If you know about the stock market, then you must have heard the name of Harshad Mehta. Harshad Mehta is the man who badly rocked the financial market of the country in the 1990s.
Economic reforms started in the country in 1991. The year 1990 to 1992 was a time of great change for the Indian economy. But in the meantime, a scam came to light, which made historical changes in the process of buying and selling of shares. Harshad Mehta was responsible for this scam. The scam was worth about Rs 4,000 crore and only after that SEBI was given the power to stop the disturbances in the stock market.
The main accused in the scam, Harshad Mehta, died in 2002. But memories of the much-talked-about stock market scam of 1992 are now in the minds of very few people.
Who is Harshad Mehta?
Harshad Mehta was born on 29 July 1954 in Panel Moti, Rajkot Gujarat.
His childhood was spent in Kandivali, Mumbai.
He attended Holy Cross Beron Bazar Secondary School.
Mehta studied B.Com from Lajpat Rai College.
For eight years he did small jobs.
His first job was as a salesperson with New India Assurance Company Limited.
Then he joined a brokerage firm named Harijivan Das Nemidas Securities.
In 1984, he started his own company called Grow More Research and Asset Management and took membership as a broker at BSE.
Mehta learned every maneuver in the market from Prasant Parivajindas.
Mehta was called 'Big Bull' as he started Bull Run in the stock market.
How did the breakup happen?
The stock market grew rapidly in 1990, for which broker Mehta was held responsible and was given the status of 'Big Bull'.
The money was disclosed in April 1992.
Mehta used to take advantage of banking rules and used to invest millions of rupees in the stock market without telling the banks.
Mehta used to raise money from banks by taking a loan for 15 days as a middleman between two banks and then used to return the money to the banks by making a profit.
When this thing came to the fore, the stock market started to fall sharply.
Mehta used to make fake BR from one bank, after which he would get money from another bank too easily.
After the disclosure, Mehta was charged with 72 criminal charges, and a civil case was filed.
What was the punishment and how did death happen?
Mehta was facing several cases, but he was convicted in only one case.
Finding him guilty, the High Court imposed a five-year sentence and a fine of Rs 25,000.
Mehta was lodged in Thane jail.
Late on 31 December 2001, he complained of pain, after which he was admitted to Thane Civil Hospital.
He died in the hospital itself.
Even 25 years after the scandal, its recovery was going on from his family. The custodian sold more than Rs 6,000 crore to Mehta's properties and released them to the banks and income tax department. In 2017 itself, Mehta's family members gave Rs 614 crore to the bank.