Anti-Corruption Day Special: This is how Big Bull Harshad Mehta’s demise happened, the story is very interesting!
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Prime Minister PV Narasimha Rao Indian Finance Minister in the government of Manmohan Singh India initiated an economic reform in 1991, during which many important changes took place in the country’s economy. During this period, a serious scam broke out which led to significant changes in the process of buying and selling shares.
Rs 4000 crore scam
Stock broker Harshad Mehta was behind this scam, and he had committed a scam of around Rs 4000 crore, which can be considered to be around Rs 50 thousand crore in today’s terms. Subsequently, the Securities and Exchange Board of India (SEBI) was established to prevent irregularities in the stock market.
Harshad Mehta passes away
Harshad Mehta, who was the main accused, died in 2002, but before his demise in 1992, the memories of the stock market scam remained in the hearts of people.
Harshad Mehta early life
Harshad Mehta was born on 29 July 1954 in Paneer Moti, Rajkot, Gujarat, and spent his childhood in Kandivali, Mumbai. He studied B.Com from Lajpat Rai College and then established his brokerage company Grow More Research Management in 1984.
‘Big Bull’
Harshad Mehta for himself and his growth in the stock market ‘Big Bull’ Was called and became famous for accelerating the stock market in the year 1990. Those who followed Harshad called him Bachchan of BSE.
This is how banks were used
He borrowed from banks and invested the money in the stock market and then returned the borrowed money after earning profits. After such financial activities, when information about it became public, the stock market crashed and the Security and Exchange Board of India was established to prevent such scams.
ACC share story
One share of ACC, a cement manufacturing company, was priced at Rs 200, within three months its price reached close to Rs 9,000. Other investors started investing money in companies based on Harshad’s opinion. Within a few years, broker Harshad’s image changed into a business tycoon and he started earning crores. Amidst all this there was a question that how was he earning so much money in such a short time. The year 1992 came and famous journalist Sucheta Dalal exposed the business of Harshad Mehta.
Reporter Sucheta Dalal
According to Sucheta, the reporter who exposed Harshad Mehta’s scam, Harshad would first get a Bank Receipt (BR) made and then withdraw the money from the bank and put it in the stock market. When he made profit from other shares, he used to return the money to the banks. Apart from this, he took advantage of many technical flaws and invested the deposited capital of the banks in the stock market, in this entire process some bank employees were also in connivance. When the revelation was made, all the banks demanded the money back from Harshad and the stock market crashed badly.
Accused of giving bribe of Rs 1 crore to Prime Minister PV Narasimha Rao
The turning point in this case came when in the year 1993 he accused Prime Minister PV Narasimha Rao of giving a bribe of Rs 1 crore. However, this entire issue was completely denied by the government and later by the CBI investigation. After this, the Supreme Court sentenced him to 5 years in a case and imposed a fine of Rs 25,000. Harshad Mehta, lodged in Thane jail, suddenly suffered chest pain on December 31, 2001 and when he was admitted to the civil hospital, he died there.
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