1962 to 1974.
Athletes with a disability were then first included in exhibition events at
the 1994 Commonwealth Games in Victoria, British Columbia and, at the 2002
Commonwealth Games, they were included as full members of their national teams,

47
makingthem the first fully inclusive international multi-sport games. This meant that results
were included in the medal count.

The Empire Games flag was donated in 1931 by the British Empire Games Association of
Canada. The year and location of subsequent games were added until the 1950 games. The
name of the event was changed to the British Empire and Commonwealth Games and the flag
was retired as a result.

MASTERMIND OF COMMONWEALTH SCAM

Suresh Kalmadi (born 1 May 1944) is an Indian politician and senior

sports administrator.He was formerly a member of the Indian National Congress. He
was a member of parliament from Pune
till May 2014.He is alleged to have been involved in corrupt practices in relation to
the 2010 Commonwealth Games during his tenure as president
of Association and chairman of Common Wealth Games 2010. He was charged with
conspiracy, forgery, misconduct and under provisions of the Prevention of Corruption
Act and later arrested for the same in April 2014, but as has yet not faced trial.

POLITICAL CAREER OF KALMADI

Suresh Kalmadi (born 1 May 1944) is an Indian politician and senior sports
administrator.He was formerly a member of the Indian National Congress
. He was a member of parliament from Pune till May 2014. He is alleged to have been
involved in corrupt practices in relation to the 2010 Commonwealth Games
during his tenure as president of Association and chairman of Common Wealth Games 2010.
He was charged with conspiracy, forgery, misconduct and under provisions of the Prevention
of Corruption Act and later arrested for the same in April 2014, but as has yet not faced trial.

POLITICAL CAREER OF KALMADI

In 1977, Kalmadi became the President of the Indian Youth Congress, Pune, and the very
next year took over President-ship of the Youth Congress, Maharashtra, a post he held from
1978 to 1980. In 1980, as the President of the Maharashtra Athletics Association, Kalmadi
undertook the selection trials for the Marathon team to represent the country at the Moscow
Olympics. This soon led to the establishment of the Pune International Marathon. He was a
member of the Rajya Sabha for three terms from 1982 to 1996, and again in 1998. Kalmadi
took over as the Chairman of the Maharashtra Tourism Development Corporation and in
1989 started the Pune Festival. He was also elected to the 11th Lok Sabha in 1996, and to the
14th Lok Sabha in 2004. During the tenure of P. V. Narasimha Rao
as the Prime Minister of India, Suresh Kalmadi served as the Minister of State for Railways
from 1995 to 1996. He presented the Railway Budget then as Union Minister of State for
Railways, the only MoS to do so. Kalmadi served as the President of the Indian Olympic
Association from 1996 to 2012.
He also served as the president of Asian Athletics Association
from 2000 to 2013 and was named its Life President in 2015.

CONTROVERSY

Mr Kalmadi, as the Indian Olympic Association, signed an agreement to bring the

48
 Formula One Grand Prix to India in 2007. Later that year, the UK-based organizers Formula
One Administration Limited signed a Rs 1600-crore contract in this regard with India-based
JPSK Sports Private Limited. Records obtained by The Indian Express showed that Pune-
based Sulba Realty Private Limited was a 13% shareholder in JPSK, along with
Jaypee Group (74%). Kalmadi's son Sumeer was a director in Sulba Realty at the time, which
would have implied a conflict of interest. While the JP in JPSK stood for Jaypee Group, it
was alleged that the SK was a reference to Suresh/Sumeer Kalmadi. Records from the
Registrar of
Companies, India showed that a year after the company was floated, Kalmadi's daughter,
Payal Aditya Bhartia, and his son-in-law, Aditya Bhartia, joined JPSK as independent
directors

FACTS AND FIGURES

DELHI GOVERNMENT’S CWG RELATED

INFRASTRUCTURE SPENDS

Amount directly spent on Commonwealth Rs. 670 crore on Stadium Flyovers and bridges,
including Barapulla Nallah Rs. 3700 crore ROB, RUB at Indira Gandhi International
Terminal Network Rs.450 Crore BRTS from Ambedkar Nagar to Delhi
Gate Rs. 215 crore Augmentation of DTC fleet
Rs. 1800 Crore Construction of Bus Depot Rs. 900 Crore
Strengthening and Resurfacing of Roads Rs. 650 Crore Street-Scalping
Rs. 525 Crore Road Signage’s Rs. 150 Crore Metro Connectivity Rs. 3000 Crore
Total Amount Spent ROB (road over bridge) RUB (road under
bridge)

