Kolkata, historically known as Calcutta, was once the capital of British India. For centuries it was the intellectual, political and commercial center of the subcontinent. However, after independence, the city and the state of West Bengal went through a tumultuous period, including economic recession, political turmoil, strikes by labor unions and widespread poverty. For decades, it created an environment where corruption, scams and fraudulent activities were flourishing.
Today when people say that Kolkata or West Bengal is infamous for fraud and corruption, they usually point to some highly publicized scams, the behavior of local governance and the confusion between political structures and criminal enterprises. But the truth is much more complex than this. To understand why this notion exists, one has to study the history, society, economy, governance and human behavior of this region.
Kolkata was once the most important trading center of Asia during the British Raj. Merchants, bankers, moneylenders and business houses were concentrated here. Along with trade and commerce came opportunities for manipulation, bribery and deceit. The legacy of this culture of cunning behavior did not disappear even after independence. Rather, as the city’s economy weakened in the second half of the twentieth century, fraud and swindling often became survival tactics for many individuals and groups.
Another factor lies in the long political history of West Bengal. The dominance of one-party politics, the rise of leftist ideologies, and the subsequent era of strong populist politics created situations where networks of patronage became more important than fair governance. In such an environment, if one wanted to succeed, one often had to break the rules, bribe officials, or form “relationships”. Over time, this made corruption a part of everyday life.
The police and bureaucracy in Kolkata have also earned a reputation for incompetence and dishonesty. Many fraudsters and thugs openly claim that they can continue their scams without fear, as a portion of their illegal earnings are regularly shared with local police officers, political leaders or government officials. This symbiotic relationship between fraudsters and law enforcement agencies makes the scandals look almost like an accepted parallel economy. There are prevalent stories of how cheating gangs openly say: “Don’t touch us, we pay police and leaders monthly, so we’re safe” Whether completely true or exaggerated, such statements reinforce the notion that Kolkata is a city where there is no curb on fraud and swindling.
The city has also been witness to some of India’s biggest financial scams. For example, the Saradha chit fund scam shook not only West Bengal, but entire eastern India. The savings of lakhs of poor depositors were cheated. Similar scams—rose Valley, iCor, and others— flourished in Kolkata and spread outside. These cases created the impression that the town was a factory for fraudulent schemes. When Kolkata scammers set up call centers or financial schemes, they attract investors with false promises and later disappear with huge sums of money. Victims across India often find the roots of these frauds in Kolkata.
This has created the image that fraud in Kolkata is not just a single incident, but almost an industry. Although this generalization is unfair to honest people, the recurrence of such scams further strengthens this stereotype. People outside Bengal have started believing that Bengalis are more corrupt or deceitful in some way or the other. In fact, what they are seeing is a reflection of systemic weaknesses in governance, law enforcement and economic opportunities, which have allowed the scam network there to flourish further.
The sociology of the city also plays a role. Kolkata has always been a place of sharp intelligence, debate and argument. Bengalis are known for their intelligence, creativity and verbal skills. Unfortunately, when honest employment opportunities are few, the same skills of persuasion and verbal manipulation can degenerate into fraud and deceit. Scammers, for example, thrive on the ability to convince strangers on call center phones. Many of these rackets recruit educated but unemployed youth who use their communication skills to dupe people abroad. This has nothing to do with any inherent dishonesty, rather financial constraints put talents to dishonest work.
Furthermore, West Bengal’s complex bureaucracy, often mired in outdated rules and corruption, forces ordinary citizens to take shortcuts. If one needs a license, permit or government job, bribes or contacts are often required. Over time, this creates a culture where fraud and bribery become commonplace. Citizens stop considering them as “crimes” and start considering them as important means of survival. In such an environment, large-scale scams can easily occur as they fit into the broader framework of everyday corruption.
In addition, there is an aspect of security. Cheaters in Kolkata often claim that they share a portion of their profits with the police, politicians or local power brokers. As a result, even if cases are registered, the investigation does not reach anywhere. Files disappear, witnesses change statements and evidence is lost. This cycle of security strengthens the morale of cheaters. The institutions that should punish them are the ones that take advantage of their money. That’s what makes the saying: “We are safe because we pay officers a monthly salary” This is a horrifying truth, and many people in Kolkata silently accept it.
