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In an age of digital technology, it’s incredibly easy to create fake documents. Document forgery is a rampant issue in India. Some of the most common types of forgery are the creation of false passports and visas, ID cards, degree certificates, and property documents.
India has witnessed some of the biggest scams from Harshad Mehta’s securities fraud to the Punjab National Bank Fraud. The NSE co-location scam that came to light in 2015 was valued at around ₹50,000 crores. The ₹14,000 crore Satyam fraud was another large-scale fraud in which Ramalinga Raju, the former chairman of Satyam Computer Services, was accused of faking the books of accounts for several years to inflate the company’s revenue and profit figures.
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1992 Stock Market Scam
If you look closely at these scams, apart from the usual swindling of money, document forgery was a major aspect. Harshad Mehta, a prominent Indian stockbroker, and trader, took advantage of the loopholes in the investment portfolio of banks to forge bank receipts (BRs). Neither the SGL transfer forms nor the BRs were backed by securities. The BRs were also used to fraudulently obtain loans from banks and invest the money in the stock market. Mehta’s actions led to a stock market crash in 1992. He was arrested and faced trial for his involvement in the fraud.
Satyam Scandal
Another major scam that involved document forgery at its heart was the Satyam fraud which was revealed after a confession letter penned by B. Ramalingam Raju. The letter, which was published in the Times of India, disclosed that Raju had manipulated the company’s books of accounts by inflating assets and understating liabilities. Account books are an essential tool for investors to evaluate a company’s financial health before making an investment. However, the falsification of Satyam’s accounts books misled investors and shareholders and defrauded them.
SEBI, the regulatory body for securities and commodity markets in India, found Raju and many of his associates guilty of insider trading and dishonest and unfair business practices. The accused were prohibited from entering the security markets for 14 years and ordered to pay approximately 3000 crores within 45 days. SEBI’s response was intended to prevent similar scams from occurring in the future.
Recent cases of document forgery
It’s not that fake documents are only used by large organizations to carry out scams of crores of rupees. They are very common and prevalent across various cities in India. Take a look at some of the most recent cases of document forgery:
- Fake Visa Documents – Punjab
In March 2023, the Canada Border Security Agency issued deportation notices to 700 Indian students for holding fake visa documents. These students received their visas from a Jalandhar-based education migration services company.
- Fake Property Documentation Racket – Bibinagar, Telangana
In February 2023, a racket of six people was held for forging property documents in Bibinagar. The culprits were involved in land fraud and would impersonate and forge the sale deed documents. The gang cheated nine victims by forging fake sale deeds worth ₹7 lakhs.
- Fake Experience Certificates – Punjab
In January 2023, 24 contractual Punjab State Power Corporation Limited (PSPCL) employees were arrested for securing jobs by submitting fake experience certificates.
- Open Space Reservation Document Forgery – Sriperumbudur, Tamil Nadu
In August 2022, The Central Branch CID arrested five revenue officials for the forgery of open space reservation land donated to the villages in Sriperumbudur. As part of the scam, ₹21.08 crores were paid to acquire 16.64 acres of open space reservation land to expand the SIPCOT industrial park in Sriperumbudur.
- Fake Passports for Lawrence Bishnoi Gang – Gurugram, Haryana
In July 2022, Special Task Force, Gurugram, arrested a man, who allegedly made fake passports for members of the Lawrence Bishnoi gang with forged documents. The culprit had prepared forged documentation for passports for more than 20 people.
- Forgery of Education and Birth Documents for UPSC Exam – Delhi
In June 2022, a Deputy Commissioner of Police (DCP) in Delhi’s Armed Police unit, was suspended for allegedly using forged education and birth documents while appearing for the UPSC exam. The 2009-batch DANIPS officer used educational qualifications and date of birth documents belonging to some other person with the same name.
- Fake Aadhar and PAN Cards for Land Sale – Pune, Maharashtra
In May 2022, 7 property agents were arrested in Pune for making fake voter IDs and cards. These property agents created bogus government documents like voter IDs, PAN, and Aadhar cards to sell and mortgage lands across Maharashtra.
- Fake Graduation Certificate – Jhansi, Uttar Pradesh
In May 2022, a case was registered against Harpreet Singh Bhatia, a cricketer who plays for Chhattisgarh in the Ranji Trophy, for using a fake graduation certificate to seek a government job in 2014. The batsman had submitted documents relating to his B. Com degree that was claimed to have been issued by Bundelkhand University in Uttar Pradesh’s Jhansi.
- Identity Fraud – Delhi
In May 2022, The Economic Offences Wing (EOW) of Delhi Police arrested a British national for the alleged forgery of documents in the name of the Ministry of Finance. The culprit used a forged notification to stay in the SARFAESI proceedings against his company GPT Steel Industries Ltd. Located in Ahmedabad.
How Blockchain Could Have Played a Crucial Role in Preventing Document Forgery and Fraud in the Above Cases?
One can say that fake documents form the basis of major financial and identity frauds. The government has in place various measures and laws to prevent these frauds. However, most of these measures have loopholes and the laws are merely reactive to scams and frauds. It is important to prevent these frauds from happing in the first place as these cases not only cause financial losses to individuals and organizations but also pose a threat to national security.
Blockchain technology can play a crucial role in preventing document forgery and fraud by providing a secure and tamper-proof way of storing and verifying documents. In the case of fake visa documents in Punjab, for example, access to the original visa documents stored on a blockchain can help to quickly verify their authenticity, thereby preventing the issuance of fake visas to Indian students. Similarly, in the case of the fake property documentation racket in Telangana, blockchain-based land registries could be used to store property documents securely and prevent fraud by providing a transparent and immutable record of land transactions.
Moreover, the use of blockchain-based digital identity systems can help prevent identity fraud by allowing individuals to store their personal information securely and control access to it. This would eliminate the need for physical identity documents, such as Aadhaar cards, that can be easily forged. By using a decentralized and tamper-proof system, individuals can be sure that their personal information is secure and not prone to manipulation or theft.