GOVERNMENT OF MAHARASHTRA

SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS

B Rd, CHURCHGATE, MUMBAI-400020

SYNOPSIS
Project on
FINANCIAL SCAMS IN INDIA
SUBMITTED BY:
HARSHAL RAJU BHADANGE
T.Y.B.M.S
ROLL NO: 1121
ACADEMIC YEAR: 2016-2017
PROJECT GUIDE:
PROF.PRASAD NAIK

SIGNATURE OF GUIDE

STUDENT SIGNATURE

INDEX
SR.NO.

PARTICULARS

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Introduction on financial scams in India

Objectives
Type of research
Research methodology
Some scams that shook India

INTRODUCTION

Financial scam can be broadly defined as an intentional act of deception involving financial
transactions for purpose of personal gain. Scam is a crime, and is also a civil law violation.
Many scam cases involve complicated financial transactions conducted by 'white collar
criminals' such as business professionals with specialized knowledge and criminal intent.
An unscrupulous investment broker may present clients with an opportunity to purchase shares
in precious metal repositories, for example. His status as a professional investor gives him
credibility, which can lead to justified credibility among potential clients. Those who believe
the opportunity to be legitimate contribute substantial amounts of cash and receive authenticlooking bond documentation in return. If the investment broker is fully aware that no such
repositories exist and still receives payments for worthless bonds, then victims may sue him for
scam.
Scamsters can contact their potential victims through many methods, which include face- toface interaction, by post, phone calls, sms and/or emails. The difficulty of checking identities
and legitimacy of individuals and companies, the ease with which fraudsters can divert visitors
to dummy sites and steal personal financial information, the international dimensions of the
web and ease with which fraudsters can hide their true location, all contribute to making
internet fraud the fastest growing area of scam.
"Get-Rich-Quick" schemes are plans which offers high or unrealistic rates of return for a small
amount of investment while at the same time promising that such investment is easy and riskfree. Generally speaking, if the offer is too good to be true, members of the public are advised
to be wary and should make an effort to verify the validity of the promised high returns. Most
get-rich-quick schemes also assert that wealth can be generated with little skill, effort, or time.
Illegal schemes or scams are often advertised through spam or 'cold-calling'. Some forms of
advertising for these schemes market books or compact discs about getting rich quick rather
than asking participants to invest directly in a concrete scheme. It is clearly possible to get rich
quickly if one is prepared to accept very high levels of risk - this is the premise of the gambling
industry. However, gambling offers the near-certainty of completely losing the original stake
over the long term, even if it offers some wins along the way. Nevertheless, many people long
for instant wealth, and find these schemes appealing.

OBJECTIVES

The objectives of the project are:

To know the scams that affected Indian economy

To study the effects of scams

To make people aware about the fraud and scams

To recommend people what to do to avoid being trapped in scams

TYPE OF RESEARCH

Secondary Research:
Secondary Research is a common research method; it involves using information that
others have gathered through primary research, it includes information through
published data, personnel records, government records, internet, public sector records
and electronic data.

RESEARCH METHODOLOGY
The research design used for this study is of empirical in nature which includes both
descriptive and exploratory. Now the study is empirical in nature because the data is derived
by means of direct observation or experiment, and it will be used in the research to answer a
question or test a hypothesis. It has been designed in this study to determine the direction and
the magnitude of the effect of the particular information on the stock prices. Convenience
sampling technique is chosen for this research work because of the availability of the data.

SOME SCAMS THAT SHOOK INDIA

Fodder Scam (1996) Known as the mother of all scandals, this scam broke out in

1996 in the town of Chaibasa, Jharkhand (formerly Bihar).

Coal block allocation scam (2012) It is a political scam that exposed corruption in

the higher echelons of power.

Chopper scam (2013) Also referred as chopper gate scam, this is one of the most
recent scams that involve several politicians and defence officers, who have been
accused of having accepted bribes from Agusta Westland to clear a contract to supply
12 Agusta Westland AW101 helicopters to India.