Now, if we look at the broader psychology, corruption in Kolkata is flourishing due to weak results. People commit fraud not only because of greed, but also because they believe that they will escape punishment. In West Bengal, cases against influential fraudsters continue for decades. Political relations save them. Meanwhile, victims rarely receive justice. This lack of fear creates an environment where fraud becomes a rational choice.
Culturally, Kolkata is also a city that has great power to tell and explain stories. It has enriched literature, cinema and intellectual life. But it also means that scammers can weave credible stories to trick people. Whether it’s a financial chit fund promising impossible returns, or a fake call center pretending to be from a foreign bank, its strength lies in the manipulation of the story. When the system mixes with corruption and weak law enforcement, it becomes a dangerous mix.
The stereotype that “the most corrupt Bengalis live in Kolkata” comes from outsiders, who repeatedly face fraudulent networks linked to the city. But be careful—this stereotype is unfair to millions of honest Bengalis who struggle against the same corrupt systems every day. They are also victims of scams, lose their deposits in chit funds or are victims of harassment by dishonest officials. The only difference is that the network of fraudsters is more visible, which discredits the entire community.
Historical Roots Of Corruption In Bengal
The historical roots of corruption in Bengal are deeply linked to the region’s colonial past and subsequent socio-economic changes. Kolkata, formerly called Calcutta, was the capital of British India until 1911 and was a centre of trade, administration and governance. The city was a center of wealth, commerce, and opportunities, attracting merchants, bankers, and bureaucrats from all corners of the subcontinent. However, this prosperity was accompanied by a culture of exploitation and manipulation. The British colonial administration itself was riddled with favoritism, bribery, and arbitrary decision-making. For example, land revenue collection systems such as permanent settlement created a situation where landowners (landlords) charged maximum revenue to farmers, often employing corrupt middlemen and enforcers to maximize their profits. This historical environment normalized the acceptance of breaking rules for personal or financial gain, sowing the seeds of systemic corruption in Bengali society.
After independence in 1947, West Bengal underwent radical socio-political changes. The partition of Bengal led to massive demographic changes, with millions of refugees from East Pakistan (now Bangladesh) settling in and around Kolkata. The city struggled with economic hardship, inadequate infrastructure and rising unemployment. In such circumstances, survival often meant finding alternative avenues of income, including shortcuts and manipulative methods. People knew at an early age that contact, influence, or direct bribes were often needed to access scarce resources, permits, or government services. Over the decades, these survival strategies took root, changed into normal behavior and led to an informal economy where breaking or breaking rules became commonplace.
In addition, the economic decline of the city in the second half of the 20th century exacerbated these trends. Factories in Kolkata, once a thriving industrial centre, closed, trade routes declined in importance and economic stagnation ensued. Lack of employment made people seek alternative, sometimes illegal, avenues to achieve financial stability. Over time, fraud and swindling, whether in finance, trade or daily transactions, became ingrained in the socio-economic fabric. Thus, the historical roots of corruption in Bengal are not the result of any one factor, but of a complex interrelationship of colonial heritage, economic pressures, social stratification and institutional weaknesses, which have created fertile ground for corruption, both small and large, to flourish
The Role Of Politics In Promoting Fraud Networks
Politics in West Bengal has played an important role in creating an environment where networks of fraud, sometimes openly, can flourish. For decades, the state has been dominated by strong political parties, whose influence has spread at every level of society, from municipal bodies to rural administration. This political dominance often created systems of patronage, where security, financial support, or access to resources could be achieved in exchange for loyalty to the ruling party. Cheaters quickly learned that associating with influential political figures not only provided security, but also legitimized their activities in a society governed by networks of partisanship.
