FSMI PROJECT PRESENTATION

Team: E. Manish (12)| E. Rajith Krishna (13)| L. Neena (30)| T. Sarayu (46)

FINAL PROJECT

Case study analysis on major financial market scams

Course Name: Financial services, markets and institutions

It is fraud to borrow what we are unable to pay...

-publilius syrus

05.recommendatons

01.Abstract

06.discussion

04.findings

03. case presentation

02.introduction

TABLE OF CONTENTS

Bribe-to-loan scam

01

The Syndicate bank

keywords

illegal disbursement of loans, Due-diligence, CBI

01. SYNDICATE Bank and the case study

The Rs 1,257 crore Syndicate Bank scam is a significant banking fraud due to the illegal -disbursement of loans to some companies without proper documentation and verification of their credentials. The Central Bureau of Investigation registered/filed a case against some Syndicate Bank officials in 2019 for their alleged involvement in this scam. This research paper investigates the scam's various aspects, including its causes, impact, and consequences.

02

introduction

The Central Bureau of Investigation registered a case against several individuals, including Syndicate Bank's former chairman and managing director, for allegedly accepting bribes in exchange for approving loans. The CBI alleged that the accused had conspired to cheat the bank by fraudulently sanctioning loans to companies that were not eligible for them and had not repaid them. The bribes were allegedly paid in cash and in the form of gifts and expensive hotel stays. The accused also manipulated the bank's internal processes to approve the loans, overriding the objections of bank officials.

02. introduction

03

case presentation

03. CAse Presentation

• Charge- sheet filed on more than 20 suspects,
• More than 350 fraudulent loan accounts were opened in three branches,
• ED has issued a money laundering probe based on the FIR,
• Major conspirators: Mr. Bharat Bomb & his associates, Pavitra Kotari, Shankar lal Khandelwal.
• ₹1,257 crores of funds borrowed in multiple lots, which were proven misused

04

findings

point 2

• Collusion between officials and borrowers

point 3

• Weak internal controls

point 1

• Lack of due diligence

04. findings

05

Recommendations

• Assessing the end-use of loans sanctioned

• Enhancing employee training and awareness

• Greater transparency

• Enhanced supervision

• Strict action against defaulters

• Improving due diligence

• Strengthening internal controls

05. Recommendations

06

discussion

discussion

• room for further investigation into this scam.

• MESSAGE from CBI after the investigation,
• CIRCULAR ISSUED by RBI,
• the consequences of lax governance and oversight

06. METODOLOGÍA

Any question?

our team

Thanks for your attention