Harshad Mehta was an Indian Stockbroker, who is known for the 1992 Stock Market Scam of over 4000 crore rupees Indian Rupees but some financial experts believe that Harshad didn’t do any fraud, he just found loopholes in the system.
|Real Name||Harshad Shantilal Mehta|
|Other Names||Amitabh Bachchan of Stock Market & The Big Bull|
|Date of Birth||29 July 1954|
|Age (when died)||47 years|
|Death Date||31 December 2001|
|Place of Death||Thane Civil Hospital, Mumbai|
|Died due to||Heart Attack|
|Born in||Paneli Moti, Rajkot District, Gujarat|
Harshad Shantilal Mehta was born on 29 July 1954 in Paneli Moti, Gujrat to Shantilal Mehta, who was a textile businessman, and Rasilaben Mehta, a housewife.
He spent his early childhood in Borivali with his other 3 siblings Sudhir Mehta, Hitesh Mehta & Ashwin Mehta. He went to Holy Cross Senior Secondary School in Raipur, Chhattisgarh & completed his graduation from Lala Lajpat Rai College of Commerce and Economics in Mumbai.
After graduation, Mehta did several different jobs like sold hosiery, cement contractor, sorted diamonds, insurance clerk, etc for almost 8 years.
While working as an insurance clerk in the Bombay office of New India Assurance Company Limited, Harshad started taking interest in the stock market which led him to quit this job and he started working as a Jobber for a stockbroker, Prasann Pranjivandas, in the stock market.
|Father Name||Shantilal Mehta|
|Mother Name||Rasilaben Mehta|
|Brothers||Ashwin Mehta, Sudhir Mehta & Hitesh Mehta|
|Marital Status||Married (At the time of his death)|
|Wife Name||Jyoti Mehta|
|Son Name||Atur Harshad Mehta|
Related: Samyabrata Ray Goswami
Facts & Info
- Harshad is known for his biggest stock market scam in the Indian stock market history in 1992.
- After working as a Jobber to a stockbroker, Prasann Pranjivandas, Harshad eventually became a member of the Bombay Stock Exchange in 1984 and made his own stock brokerage firm known as “GrowMore Research and Asset Management”.
- Mehta’s way of doing stock market business was straightforward, he would take a huge amount of money from government security markets for a short time without anyone noticing it and invest it in his already selected securities.
- His invested amount was so enormous that the share would rise greatly but falls back down after he sold those shares.
- These rises forced people to invest in that security, which causes more rise, in this way Harshad secretly liquidate his shares and pay off the money he took from the markets and banks.
- He took advantage of these loopholes in the system and increased the index of the Bombay Stock Exchange from 1000 to 4500.
- Some of the companies in which he invested are Tata Iron and Steel, Reliance, ACC cement, Apollo tires, Videocon, etc.
- He handled the ACC cement’s share and made a rise in its price from RS 200 to RS 9000 in the time span of 3 months.
- At the end of the year 1991, his business had a huge success that media started naming him as “Amitabh Bachchan of Stockmarket” and “The Bigg Bull”.
- At that time, he was living a luxurious life with 15,000 square feet of a penthouse in Mumbai with a swimming pool and golf area.
- Not just these, he also owned several fancy cars and used to travel in a 40 Lac INR worth of car Toyota Lexus.
- His schemes were going uninterrupted until Sucheta Dalal, a journalist who taken interest in his way of income from his luxurious life eventually found the key behind Harshad’s success in the stock market and brought this to the public.
- She published an article in the Indian times about how Harshad Mehta scammed more than 500 crore INR to the treasury of the State Bank of India.
- In 1993, the year after she exposed Mehta, she published her book named The Scam: Who Won, Who Lost, Who Got Away, this book is based on this scam.
- In November 1992, the Central Bureau of Investigation arrested Harshad Mehta along with his brothers, who were also involved in this scam with Mehta.
- Harshad was charged with 72 criminal offenses and 600+ criminal actions were registered against him by several institutes & banks.
- He hired a famous veteran lawyer, Ram Jethmalani, for his case. Mehta spent 3 months in jail and was bailed out by the High Court of Bombay.
- After getting bailed out from the jail, Mehta disclosed that he paid 1 crore rupees to PM Narasimha Rao, but Indian National Congress Party denied this, also there wasn’t any evidence that he paid this money to PM Narasimha Rao.
- Reserve Bank of India asked the Janakiraman Committee to do their investigation on this case in 1992 and after this investigation, it comes into the light by the committee that it was the scam of 4025 crore INR which is equal to today’s 24000 Crore INR.
- Harshad Mehta along with his 3 other companions was sentenced to 5 years to jail in September 1999.
- While Mehta was in Thane Prison, he reported his chest pain and was taken to Thane Civil Hospital.
- On 31 December 2001, Mehta died due to a sudden heart attack .
- Inspired by Mehta’s lifestyle and 1992’s scam, the “Scam 1992” series was released by Sony Liv in 2020, and later in 2021 “The Big Bull” is launched on the same story.
How Harshad Mehta Died?
After being proven guilty, Harshad was sentenced to 5 years in prison and was moved to Thane prison in September 1999. While in captivity, He reported pain in his chest and was shifted to Thane Civil hospital where he died due to a sudden heart attack on 31 December 2001.