Harshad Mehta WikiBio, Career, Family, 1992 Scam, Net Worth, Lifestyle, Real Facts

Harshat-Mehta
Harshat-Mehta

Harshad Mehta WikiBio, Career, Family, 1992 Scam, Net Worth, Lifestyle, Real Facts

Introduction

Harshad Mehta- The Big bull, also known as the Man of integrity and the superstar of Bombay Stock Exchange like Bachchan. He was known for his 5000 crores scam of State Bank Of India which was out in the year 1992. He was born on 29 July 1954  in Rajkot and did his high school education in Raipur and further came to Bombay to do his graduation In Bachelors of commerce in Lala Lajpat Rai College of Bombay.

Harshat-Mehta
Harshat-Mehta

After the completion of his graduation, he did various odd jobs like selling garments and appliances as he didn’t know what he is going to be in the future. Then he started working in the New India Insurance company as a salesperson, there he obtained knowledge about the minute things of the stock market thus further he launched his own company and became a member of Bombay Stock Exchange.

Then he started to come on magazines and became famous, whenever he took any share it would touch the sky i.e if one took the share at the price of 200rs it would go up to 9000 rs, so people used to call him The Bigg Bull. But the journalist of Times Of India named Suchita Dalal would know from where does this money came from.

She knew that Harshad Mehta was taking the loan of 15 days from the banks and would repay it within 15 days, as the banks don’t give loans for 15 days so he would use his Gujarati business mind to take money from the bank. But further he was unable to pay the loan to the bank due to which he came into limelight and thus it was named as The Harshad Mehta Scam’.Further, he was badly investigated by the CBI and finally was arrested along with his brother Ashwin Mehta. Thus in jail, he suffered from a Heart Attack due to which he lost his life on 31st December 2001.

Career

As after his graduation, he started working as a salesperson in New India Insurance Company where he gained lots of knowledge about the stock market and thus further he opened his own company called Grow More Research and Management consultancy  and started gaining popularity

Scam

Whenever Harshad Mehta used to take any share it would convert into gold so he was known as the Bachchan of BSE. As he would know that whenever banks need money they would keep the bonds as collateral and take money from other banks but in reality, it didn’t involve the exchange of any bonds, as it would take place only in the form of a receipt, and he would take the money of securities and add it into the market and made profits and whenever it was the time for repayment of the money he would sell his shares and give the money back to the bank.

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Harshad Mehta would use that money to manipulate the stocks i.e He use to add crores into any stock due to which the prices of stock would rise higher and thus other people also then buy the stock and thus that stock price would touch the sky and then Harshad Mehta would sell his shares at a higher price and would be made the profits.

How the scam was exposed:

The journalist Sucheta Dalal did her law at Bombay college and further became the business journalist in Times Of India during that course when Harshad Mehta was in limelight and was the Hero, she got the tip from Sharad Bilari that 500 crores are missing from SBI’s book so when she got confirmation of this news she started investigating it deeply and she also stared covering the manipulation of the City banks, Bear cartels but the action was not taken against them.

Harshad-Mehta-photo
Harshad-Mehta-photo

In the year 1998 when Harshad started manipulating the stocks like Videocon, BPL, staurolite through the Damayanti group, he rised the stock of videocon from Rs23 to Rs 178 within 4 months, thus when this manipulation was out SEBI started taking actions against Harshad Mehta. It was also seen that he had given the bribe of Rs  1 crore to Prime minister P.V Narsimha Roa in the year 1993 to get out of bail.

Though along with this he was not the only one to do so, along with this other people like Manu Manek were doing such scams but as Harshad Mehta was earning profits within a short period of time which was not seen by the other people who were already earning profits from a market that’s why they started a trap to expose Harshad Mehta. As Harshad Mehta’s vision was to strengthen the economy of the country.

Thus this scam exposed the loopholes in the Indian banking system and Bombay Stock Exchange transaction system and further SEBI introduces new rules to cover these loopholes.

Effect of the Scam:

The Harshad Mehta Scam had a huge impact on the:

1)Innocent people: This scam had a great impact on the people’s lives who had invested lakhs in the stock market and when the crash took place people lost their lives because they were in shock, most the people got frustrated and due to which they suffered from high blood pressure and lost their lives at an early age, some also hanged themselves to death.

It is also said that as many as there are stairs in BSE in that number there are dead bodies of the people who lost their lives during the market crash as for some of the stock markets was the only source of income.

2)Stock market: The Sensex which was about 4467 points in January 1992 had a downfall of about 2529 points in August.

3) Banking System: After the crash happened The Vijaya Bank chairman committed suicide and also the chairman of NHB was also out, the reason behind this was they were also involved in this scam.

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4) Political environment: It was claimed that he had given the bribe of Rs  1 crore to Prime minister P.V Narsimha Roa in the year 1993 to get out of bail.

Films and books:

A web series is also been released on Harshad Mehta which Scam 1992 in which Patrik Gandhi has played his role and had been the blockbuster web series.
Sucheta Dalal also wrote a book on Harshad Mehta’s scam which was named” The scam: Who won, Who lost, Who got away.