FUNDS ALLOCATED FOR THE VENUES

The initial planned amount was Rs. 1000 crore but later it was revised to Rs. 2460
crore.
The amount spend on Jawaharlal Nehru Stadium was Rs. 961 crore.
On Ferozshah Kotla Stadium was Rs. 85crore.
On Indira Gandhi Stadium was Rs. 669 crore.
Dhyan Chand Hockey Stadium was Rs.262 crore.

AMOUNT SPENT ON OTHER FACILITIES

BUS SERVICE
METRO SERVICE
BALLOON COST AND SERVICE

SOCIO-ECONOMIC IMPACT

49
 Financial costs

Azim Premji ,founder of Wipro Technologies remarked that India faced several
socio-economic challenges and "to instead spend on a grand sporting spectacle sounds
like we [India] have got our priorities wrong."
Miloon Kothari, a leading Indian expert on socio-economic development, remarked
that the 2010 Commonwealth Games will create "a negative financial legacy for the
country" and asked "when one in three Indians lives below the poverty line and 40%
of the hungry live in India, when 46% of India's children and 55% of women are
malnourished, does spending
billions of dollars on a 12-day sports event build national pride or is it a matter of
national shame?"
One of the outspoken critics of the Games is
Mani Shankar Aiyar, former Indian Minister forYouth Affairs and Sports
In April 2007, Aiyar commented that the Games are "irrelevant to
the common man" and criticized the Indian government for sanctioning billions of
dollars for the Games even though India requires massive investment in
social development programs.
In July 2010, he remarked that he would be "unhappy if the Commonwealth
Games are successful".Azim Premji called the 2010 Commonwealth Games a "drain
on public funds" and said that hosting the high-expense Games in India is not justified
given that the country had more important priorities facing it, such as education,
infrastructure and public health.

SOCIAL AND ENVIRONMENTAL IMPACT

Nearly 400,000 people from three large slum clusters in Delhi have been relocated
since 2004. Gautam Bhan, an Indian urban planner with the University of California-
Berkeley, said that the 2010 Commonwealth Games have resulted in "an
unprecedented increase in the degree, frequency and scale of indiscriminate evictions
without proper resettlement. We
haven’t seen these levels of evictions in the last five years since the Emergency." In
response to a Right to Information (RTI) application filed for study and statements by
civil society groups, a report by the Housing and Land Rights Network (HLRN) - an
arm of the
Habitat International Coalition- detailed the social and environmental consequences
of the event. It stated that no tolerance zones for beggars are enforced in Delhi, and
the city has
arbitrarily arrested homeless citizens under the "Bombay Prevention of Begging Act
1959".

50
 LABOUR LAWS VOILATIONS

Campaigners in India have accused the organisers of enormous and systematic

violations of labour laws
At construction sites
.Human Rights Law Network reports that independent investigations have discovered
more than 70 cases where workers have died in accidents at
construction sites since work began. Although official numbers have not been
released, it is estimated that over 415,000 contract daily wage workers are
working on Games projects. Unskilled workers are paid
₹85 (US$1.30) to ₹100(US$1.50) per day while skilled workers are paid
₹120(US$1.80) to ₹ 130 (US$2.00) INR per day for eight hours of work.

