Seven big corruption scandals that rocked India

India has been rocked this year by a series of corruption scandals that have embarrassed the ruling Congress party, rattled markets and delayed reform bills as the opposition stalls parliament.

The country, 87th in Transparency International's rankings based on perceived levels of corruption, is no stranger to scandals.

Here are some of the biggest in the last two decades:

2010 -- LOAN BRIBERY CASE

The case broke after a year of investigation on Nov. 24 when the Central Bureau of Investigation (CBI) arrested eight people, accusing them of bribery for corporate loans.

The arrests included the chief executive of state-run mortgage lender LIC Housing Finance and senior officials at state-run Central Bank of India , Punjab National Bank and Bank of India.

While the size of the scandal is not yet known, local media have reported it could run into hundreds of millions of dollars.

The CBI is probing 21 companies involved in India's booming infrastructure sector for links, but has not named them.

The bribes were allegedly paid by private finance firm Money Matters Financial Services , which acted as a "mediator and facilitator" for the loan beneficiaries, the CBI said.

Companies whose officials have been arrested have all denied any wrongdoing. Individuals arrested have not yet commented.

Government officials, including ministers, have said this is a case of individual wrongdoing and not a widespread scam.

2010 - TELECOMS LICENCE ROW

Telecoms Minister Andimuthu Raja was sacked after a report by the govt auditor said his ministry sold licences and spectrum below market prices, depriving the government of up to $39 billion in revenues.

The scandal swept up as high as Prime Minister Manmohan Singh, who had to explain to the Supreme Court why he sat on a request for permission to charge Raja with corruption.

In its report, the Comptroller and Auditor General of India (CAG) also said rules were flouted when the licences were given in 2007-08 which led to many ineligible firms getting them.

The CBI has launched an investigation into alleged corruption at the ministry. Nobody has been charged yet and Raja has denied any wrongdoing.

The CAG said Unitech units got licences despite having inadequate capital, Swan Telecom got a licence even though there were monopoly issues and Reliance Communications got undue benefits as it sought permission to offer services under the more popular GSM technology.

Revenue authorities have questioned Nira Radia, a top lobbyist, as part of an investigation into whether money laundering and forex laws were broken when the licences were purchased. Radia has denied any wrongdoing and has said she is cooperating with the probe.

2010 - COMMONWEALTH GAMES

Allegations of corruption over the international sporting event that took place in Delhi in October are being investigated by several bodies including the anti-corruption watchdog, the state auditor, the CBI and a special committee set up by Prime Minister Singh.

The Congress-party led coalition government came under fierce criticism for mismanagement and ineptitude over the sporting extravaganza which cost up to $6 billion.

Allegations of corruption spanned a broad spectrum including issuing of contracts and purchase of equipment -- from treadmills to toilet rolls.

India's anti-corruption watchdog has identified more than 16 projects with possible irregularities.

The Congress party eventually sacked Suresh Kalmadi, chairman of the organising committee, as secretary of the party's parliamentary wing.

Source: http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/Seven-big-corruption-scandals-that-rocked-India/articleshow/7001728.cms