Family

Harshad Mehta’s wife’s name is   Jyoti Mehta and his brother’s name is  Ashwin Mehta.

Siblings

As there was a number of cases filed against Harshad Mehta regarding this scam, So his brother Ashwin Mehta studied law and at the age of 50  and currently he is the High court and Supreme court lawyer and also he acquitted the SBI case in the year 2018 and also returned about 1700 crores of the 5000 crores scam.

Harshad Mehta had another brother whose name was Sudhir Mehta he also did a scam of Rs 86 lakhs in some financial firm and he was absconded in the year 1999 but later in the year 2012, he was arrested by CID. He was also the 3rd partner in Harshad Mehta’s Growmore firm.

Wife

His wife Jyoti Mehta has also Fought many legal cases and in the year 2014, the list of assets was found in which she filed a case against a Federal bank and broker of Rs 6 crores and thus will get the 6 crores along with 18 % of interest.

SON

His son Aatur Mehta is also currently a trader and investor just like his father. And he was seen to be taken a huge amount of stakes of Fair Deal Filament in the year 2018, which further got merged in Shahlon silk Ind. He was seen to be taking about 5% of the company’s stake till September 2020. He is mostly seen away from the limelight.

Net worth

Harshad Mehta’s net worth was around 9014 crore in the year 2001 and he would get around 1000cr from the stock exchange.

Lifestyle

Harshad Mehta was fond of cars he owned:

1)Lexus LS 400: This car had a very important role in his life and it was a rare car and the price of that car in the year 1990 was about 50 lakhs.
2) Contessa classic, the price was about 5 to 6 lakhs.
3) Fiat Padmini, which is known as Mumbai’s famous taxi.
4)Ambassador, which was worth Rs 4to 6 lakhs at that time.

He also Owned a luxurious penthouse in worli for which he paid around 30 crores. That house involves luxurious things like a Theater, Golf ground, a private swimming pool that was also attached to his apartment.

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Death reason

There were about 72 criminal cases filed against him and 600 civil Actions suits by Banks and institutions. He was on trial for about 9 years and died due to cardiac arrest in jail.

Unbelievable Facts:

  1. Harshad Mehta was born in a middle-class family and came to Mumbai with 40rs in his pocket.
  2. He was known as the BigB of the Stock market.
  3. He paid the highest income tax in India which was about 24 crores in the year 1992 and, if he was alive then he would have been richer than Mukesh Ambani.
  4. He owned a lavish penthouse in Worli and a fleet of luxurious cars.
  5. He manipulated the Sensex and made it surge from over 1000points to almost 4500 points.
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Conclusion :

Thus In one of his interviews, Harshad Mehta said that” The whole scam or the irregularities has not been committed by one person or one group of persons it is the whole business and now there is a confession from the RBI that they were aware of this since a year, so if they couldn’t change it or the banks who were the deciding authorities, they are having the big say in the market while the brokers are just a small segment of it and also said that

“I won’t say I am a hero, let me be what I am and I am proud of what I am”.

This story of Harshad Mehta also told how the rare and honest journalist put forward the loopholes of the Banking system through Harshad Mehta.

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Thus there are a number of lessons to be taken from his life as he use to say that “ The Biggest Risk is not taking any Risk” if one knows about the opportunities coming into one’s life, one should take the risk to get success. And also there are other lessons like keep learning and growing and also Saturation comes in the Business, not in the Brain’. He also used to believe that What is a success is the next chapter after failure. Thus one should not stop doing good work and good deeds.

 

FAQ About Harshad Mehta

IS HARSHAD MEHTA FAMILY STILL RICH?

Yes HARSHAD MEHTA’S family is not as rich as HARSHAD MAHTE was but as his brother ASHWIN MEHTA and his net worth is around 20-30CR.and HARSHAD MEHTA’S wife JYOTI MEHTA might have shares on their names and also

HOW DID HARSHAD MEHTA DIED?

There were about 72 criminal cases filed against him and 600 civil Actions suits by Banks and institutions. He was on trial for about 9 years and died due to cardiac arrest in jail.

HARSHAD MEHTA FAMILY TODAY?

HARSHAD MEHTA’S brother ASHWIN MEHTA is a LAWYER and thus practices at high court and his wife JYOTI MEHTA also solves many cases filed against HARSHAD MEHTA.

HARSHAD MEHTA MANIPULATED STOCK?

He owned shares of Associated Cement Company (ACC), which saw an inexplicable surge in price from a mere Rs. 200 to Rs. 9,000.

HARDHAD MEHTA NETWORTH IN 1992?

A self-made millionaire, Harshad Mehta's net worth was Rs 3,542 CR in year 1992 when he was at the peak of his broking career.

WHO WOULD BE MORE RICHER HARSHAD MEHTA OR AMBANI?

Just before the exposure of the SCAM he had paid the tax of about 24 CR and if he would be alive today then he would be more richer

 

Scam 1992 – The Harshad Mehta Story | Official Trailer | Streaming from 09-10-2020

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