Harshad Mehta scam 1992

Harshad Mehta:

The Big Bull of Stock Market.

Harshad Mehta was born on 29 July of 1954 at lower middle class, Rajkot district, in a Gujarati Jain family. His father name was Shantilal Mehta a small-time textile businessman His early childhood was spent in Kandivali. Later, the family moved to Raipur, Madhya Pradesh (current Chhattisgarh). A cricket enthusiast, Harshad then came to Mumbai after his schooling for further studies and to find work. Harshad completed his B.Com in 1976 from Lala Lajpat Rai College, Mumbai and worked a number of different jobs for his next eight years. 

In the early 1980s, he went for an amateur clerical job at the brokerage firm, where he worked in a jobber profile for the broker Prasann Pranjivandas Broker who he considered his teacher. Over a tenure of ten years, in 1980, he served in positions of increasing responsibility in different brokerage firms. By 1990, he had risen to a position of eminence in the Indian money market, along within the media such as “Big Bull” and famous Business today magazine titled him as "Amitabh Bachchan" of the stock market. 

Harshad came into light when a journalist name Sucheta Dalal brought SBI inside story of 500 crores irregularities in her news article for the first time. From where the unboxing of India's biggest financial scam came into lime light. 

Grow More Research and Asset Management, with his financial assistance of many associates, when the Bombay stock exchange auctioned a broker's card. He actively started to trade as a trader in 1986.From where there was no looking back for him. Then he made a rise of nearly quadruple the Bombay Stock Exchange's Sensitive Index within a year to 4,387 point by April 1992, a steak since-thankfully-unmatched with the help of his money and his investors. Mehta took his selected stocks-which were shares of ACC Ltd, Apollo Tyres, Reliance Industries and his own Mazda Industries-along for the steak. The value of his personal holding rose by ten times during the period to an estimated Rs 2,000 crore. It was more than a tenth of the country's security budget for 1992-93.  In that time Harshad heavily benefited his investors by giving them 35-37% profit on their investment. This act made him the most trusted broker of the BSE. 

His dominance then began to tumble. In April, an internal State Bank of India (SBI) scrutiny found the bank was missing short by Rs 500 crore that Harshad owed them. He had 'borrowed' it from SBI on promises of providing Bank receipt from Punjab national bank.in this transaction period he uses this money which was issued on his name to fuel his play in the stock market as he does for past sort of time with different time, but this time A brokers' strike in BSE between brokers and BSE, market closure for several days prevented Harshad from cashing in stocks to repay the bank. The leaked to Times of India. 

Credit must go to a hard-penned bold article in The Times of India of April 23, 1992. Their source mentioned that Mehta had been asked by State Bank of India, the country's biggest bank, to "square up" Rs 500 crore transection, a massive sum for that time. Mehta then stood accused by the CBI of conspiracy, criminal breach of trust, and cheating under provisions of IPC. The money involved in the fraud was estimated to be Rs 5,000 crore to Rs 6,000 crore. 

As Times of India and other media publications, including Indian Express and India Today followed up that transection system,helped discovering my dimensions that earned the appreciation of even Wall Street's hardened loophole and also in banking system. Mehta wasn't the only broker in the game, tempering the securities market to manipulate stock prices. Further investigation suggested SBI wasn't the only bank in the role. Several banks including SBI were fully in the game of using BRs to leverage ever greater amounts and using these into quick loans and 'short-selling' bonds to buy them back at lower rates, looking to make profit.  

Being upset from his political colleagues in Delhi, who sided him at the time he needed them most, on the suggestion of his famous lawyer Ram Jethmalani went to host a live press conference where he reveled that PM P.V. Narsimha Rao have taken 1 crore as a token of political support to the government for 1991 election from him. And in return have supported in his dealings. Due to these statement finance minister Yashwant Sinha reigned. 

Later on, he was convicted to 5-year jail by judiciary of country. On day of 31 December 2001, Harshad Mehta was undergoing a criminal custody in the Thane prison complained of chest pain late at night and was then admitted to Thane Civil Hospital were died following a brief heart ailment, at the age of 47.  

Harshad Shantilal Mehta and his family members were charged with 76 criminal cases with a sum of 600 civil suits. Shortly after Mehta died in Tihar jail, all criminal cases against him were lessened but a sizeable number of civil suits to recover dues from the family remain unscathed.