Fraud in Symbiosis – Director terminated

fraud in symbiosis

fraud in symbiosis

The Symbiosis International University (SIU) has terminated the services of the director of one of its institutes following allegations of a placement fraud leveled against him by a section of students.

The director, who had joined the institute in August 2013, allegedly collected varied sums from at least 10 students of the MBA (international business) course on the pretext of processing their visa and other documents after assuring them of international placements with leading multinationals operating in the aviation and other key sectors.

Fraud in Symbiosis came to the surface only when the concerned students who paid the money to the director did not get the jobs as promised in the MNC firms
.

In the meantime, other students got placements in domestic firms. The students who had been promised global placements continued to wait for their appointment letters and were left out of the domestic placement process. After a long wait, when there was no sign of the appointment letters, the students confronted the institute director and eventually the SIU management, sources added.

Yeravdekar said, “Placement matters are usually handled at the institute level by the director concerned. The SIU management barely comes in picture in these matters. The students gave money to the director without informing the placement in charge or any management representative. They also did not demand any receipt from the director for the money they gave him.”

For the students, the immediate concern is to recover their money from the director.

Co-operative bank frauds rise to Rs.727 crores

co-operative bank fraudsNational Bank for Agriculture and Rural Development (NABARD) has pulled up regional rural banks, state and district cooperative banks for substantial rise in value of frauds. Present set up and capabilities to detect, monitor and take remedial action against frauds were highly inadequate, it said.
In a strongly worded communication to chief executives of rural banking institutions, rural banking regulator said banks had to rehaul there systems and capabilities to detect and control the menace (co-operative bank frauds).
The regulator conducted review of co-operative bank frauds and progress in recovery by the banks supervised by it. It was quite disturbing that although the number of outstanding frauds has marginally declined at end of March 2013 compared to previous year and the amounts involved have grown substantially.
 The amount involved in frauds rose to Rs 727.54 crore during period (ended March 2013) from Rs 611.77 crore a year ago. The increase in amount was largely attributed to a few high value frauds in the loans and advances segment.
In several cases, banks were either not reporting or reporting the fraud with the undue delay. The actual amount involved could therefore, be higher than the indicated amounts, NABARD said.
The regulator said there was also considerable delay in conducting investigations and fixing of accountability and recovery of amounts involved in frauds. During 2012-13 a meager amount of Rs 23.01 crore only was reported to have been recovered which accounts for only 3.8% of the amount outstanding at end of March 2012.
Dwelling on factors responsible for frauds, NABARD said one of the reasons was the absence of well documented system with defined authority and responsibility at each stage of operation.
The inadequate internal checks and control systems, lack of accountability and job specification of staff and absence of deterrent punishment for those involved in frauds also provided room for committing such breaches, it said.
The regulator said managements of some banks were not serious in getting the pending fraud cases reviewed at their board meetings. Most banks were yet to form Fraud Risk Group, it said.
As a step to get control over fraudulent transactions and practices, NABARD has advised banks to improve detection, monitoring and investigation capability of system.
Besides strengthening loan appraisal and sanctioning mechanism, banks should tighten their internal checks and balances. They should also develop efficient monitoring capabilities and initiate strict punitive action in all such cases in time bound manner, NABARD said.

Family Fare scheme of Air India Hit by Fraud

air india fraudFamily Fare Scheme is the concession given to employees of the airlines in which they can take their family to a domestic destination once a year at subsidized cost.

This concession is found to be misused for the purpose of comitting the fraud in the Government owned Airline company of India – Air India.

The preliminary in-house inquiry conducted by the vigilance department found out that the fraud was largely carried out on the Chennai-Port Blair and Kolkata-Port Blair sector and this caused a loss of Rs 2.70 crore to Air India but the overall loss to the government was over Rs 6 crores.

The probe report said the travel operator “indulged in fraudulently altering the fare on flown coupons to higher amount than the fare shown on the audit coupons and thus presumably keeping the excess amount which is difference of fare as per flight coupons and the audit coupons.”

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India loses more than 17000 crores to bank frauds

bank frauds fraudtoday

Indian banks have lost more than 17000 crores to frauds in more than 26000 instances of frauds reported in the year 2012-13. Report published in Economic Times stated that the total bank frauds in the Indian Banking sector have quadruplicated in one year’s time.

According to the data, Punjab National Bank was the worst hit, with cases of fraud involving Rs 1,375 crore while Canara Bank lost Rs 1,166 crore. Other public sector banks that lost more than Rs 1,000 crore include State Bank of India, Bank of India and Oriental Bank of Commerce.