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Harshad Mehta Biography, Scam 1992
Harshad Mehta Biography: Today in this article you will know everything about Stock Market King HARSHAD MEHTA BIOGRAPHY, SCAM 1992, LIFE JOURNEY, WIFE, NET WORTH, DEATH, FRAUDS & Many more
Harshad Mehta, one of the most talked-about names of the 1990s, was not only a sharp businessman but also mastered manipulation at his fingertips. Within a few years, he reached the sky, and then, he crashed just as badly! His life and journey from childhood to becoming the man with twenty-seven criminal charges is worth knowing.
So, let’s see what we have on the infamous Harshad Mehta Biography & his scam 1992 –
Date of Birth of Harshad Mehta:
Harshad Mehta was born on 29th July 1954.
What is Harshad Mehta’s Birthplace?
Harshad Mehta was born at Paneli Moti in Rajkot district, Gujarat.
What is the cast of Harshad Mehta?
Harshad Mehta belonged to a Jain family.
Where did Harshad Mehta Grow Up?
Harshad Mehta spent his childhood in Borivali where his father’s textile business was based.
What is Harshad Mehta’s Educational Qualification?
Harshad Mehta finished his schooling at Janta Public School at Camp 2 Bhilai. Then, he moved to Mumbai to study B. Com at Lala Lajpatrai College.
What Jobs Did Harshad Mehta Do Before Getting into the Stock Markets?
After graduation in 1976, Harshad Mehta dwelled in many jobs such as selling cement, hosiery, and cataloging diamonds for the next eight years. He also worked as a sales employee in the New India Assurance Company Limited (NIACL). During this period Harshad Mehta got interested in the stock market and finally quit his job to enter the ‘profiting’ market!
Harshad Mehta’s Career in the Brokerage Firms –
In the early 1980s, Harshad Mehta worked under broker Prasann Pranjivandas at the brokerage company named Harijivandas Nemidas Securities. Harshad Mehta considered Prasann Pranjivandas his ‘Guru’.
When did Harshad Mehta Come to the Limelight?
By 1990, Harshad Mehta settled his position in the Indian securities industry through working in several brokerage firms. He actively began trading in 1986 when numerous renowned companies started investing in his firm. And he kept on growing as an exceptional broker. Popular media houses began bringing him under the spotlight. Business Today even called Harshad Mehta the ‘Amitabh Bachchan of the Stock Market.’
Why is Harshad Mehta Called ‘The Big Bull’?
When under Harshad Mehta’s trading in the Associated Cement Company (ACC) increased the company’s share in the market massively, he was seen as a star! Also, Harshad Mehta’s justification of such growth and his so-called ‘replacement cost theory’ made the world name his “The Big Bull”.
What are the Luxurious Items Owned by Harshad Mehta?
Harshad Mehta lived in a 15,000 square feet sea-facing penthouse in Worli which had a mini golf course, swimming pool, and his personal garage. He also has a selection of luxury cars such as Toyota Corolla, Lexus LS400, and Toyota Sera.
How Many Criminal Charges Were There Against Harshad Mehta?
27 criminal charges were brought against Harshad Mehta, out of which he was convicted of four.
When did Harshad Mehta Die?
Harshad Mehta passed away on December 31, 2001, in Thane, Maharashtra.
How did Harshad Mehta Die?
Harshad Mehta died of a sudden heart attack at the age of 47.
How Long Was Harshad Mehta Imprisoned for?
Harshad Mehta served a criminal penalty of 5 years of rigorous imprisonment.
Harshad Mehta’s Journey over the Years –
1986 – Began trading actively as a broker.
1990 – Came to fame for the first time with pathbreaking success.
Named ‘The Big Bull’ by media.
1991 – Securities fraud using the banks got exposed through a report in The Times of India by journalist Sucheta Dalal.