Weak enforcement of accountability mechanisms further increased the impact of the political system on fraud. Elected representatives, municipal officials and bureaucrats often found it more beneficial to tolerate or support fraudulent activities in exchange for bribes. This allowed the scam networks to operate openly, in the belief that they would face minimal legal repercussions. The conflation of politics and organized fraud in Kolkata became particularly evident in major financial scandals, such as the Saradha and Rose Valley chit fund cases. The investigation revealed political patronage, where legislators and local politicians had a stake in these schemes, and used their influence to protect operators from prosecution. This relationship between politics and fraud was not just one of personal corruption, but also of systemic collusion, creating a complex ecosystem where scammers continued to thrive under political patronage.
Moreover, political instability and frequent changes in governance undermined institutional oversight. Different administrations either ignored ongoing scandals or exploited them for political gain, thereby establishing themselves in new forms. Over time, fraudulent networks adapted to the political landscape, forming alliances with those in power, institutionalizing fraud as a tolerable, sometimes profitable enterprise. This mix of politics and fraud has become a distinctive feature of Kolkata’s socio-economic environment, making it one of the most prominent centers of scandal in India.
How Police Collusion Strengthens Scammers
Police collusion in Kolkata has been an important factor in strengthening the scam. In many cases, police officers are not only passive supporters, but also active participants in fraud networks. Cheaters and scammers often claim that a portion of their earnings are regularly shared with local law enforcement agencies, giving them almost complete immunity from investigation. This arrangement of “security payments” ensures that even the most audacious scams operate with minimal risk. Investigative procedures are slow or stalled, cases are mysteriously closed, and informants or victims are threatened or neglected. Knowledge that bribery can neutralize enforcement mechanisms encourages scammers and institutionalizes the notion that fraud is both profitable and low-risk.
Police collusion is reinforced by the lack of accountability in law enforcement institutions. Bureaucratic red tape, fewer staff and limited resources create gaps that scammers take advantage of. Moreover, the authorities themselves can benefit financially from maintaining this relationship, as they often supplement their modest salaries with regular payments from fraudulent enterprises. In some cases, police are also involved in arranging scams, assisting in fundraising or ensuring that regulatory oversight is easily circumvented. This active cooperation reduces public confidence and creates an environment where criminals consider themselves untouchable.
Additionally, police collusion is often associated with political patronage. Officials supporting fraudulent networks often do so despite knowing that their actions are patronized by influential politicians, further strengthening the cycle of impunity. Victims of scams, despite filing complaints, often find that the law enforcement system is unresponsive, further reinforcing the perception that Kolkata is a city where fraud flourishes unabated. For decades, this has not only led to large-scale scandals, but has also normalized small forms of fraud in everyday life, as ordinary citizens believe that corruption exists at all levels of governance.
Case Studies Of Famous Scams Of Kolkata
Kolkata has been the epicenter of some of India’s most notorious financial scandals, each reflecting the intersection of fraud, political patronage and police collusion. For example, the Saradha chit fund scam affected millions of depositors in eastern India, and the estimated loss was more than thousands of crores of rupees. Operators promised high returns on investment, enticing mainly middle class and rural investors who relied on the arrangement. Investigations later revealed that politicians, bureaucrats and local law enforcement agencies had received huge bribes, causing the scandal to go on for years without interruption. The scandal became a symbol of how corruption and fraud can blend into the daily lives of ordinary citizens.
The Rose Valley scandal was another big affair, with a similar pattern. Investors were promised huge profits in fictitious business ventures, while operators enjoyed the patronage of influential political and bureaucratic figures. The scandal was only exposed when whistleblowers exposed its large scale and media pressure forced the authorities to act. Like Saradha, Rose Valley has highlighted the systemic failure of enforcement and the role of political and institutional collusion in making large-scale fraud possible.
Other cases like iCor have further cemented Kolkata’s reputation as a hub of financial scandals. What is striking in all these cases is the repeated pattern: fraudulent operators exploit the weaknesses of the system, political and police security shield them, and ordinary citizens bear the brunt of the losses. Overall, these case studies provide a deep insight into how systemic corruption, combined with public naivety and institutional weaknesses, creates fertile ground for fraud to flourish.