Workers also state that they are paid ₹ 134 (US$2.00) to

₹150 (US$2.30) for 12 hours of work (eight hours plus four hours of overtime). Both
these wages contravene the stipulated Delhi state minimum wage of ₹ 152
(US$2.30) for eight hours of work.
Nearly 50 construction workers have died in the past two years while employed on
Games projects.These represent violations of the Minimum Wages Act, 1948;
Interstate Migrant Workmen (Regulation of Employment and Condition of Services)
Act 1979, and the constitutionally enshrined fundamental rights per the 1982 Supreme
Court of India judgement on Asiad
workers. The public have been banned from the camps where workers live and work –
a situation which human rights campaigners say prevents the garnering of information
regarding labor conditions and number of workers
There have been documented instances of the presence of young children at hazardous
construction sites, due to a lack of child care facilities for women workers living and
working in the labor camp style work sites. Furthermore, workers on the site of the
main Commonwealth stadium have reportedly been issued with hard hats, yet most
work in open-toed sandals and live in cramped tin tenements in which illnesses are
rife.
The High Court of Delhi is presently hearing a public interest petition relating to
employers not paying employees for overtime and it has appointed a four-member
committee to submit a report on the alleged violations of workers’ rights. During the
construction of the Games Village, there was controversy over financial
mismanagement, profiteering by the Delhi Development Authority and private real
estate companies, and inhumane working conditions.

Child labour

Mitu Sengupta, a professor of politics at Ryerson University

, Canada, points out that there is a "tradition of using 'urban spectacles' such as the
Olympics and World’s Fairs to enhance a city’s global recognition, image and status,
and to push through controversial policy reforms
that might otherwise linger in the pending file for years (it is easier to undercut local
opposition under the pressure of a fixed deadline and the international spotlight).” She

51
 writes that the reforms involved are often "the invention of an affluent, globally
connected minority that is relatively detached from local conditions and the local
population". The 2010 Commonwealth Games, she says, are being used to invigorate
an elite-driven program of urban transformation" that centers on privatization,
securitization, and the construction of "monuments.

Sengupta expands upon this argument in a subsequent article in Z Magazine

Amita Baviskar, a professor of sociology at the Institute of Economic Growth,
University of Delhi, makes a similar argument, on how mega-events, like the
Olympics and Commonwealth Games, are used to advance narrow agendas of urban
reform that cater to the middle class and rich. She
focuses on how, in preparation for the Commonwealth Games, the city's slums were
bulldozed in order to make room for shopping malls and expensive real estate.

ORGANIZATIONAL FAILURE

Vigilance-related irregularities and Over-Invoicing

On 28 July 2010, the Central Vigilance Commission, an Indian government body
created to address governmental corruption, released a report showing irregularities in
up to 14 CWG projects.
As per official reports, in total 129 works in 71 organizations have been
inspected. The detailed preliminary findings included the award of work contracts at
higher prices, poor quality assurance and management, and work contracts awarded to
ineligible agencies.
There are also allegations of widespread corruption in various aspects of organizing
the games including procurement and awarding contracts for constructing the game
venues.

The Commonwealth Games Organizing Committee on 5 August 2010 suspended joint

director T S Darbari and M Jayachandran following the report of the three-member
panel which was probing the financial irregularities related to the Queen's Baton
Relay.
Also, Organizing Committee treasurer Anil Khanna resigned from the post in the
wake of allegations that his son's firm had secured a contract for laying synthetic
courts at a tennis stadium.

The Global Post

news agency reports that scandals have come to light, such as "shadowy off-shore
firms, forged emails, inexplicable payments to bogus companies and
inflated bills – for every purchase from toilet paper to treadmills."
Among the alleged corruption and defrauding of the games budget, toilet paper rolls
valued at $2 were costed at $80, $2 soap dispensers at $60, $98 mirrors at $220,
$11,830 altitude training simulators at $250,190.

52
 Chapter-5
Data Analysis.Interpretation and Presentation.

5.1 CORPORATE GOVERNANCE:

Meaning of corporate governance:

The system of rules, practices and processes by which a company is directed and

controlled. Corporate governance essentially involves balancing the interests of the

many stakeholders in a company - these include its shareholders, management,

customers, suppliers, financiers, government and the community. Since corporate

governance also provides the framework for attaining a company's objectives, it

encompasses practically every sphere of management, from action plans and internal

controls to performance measurement and corporate disclosure. Most companies

strive to have a high level of corporate governance. These days, it is not enough for a

company to merely be profitable; it also needs to demonstrate good corporate

citizenship through environmental awareness, ethical behavior and sound corporate

governance practices.

Corporate governance has also been defined as "a system of law and sound

approaches by which corporations are directed and controlled focusing on the internal

and external corporate structures with the intention of monitoring the actions of

53
management and directors and thereby mitigating agency risks which may stem from

the misdeeds of corporate officers."

