Harshad Mehta is one of the most well-known figures in the history of the Indian stock market. He rose to fame in the 1990s due to his involvement in one of the most significant financial scandals in India’s history, known as the Harshad Mehta Scam. His story is a complex one, filled with dramatic rises and falls, and it has since been the subject of numerous books, documentaries, and series. Harshad Mehta was born into a middle-class family in Mumbai.
Profile
| Category | Details |
|---|
| Full Name | Harshad Shantilal Mehta |
| Date of Birth | July 29, 1954 |
| Place of Birth | Paneli Moti, Rajkot district |
| Ethnicity | Gujarati |
| Nationality | Indian |
| Career | Stockbroker, Investor, Businessman |
| Famous For | 1992 Securities Scam (Harshad Mehta Scam) |
| Stock Market Role | Known as the “Big Bull” for his manipulation of stock prices and market control |
| Net Worth (at peak) | Estimated at ₹5,000 crore (~$1 billion) during the height of his success |
| Wife | Jyoti Mehta |
| Children | Aatur Harshad Mehta |
| Death | Died on December 31, 2001, due to heart failure, at the age of 47 |
Rise to Fame and Stock Market Success
Harshad Mehta became famous for his aggressive and bold stock market strategies, particularly for creating an artificial bull run in the stock market. He is often credited with being the “Big Bull” of the Indian stock market during his heyday.
In the early 1990s, Mehta successfully manipulated the stock prices of several companies using a combination of insider trading, manipulation of public information, and exploiting loopholes in the banking system. He was known for his ability to drive stock prices up to astronomical levels, creating the illusion of a booming market. Harshad Mehta’s most notable success was his manipulation of the Securities Scam in 1992.
Harshad Mehta Scam (1992)
The 1992 Securities Scam, also known as the Harshad Mehta Scam, was one of the biggest financial scandals in India’s history. Mehta was accused of embezzling money through fraudulent transactions in the stock market. The scam primarily involved the manipulation of the Government Securities (G-Sec) market, where he used bank receipts and securities to secure loans and illegally move funds. He allegedly used these loans to buy shares, inflate their prices, and create an artificial market.
Mehta was able to siphon off billions of rupees (around ₹5,000 crore, approximately $1 billion) from various public and private banks. The scam came to light in April 1992 when journalist P. Sainath uncovered irregularities. As a result, Mehta’s empire collapsed, and the stock market saw a major crash, wiping out the investments of thousands of people.
Harshad Mehta was arrested in 1992 and faced charges related to the scam, including fraud, money laundering, and misuse of funds. However, despite multiple legal proceedings, Mehta’s actual role in the scam and the full extent of his financial dealings have never been conclusively proven in court.
Harshad Mehta Net Worth
At the peak of his success in the early 1990s, Harshad Mehta’s wealth was estimated at over ₹5,000 crore (around $1 billion). His wealth came from his strategic manipulations in the stock market and his ownership of several assets, including properties and shares in multiple companies.
However, following the scam, Mehta’s wealth was largely eroded due to legal battles and the subsequent loss of his market holdings. His assets were seized by the government and the banks, and his net worth was significantly reduced. Some estimates suggest that his wealth at the time of his downfall might have been closer to ₹100 crore (approximately $15 million).
Harshad Mehta Wife and Children
Harshad Mehta was married to Jyoti Mehta, an Indian woman who maintained a low profile during the years of his fame and controversy. The couple was blessed with a son named Aatur Mehta, who was very young at the time of the scam. After Harshad’s death in 2001, Jyoti focused on raising Aatur away from public scrutiny.
Harshad Mehta Death
After being involved in the Securities Scam and facing years of legal proceedings, Harshad Mehta’s health deteriorated. On December 31, 2001, Harshad Mehta died due to heart failure in Mumbai. He was only 47 years old at the time of his death.
His death came after he had spent years in and out of courtrooms, with various legal battles regarding the scam. Despite the charges against him, many people in the finance world still view him as a mastermind who could have been a brilliant investor, had he chosen a more ethical route.
Harshad Mehta Legacy and Impact
Harshad Mehta’s life and career have left a lasting impact on India’s financial sector. His rise and fall serve as a cautionary tale about the risks of stock market manipulation and the potential for financial systems to be abused for personal gain. The Harshad Mehta Scam exposed numerous weaknesses in India’s banking and financial systems and led to several reforms in the stock market to prevent future frauds.
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FAQs
What was the 1992 Securities Scam?
The 1992 scam involved Harshad Mehta fraudulently obtaining funds from banks using fake bank receipts (BRs) and investing them in the stock market to inflate prices. He used the inflated prices to profit and return the funds before anyone noticed, but the system eventually collapsed.
How much money was involved in the scam?
The scam involved approximately ₹5,000 crore (around $1 billion USD at the time).
What was Harshad Mehta’s net worth at the peak of his career?
At the height of his stock market success, his net worth was estimated to be over ₹5,000 crore, making him one of the richest and most influential individuals in India at the time.
Was Harshad Mehta convicted?
He was arrested in 1992 and faced over 70 criminal charges and 600 civil suits. He spent several years in jail during investigations but died before most of the cases reached a final judgment.
When and how did Harshad Mehta die?
Harshad Mehta died on December 31, 2001, at the age of 47, due to a heart attack while in custody at Thane Civil Hospital.
Who was Harshad Mehta’s wife?
He was married to Jyoti Mehta, who maintained a private life during and after the scam. She stood by him through his legal troubles and later fought legal cases to recover financial claims.
Did Harshad Mehta have children?
Yes, Harshad Mehta and Jyoti Mehta had one son, named Aatur Mehta.