Corruption In Daily Life And How It Normalizes Fraud
Corruption in Kolkata is not limited to large-scale financial scams; It is prevalent in daily life and has become a normal part of normal life. From obtaining permits to basic municipal services, citizens are often faced with a maze of bureaucracy that promotes bribery and defiance of regulations. For example, obtaining a license for a business, registering property, or even getting water and electricity connections often plays the role of middlemen who secretly demand payment. Over time, such interactions lead individuals to accept corruption as a necessary step rather than an exception. Children see adults bribing as they grow up to circumvent the rules, making immoral behavior seem normal and even practical.
This generalization has serious consequences. This not only reduces trust in entities, but also creates a feedback loop where fraud and fraud become standard strategies of survival. Shopkeepers can overstate bills, landlords can exploit tenants without legal fear, and middlemen can manipulate government schemes for private gain. Indeed, the city is developing a parallel economy where personal gain often overshadows ethical considerations, and law enforcement rarely intervenes. Citizens learn that honesty can sometimes be costly, while breaking the rules provides efficiency, financial benefits, or security.
The presence of regular corruption also creates an environment where petty scams can turn into major financial frauds. People who have become accustomed to minor manipulation—like bribing an officer to speed up paperwork or falsifying simple documents—they can develop the confidence, skills and mentality to commit big scams. In Kolkata, this dynamic has given detailed chit funds, fake investment schemes and call-centre fraud an opportunity to take root. What starts as minor fraud for everyday convenience can turn into systematic deception, especially when political and police collusion ensures minimal results. Thus, everyday corruption fuels culturally and practically more sophisticated scandals, creating a city where fraud is linked to both survival and ambition.
Sociology And Psychology Of Why Fraud Flourishes
The sociology and psychology underlying the origins of fraud in Kolkata provide insight into why fraud has become so widespread. Kolkata has historically been a center of intellectual and cultural life, giving birth to generations renowned for their literacy, intelligence and motivational skills. When honest employment opportunities are limited, these same talents—eloquence, interaction and psychological manipulation— can turn into fraudulent activities. Scammers often exploit human psychology, using charm, authority, or fear to trick victims. This ability to understand and influence human behavior provides a significant advantage to fraudsters, especially in a society where institutional monitoring is weak.
Social networks and community structures also play a role. Fraud thrives in an environment where informal relationships determine access to resources and security. In Kolkata, neighborhoods and business communities often act as close-knit networks where information, influence, and bias are quickly disseminated. By taking advantage of these relationships, operators can recruit their peers, gain inside information or avoid investigation. The combination of personal ambition, social opportunity and weak enforcement creates fertile ground for scams and fraudulent practices.
Psychologically, individuals can justify their involvement in scams as a rational response to systemic inequalities. When ordinary citizens see widespread corruption among politicians, bureaucrats and law enforcement officials, they may conclude that breaking the rules is part of the natural process. This generalization reduces the moral cost of fraud and encourages opportunistic behavior. For generations, this mentality has led to a culture where fraud is not only tolerated, but in some circles it is appreciated as cleverness or ingenuity. Thus, both the social environment and psychological adaptation contribute to the persistence of fraud, and deeply embed it in the social fabric of Kolkata.
Kolkata’s Global Reputation In Call-Centre Scams
In recent decades, Kolkata has acquired a particularly notorious reputation for call-centre and online scams, and its influence has extended far beyond regional boundaries. Fraudsters exploit technological frameworks to reach victims in India and internationally, often by becoming representatives of banks, foreign corporations or government agencies. These call-centre scams, in which people are often persuaded to transfer money or reveal sensitive information, have become one of Kolkata’s most notorious global signs in terms of fraud.
The combination of educated youth, language proficiency and widespread unemployment in the city contributes to the development of these activities. Many young people, who are unable to find formal employment, are recruited into call centres where persuasion and fraud are essential work skills. They are trained to psychologically manipulate victims, using trust, technical knowledge, and scripted stories to extort money. Although these scams operate under illegal frameworks, they benefit from a level of tacit protection provided by local authorities, which often derive indirect benefits from operators.