Good corporate governance ensures that the business environment is fair and

transparent and that companies can be held accountable for their actions. Conversely,

weak corporate governance leads to waste, mismanagement, and corruption. It is also

important to remember that although corporate governance has emerged as a way to

manage modern joint stock corporations it is equally significant in state-owned

enterprises, cooperatives, and family businesses. Regardless of the type of venture,

only good governance can deliver sustainable good business performance. The

presence of strong governance standards provides better access to capital and aids

economic growth. Corporate governance also has broader social and institutional

dimensions. Properly designed rules of governance should focus on implementing the

values of fairness, transparency, accountability, and responsibility to both

shareholders and stakeholders. In order to be effectively and ethically governed,

businesses need not only good internal governance, but also must operate in a sound

institutional environment. Therefore, elements such as secure private property rights,

functioning judiciary, and free press are necessary to translate corporate governance

laws and regulations into on-the-ground practice.

 Principals of corporate governance:

 Rights and equitable treatment of shareholders:

Organizations should respect the rights of shareholders and help shareholders to

exercise those rights. They can help shareholders exercise their rights by openly

54
 and effectively communicating information and by encouraging shareholders to

participate in general meetings.

 Interests of other stakeholders:

Organizations should recognize that they have legal, contractual, social, and

market driven obligations to non-shareholder stakeholders, including employees,

investors, creditors, suppliers, local communities, customers, and policy makers.

 Role and responsibilities of the board:

The board needs sufficient relevant skills and understanding to review and

challenge management performance. It also needs adequate size and appropriate

levels of independence and commitment.

 Integrity and ethical behavior:

Integrity should be a fundamental requirement in choosing corporate officers and

board members. Organizations should develop a code of conduct for their directors

and executives that promotes ethical and responsible decision making.

 Disclosure and transparency:

Organizations should clarify and make publicly known the roles and responsibilities

of board and management to provide stakeholders with a level of accountability. They

should also implement procedures to independently verify and safeguard the integrity

of the company's financial reporting. Disclosure of material matters concerning the

55
organization should be timely and balanced to ensure that all investors have access to

clear, factual information.

 Corporate governance in India:

India's SEBI Committee on Corporate Governance defines corporate governance as

the "acceptance by management of the inalienable rights of shareholders as the true

owners of the corporation and of their own role as trustees on behalf of the

shareholders. It is about commitment to values, about ethical business conduct and

about making a distinction between personal & corporate funds in the management of

a company. It has been suggested that the Indian approach is drawn from the Gandhi

and principle of trusteeship and the Directive Principles of the Indian Constitution,

but this conceptualization of corporate objectives is also prevalent in Anglo-

American and most other jurisdictions.

Unlike south –east and east Asia , the corporate governance initiative in India and was

not triggered by any serious nationwide financial, banking and economic collapse.

The initiative in india was initially driven by an industry association, the

confederation of Indian industry. In December 1995, CII was set up a task force to

design a voluntary code of corporate governance. The final draft of this code was

widely circulated in 1997.

56
In April 1998, the code was released. It was called Desirable Corporate governance.

Between 1998 and 2000, over 25 leading companies voluntarily followed the code:

 Bajaj Auto

 Hindalco

 Infosys

 Dr. Reddy’s Laboratories

 Nicholas Piramal

 Bharat Forge

 HDFC

 BSES

 ICICI & many more

Following CII & SEBI, the department of company affairs (DCA) modified to further

improve financial disclosures. These were:

 Disclosure of related party transactions.

 Disclosure of segment income :revenues, profits and capital employed

 Deferred tax liabilities or assets.

 Consolidation of accounts.

 Mandated Corporate Governance Guidelines:

 Board of directors : Frequency of meetings and composition:

57
1. Board must meet at least four times a year, with a maximum time gap of four

months between two successive meetings.

2. If the chairman of the Company is a non-executive then one-third of the board

should consist of independent directors and 50%otherwise.

3. Independent defined as those directors who, apart from receiving directors

remuneration do not have any other monetary relationship or transactions with

the company, its promoters, management or subsidiaries, which in the view of

the board may affect independence of judgment

4. The frequency of board meetings and board committee meetings, with their

dates, must be fully disclosed to shareholders in the annual report of the

company.

