2. Mundhra case (1958):Mundhra scandal led to the resignation of the then finance minister T.T. Krishnamachari.
Haridas Mundhra was a Calcutta-based industrialist and stock speculator who got the government-owned Life Insurance Corporation (LIC) to invest Rs. 1.24 crores in the shares of six troubled companies belonging to Mundhra.
It was alleged that the investment was done under governmental pressure and LIC lost most of the money.
The irregularity was highlighted in 1958 by Feroze Gandhi of the Indian National Congress party, who represented the Rae Bareli seat in the Parliament of India.
As Feroz Gandhi was the son-in-law of Jawahar Lal Nehru, the matter escalated in the family and soured the relationship between Nehru and Feroz Gandhi.
Subsequently, the parliament had passed the Life Insurance of India Act on June 19, 1956, under which 245 firms were nationalized and consolidated under the Life Insurance Corporation.