Corporate Fraud and Banking Loopholes: Analyzing the Phenomenon of Big Businessmen Fleeing Indian Banks

Ananya Sharma; Durlabh N. Shetty; Gitarthi Chandra

doi:10.36948/ijfmr.2025.v07i01.35752

Corporate Fraud and Banking Loopholes: Analyzing the Phenomenon of Big Businessmen Fleeing Indian Banks

Author(s)	Ananya Sharma, Durlabh N. Shetty, Gitarthi Chandra
Country	India
Abstract	This study focuses on the concept of corporate fraud and the loopholes and weaknesses of the Indian banking system used by corporate criminals to fraud and flee the banks, and the country. Through an analysis of recent cases, this paper aims to analyse the vulnerabilities in the banking sector which makes it possible for these big businessmen to exploit and defraud the banks. Inadequate regulatory supervision, faulty risk assessment practices, and cooperation between business organisations and bank officials are important contributing causes. The first and the last cause is a major focus of this study, as due to inadequate supervision and relying on the word of disreputable Vijay Mallya 17 banks all over the country lent him Rs. 9000 crores, and the infamous PBN scam of Nirav Modi was successful with the help of bankers of the Brady House, Mumbai branch. The study additionally examines how these types of frauds affect the economy, specifically how they weaken public confidence in financial institutions and cause the banking system to become unstable and unreliable. This study also proposes practical measures to fortify accountability, increase transparency, and improve governance in the banking industry. It also highlights the critical need for extensive reforms to stop similar financial crimes from happening in the future and rebuild trust in the banking sector in India with strict prevention and detection mechanisms to detect fraud and nab the criminal before such an activity is committed.
Keywords	Corporate Fraud, Banking Loopholes, Non-Performing Assets, Fraud and Flee, Banking Sectors
Published In	Volume 7, Issue 1, January-February 2025
Published On	2025-01-28
Cite This	Corporate Fraud and Banking Loopholes: Analyzing the Phenomenon of Big Businessmen Fleeing Indian Banks - Ananya Sharma, Durlabh N. Shetty, Gitarthi Chandra - IJFMR Volume 7, Issue 1, January-February 2025. DOI 10.36948/ijfmr.2025.v07i01.35752
DOI	https://doi.org/10.36948/ijfmr.2025.v07i01.35752
Short DOI	https://doi.org/g829q8

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Corporate Fraud and Banking Loopholes: Analyzing the Phenomenon of Big Businessmen Fleeing Indian Banks

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