Infamous Frauds Led by Harshad Mehta –
THE STAMP PAPER FRAUD:
Harshad Mehta used to squash out huge sums from several banks and invested the amounts in the share market. His so-called ‘reason’ for borrowing the money was that he will provide greater interest and buying securities from different banks. At that time, banks were required to buy securities through brokers, and Mehta very cleverly used this for his gain. By pumping up the share values of big companies like ACC, Videocon, Sterlite Industries, Mehta got the money he wished for. His master plan resulted in ACC share to hike up from Rupees 200/share to around rupees 9000/share within three months!
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THE Harshad Mehta”s BANK RECEIPT FRAUD:
The seller of securities used to hand over a BR to the buyer as proof of their deal. The BR was actually a bill or receipt issued by the selling bank. Harshad Mehta’s plan was to get his hands on fake BRs issued by banks that were not backed by any kind of government securities. With these fake BRs, Mehta collected money from other banks making them believe he is to use the loaned sum for government securities.
With this, Harshad Mehta kept on controlling the stock market. The moment he would sell his shares the whole market would crash as Mehta was the one to book the profits in the end!
Harshad Mehta Biography
SCAM 1992:
While forming a ready-forward deal between two banks, Mehta as the broker would handle all the funding-oriented works. And most of the time the two parties would not even know who they are dealing with as it is the broker who is managing the whole thing. The major thing was that the brokers pretended to be managing the transactions on behalf of banks to maintain legality.
Now, Harshad Mehta created fake BRs so he could gather unsecured loans from various banks. He used small banks to issue them so the whole thing wouldn’t come under the radar. After getting the money in hand, Mehta invested in the stock market to hike the stock prices. The endgame was selling his shares for huge profits and return the loaned money to the bank. By that time the fake BRs were retired in the eyes of the bank.
With Sucheta Dalal’s article in The Times of India on April 23, 1992, Harshad Mehta’s whole tricks got exposed. By that time, the banking system had been conned again and again by Harshad Mehta and the money involved was around rupees 40 billion. Reportedly, several big names such as Citibank, Aditya Birla, many politicians, and even the Governor of RBI S. Venkatraman had all played a role knowingly o unknowingly in Mehta’s historic scam.
Harshad Mehta in the Pop Culture
- Journalists Sucheta Dalal and Debasis Basu wrote the book The Scam: Who Won, Who Lost, Who Got Awaybased on several scams in India which also included Harshad Mehta’s master-planned frauds.
- In 1993, the movie Aankhein portrayed a role greatly inspired by Harshad Mehta.
- Harshad Mehta’s scandals were represented in the movie Gaflawhich was premiered in the Times BFI 50th London Film Festival in 2006.
- In 2018, the daily soap Yeh Un Dino Ki Baat Hai showed Harshad Mehta’s character.
- In February 2020, a web series named The Bull of Dalal Street was released in Ullu App. Harshad Mehta’s scams were showed in it.
- SonyLIV released Scam 1992 in 2020 which was inspired by Sucheta Dalal’s book on Harshad Mehta’s frauds. Gujarati superstar Pratik Gandhi portrayed Mehta’s character. The show became one of the biggest successes on the OTT platforms.
- The movie The Big Bullwas also released based on Harshad Mehta’s scams where Abhishek Bachchan played Harshad Mehta.
HARSHAD MEHTA FACTS
Full name: Harshad Shantilal Mehta
Birth: July 29, 1954
Birthplace: Paneli Moti, Rajkot, Gujarat
Zodiac Sign: Leo
Father: Shantilal Mehta
Mother: Rasilaben Mehta
Education: B. Com
Occupation: Stockbroker
Wife: Jyoti Mehta
Son: Atur Mehta
Brothers: Ashwin Mehta, Sudhir Mehta, Hitesh Mehta
Death: December 31, 2001
Cause of Death: Heart Attack
Harshad Mehta Net Worth: INR 3542 Cr. (2021)
Interesting Fact about Harshad Mehta
Reportedly, if Harshad Mehta were not exposed and continued with his scams, he would have been richer than Mukesh Ambani! In 1992, before his frauds got exposed, Harshad Mehta paid income tax of an amount of Rs 24 Cr.
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