Just to add some additional clarity to Bharath's conclusion, if you are using virtual scrolling mode, your data source schema should be expecting a 'total' result from the remote data provider. The kendo grid uses this value to calculate a height for the virtual scrollbar (it gets appended to the DOM inside the k-grid-content element as div.k-scrollbar-vertical > div). The grid calculates its virtual scroll height as: total * row-height + scrollbar-height. So, if your data response returns 0 for 'total', your value will be 17px and you won't see a scroll bar.
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