5. The attendance record of all directors in board meetings and board committee

meetings must be fully disclosed to shareholders in the annual report of the

company.

6. Full and detailed remuneration of each director (salary, sitting fees,

commissions, stock options and perquisites) must be fully disclosed to

shareholders in the annual report of the company.

7. Loans given to executive directors are capped (no loans permitted to non-

executives), and must be fully disclosed to shareholders in the annual report of

the company.

58
  Board of Directors : Information that must be supplied:

1. Annual, quarter, half year operating plans, budgets and updates.

2. Quarterly results of company and its business segments.

3. Minutes of the audit committee and other board committees.

4. Recruitment and remuneration of senior officers.

5. Materially important legal notices and claims, as well as any accidents,

hazards, pollution issues and labor problems

6. Any actual or expected default in financial obligations.

7. Details of joint ventures and collaborations.

8. Transactions involving payment towards goodwill, brand equity and

intellectual property.

9. Any materially significant sale of business and investments.

10. Foreign currency and other risks and risk management.

59
 11. Any regulatory non-compliance

 Board of directors: audit committee:

1. Must have minimum of three members, all non-executive directors, the

majority of whom are independent.

2. Chairman must be an independent director, and must be present at the

annual shareholders meeting to answer audit or finance related questions.

3. At least one member must be an expert in finance/accounts.

4. .Must have at least three meetings per year, including one before

finalization of annual accounts

5. Must meet with statutory auditors and internal auditors; have the powers to

seek any financial, legal or operational information from the management;

obtain outside legal or professional advice.

 Disclosures to shareholders in addition to balance sheet, P&L a/c & cash

flow statement:

60
 1. Board composition (executive, non-exec, independent).

2. Qualifications and experience of directors.

3. Number of outside directorships held by each director (capped at director not

being a member of more than 10 board-level committees, and Chairman of not

more than 5).

4. Attendance record of directors.

5. Remuneration of directors.

6. Relationship (familial or pecuniary) with other directors.

7. Warning against insider trading, with procedures to prevent such acts.

8. Details of grievances of shareholders, and how quickly these were addressed.

Date, time and venue of annual general meeting of shareholders.

9. Dates of book closure and dividend payment.

10. Details of shareholding pattern.

11. Name, address and contact details of registrars and/orshare transfer agents.

61
12. Details about the share transfer system. Stock price data over the reporting

year, and how the company stock measured up to the index.

13. Financial effects of stock options.

14. Financial effects of any share buyback.

15. Financial effects of any warrants that are to be exercised.

62
 TABLE: 3

Shows the corporate mis-governance of certain companies for the period (2002-

2003 & 2003-2004)

63
 5.2- Data Analysis – Interview Feedback:

The Study of financial Scams was taken into consideration and there were

Interview taken from Ascent Networks Pvt,Ltd employees.

Name Age Designation Do you Is Can scams Growth

know government be % of
about working on Demolished? scams in
scams it? India

Sushmeetha 46 Director Yes No yes 80%

Vikrant 42 Supervisor yes No Yes 50%
Tejvir 40 Purchase Yes Yes No 70%
Head
Ravi 35 Tenders No No No 50%
Prachi 37 Accounts yes No No 90%
Santosh 46 Accounts yes No No 85%
Kishan 47 Supervisor Yes No No 50%
Pooja 36 Accounts Yes No No 100%
Dilip 43 Accounts Yes No No 70%
Yogita 48 Accounts Yes No No 60%

Growth % of scams in India

120%

100%

80%
Growth % of scams in
60%
India
40%

20%

0%

64
 Growth % of scams in India
Sushmeetha 46 Director Yes
No yes
Vikrant 42 Supervisor yes
No Yes
Tejvir 40 Purchase Head Yes
Yes No
Ravi 35 Tenders No No No

Prachi 37 Accounts yes No

No
Santosh 46 Accounts yes No
No
Kishan 47 Supervisor Yes No
No
Pooja 36 Accounts Yes No
No
Dilip 43 Accounts Yes No No

Growth % of scams in India

100%
90%
80%
70%
60%
Growth % of scams in
50% India
40%
30%
20%
10%
0%

65
 6- CONCLUSION:

While the corporate governance framework in the country is seen at par with other

developed markets, the same has to be implemented in 'letter as well as spirit.