Kolkata’s global presence in these fraud networks reinforces the city’s reputation for systematic fraud. Outsiders see it as a centre where scandals are industrial, organised and politically protected. International victims of online fraud often report that calls come from Kolkata, further reinforcing the perception that the city is uniquely linked to fraud. Although this reputation is exaggerated and countless law-abiding citizens are neglected, it has nevertheless become a distinctive feature of Kolkata in the eyes of the public, highlighting the intersection of technology, socio-economic pressures and institutional collusion in making fraud possible.
The Tragedy Of Common Honest Citizens Trapped In This System
The human cost of corruption in Kolkata is very high, especially for the common honest citizens who are trapped in a system bent on the side of opportunists and fraudsters. While scammers and their networks flourish on the one hand, ordinary people often bear the brunt of the consequences, both financial and social. Chit fund business, fraudulent investment schemes and bureaucratic bribery disproportionately affect middle-class and low-income groups, who often lack the resources to seek legal help. In many cases, victims lose their life savings, pensions or assets, leaving them economically unstable and socially depressed.
In addition to financial loss, there is also a psychological loss. Constant exposure to corruption reduces trust in institutions, reduces confidence in the rule of law and promotes pessimism. Children raised in such an environment absorb the belief that fraud and manipulation are necessary for survival, and this cycle continues for generations. Honest citizens have to grapple with the complex web of bribery and favoritism in everyday life, from access to government services to getting jobs, which leads to constant frustration and helplessness among them.
This tragedy is compounded by systemic inertia. Legal procedures are slow, enforcement is inconsistent, and informants face threats. Even when fraudulent handlers are exposed, prosecutions can be partial, delayed, or politically influenced. As a result, victims often feel left out, which increases resentment towards both the authorities and society. The gap between the thriving fraud networks and the vulnerability of honest citizens underscores a deep social injustice, which makes corruption not just a legal or economic problem, but also a deep human problem.
Why Is It Unfair To Blame “All Bengalis” While Scam Networks Are Flourishing There
Although Kolkata and West Bengal are known for cheating in public discourse, blaming “all Bengalis” is both wrong and unfair. The reality is that the area is home to millions of law-abiding, hardworking people who live their daily lives honestly despite the systemic corruption prevalent around them. Scammers and fraudulent networks, although very visible, represent only a small proportion of the population. Such over-generalization reinforces harmful stereotypes and obscures the structural and institutional factors that make fraud possible.
It is important to differentiate between individuals and systems. The fraudulent activities that are often attributed to Kolkata are possible with weak governance, political patronage and the connivance of law enforcement agencies— not by any inherent quality of the population. Indeed, ordinary citizens are often victims rather than partners. Many work tirelessly to uphold ethical standards in business, education and public service, yet sensational coverage of scams and fraudulent networks overshadows their contributions. Understanding this gap is vital to a nuanced understanding of corruption: systemic weaknesses allow few to operate unpunished, and the city’s reputation should not be mistaken for a reflection of its entire population.
Possible Ways To Reduce Corruption In The Future
Reducing corruption in Kolkata and West Bengal requires comprehensive reforms in governance, law enforcement and civic engagement. Strengthening institutional accountability is important: police, bureaucracy and political institutions must be held to high standards, and there must be transparent mechanisms for reporting and prosecuting misconduct. The protection of whistleblowers, fast judicial procedures and independent anti-corruption agencies can demolish the protective networks that currently protect fraudsters.
Economic interventions are also necessary. Expanding legitimate employment opportunities, improving financial literacy and promoting entrepreneurship can shift talents from fraudulent activities to creative sectors. Education programmes emphasizing ethics, civic responsibility and the long-term costs of corruption, especially among youth, can change cultural norms. Additionally, opportunities for petty bribery and procedural manipulation can be reduced by leveraging technology to reduce human intermediaries such as digital government services.
Finally, social awareness and collective action are of crucial importance. Citizens must demand transparency, hold local representatives accountable and support investigative journalism that exposes fraud without prejudice. Over time, a combination of institutional reform, economic empowerment, moral education and civic engagement can reduce the prevalence of fraud and restore public confidence. Although this path is complex, such measures will gradually transform Kolkata from a city historically associated with scandals to one with integrity, opportunity and responsible governance.
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