HOME TRADE SCAM (2002)

Protagonists – Sanjay Agarwal, Sunil Kedar(125 core)

Amount – Rs. 600 Cr

What was it about? –

A brokerage embezzling funds from over 25 corporate banks across Maharashtra by luring them
with higher interest rates on gilt trading. Investigations revealed that the G-Secs which Home
Trade claimed to have bought, were not physically delivered and may not have even existed.

Status:
According to an India Today report Agarwal who was arrested in 2002 is out on bail. The case
has been indefinitely delayed due to the accused not turning up for court hearings.

Sunil Kedar was arrested for bending the rules to invest in G-secs and for preparing false
documents

Sanjay Agarwal initially went missing but later surrendered before a lower court in
Nagpur. "His interrogation will expose the linkages between many more brokers and
banks,"

The investigating agency is looking at a possible broker-bank nexus in diverting money

from cooperative banks into the stock market. A similar method was used by Harshad Mehta
in 1992. He pulled out funds from government-owned banks by issuing bogus Bankers' Receipts
instead of G-secs and played the stock market.

Under RBI regulations, banks have to maintain a Cash Reserve Ratio (CRR) and a
Statutory Liquidity Ratio (SLR) on the basis of deposits held