The fact that white collar crime continues to occur, and seemingly at an

increasing rate, suggests that the expected costs do not outweigh the

expected benefits from cheating. Stronger penalties are needed.

So this concludes the list of Indian scams of all times. According to the compilation,

the total amount of money involved in various scams over the last 12 years alone,

since 1992, is estimated to be over Rs 80 lakh crore (Rs 80 trillion) or $1.80 trillion!

To many people abroad, India is seen sentimentally as Mahatma Gandhi’s country of

khadi cloth, good ethics, and care for the poor. To some it is an economic miracle and

a future super power, while to others it is an unkind cruel place of caste, ethnic and

rich-poor divisions and violence.

Above all however, and not far below the surface, India is a maze of unethical,

unlawful and illegal swindles that link most politicians, many bureaucrats, and a large

number of businessmen and others.

66
 Suggestions:

In recent years, there has been a significant rise in financial frauds and scams all
over the world. Cases of money laundering, identity theft, cybercrime, banking
frauds, and loan misappropriation have become common in the Indian and global
financialsystem.
The age of Internet and globalization have accelerated the occurrence of these
swindles. Many times, recession and the collapse of the financial system have
been a direct result of these scams. With constant online presence, digitalization
has left the common man vulnerable to different kinds of scams such as identity
theft,email,oronlinescams.

These activities expose loopholes in the system, and the common man often
becomes the target of such frauds. As per recent statistics, banking frauds in
Indian public sector undertakings (PSUs) amounted to Rs25,775cr in FY17-18.

There are several ways in which you may be caught unaware while someone tries
to steal your money:

1. An email asking for help to release inheritance

2. Requesting a business partner in foreign shores
3. Impersonating as an employee from a reputed financial organization
4. Declaring that the recipient has won a huge lottery
5. Pop-ups that advertise expensive gadgets for free if the person provides
his/her personal details. This is a phishing scam where the hacker is
trying to engage in identity theft or install a malicious software on the
user’s device.

Tips to avoid such scams and frauds:

1. Never share personal and financial details over the phone or email.

2. Do not respond to calls that ask for personal and financial information.

3. Never share your ATM and debit/credit care PIN, internet banking
password, or any details regarding your bank accounts.

4. Nobody can win a lottery in which they have not participated. Stay
away from such scammers.

5. Do not click on any random hyperlink or download software from pop-

up windows that appear suspicious.

67
 6. Install an antivirus to safeguard the computer from malicious software
and viruses. The antivirus program should be updated frequently.

7. Never transfer funds or share debit/credit card information to any person

who claims to be a long-lost relative.

8. Use secure payment gateways for online payments.

9. Never make payment for any sweepstakes as they do not ask for
payment upfront.

10. Use a caller id to identify incoming calls. In case the number shows up
as private or unknown, ignore or block the call.

11. Do not have easy-to-crack passwords. Most people use passwords that
are related closely to their personal life. Use passwords that contain a
mix of uppercase, lowercase, and special characters and are not related
to any personal details or events that others may easily be able to guess.

12. Use secure websites that have a lock symbol before the URL bar on the
browser. This symbol indicates that the site is encrypted and protected
against hackers.

13. Never sign blank checks and always put a double line on the upper left
corner of the check. This line ensures that any bearer cannot withdraw
cash.

14. Never share the one-time password (OTP) to an unknown person or

caller. Make sure that the OTP has been generated for the transaction
initiated only by you.

15. Check with your bankers immediately when you receive a call for
personal details from a person claiming to be an employee of that bank.
No bank asks for personal details through call or email.

68
 BIBLIOGRAPHY:

1. www.caseplace.org

2. www.icmrindia.org

3. Articles.timesofindia.indiatimes.com

4. Business ethics: concepts and cases- Velasquez.

5. Dagar, S.S. (2009). How Satyam was sold the untold story.

6. Visit to Ascent Networks Pvt.Ltd

7. Financial Scams Books

69
 Appendix:

1- Do you know about scams?

2- Is government working on it?

3- Can scams be Demolished?

4- Growth % of scams in India?

5- What are your Views On scams?

6- What are your one suggestion which can make a

difference?

7- What can be done to demolish scams?

8- One Message to Indian Government?

70