Did you know that Harshad Mehta was called the Big Bull of the Indian stock market in 1992? He was not a regular businessman on Dalal Street in the early 1990s, but Mehta’s financial scandal swayed the nation. Born into a humble being in Mumbai, Harshad Mehta’s journey gradually rose to immense financial power. He propelled innovative strategies and aggressive trading tactics that put him at the forefront of the stock market. However, his quick ascend was also followed by a dramatic drop that shook the Indian financial system. If you are also keen to know more about his net worth, lavish lifestyle, and the controversies about one of the largest financial frauds in India’s history.
Who was Harshad Mehta?
In 2020, a web series, namely Scam 1992, was released and the series was based on the infamous Harshad Mehta. Harshad Shantilal Mehta, aka Harsh Mehta, was a stock market broker who was born in Rajkot, Gujarat and later moved to Mumbai after completing his education. He started his career in sales at New India Assurance Limited in Mumbai and quit his job in the 1980s to join a brokerage firm. This is where he met Prasann Pranivandas and Mehta found his way around to become the “Big Bull” in the Indian stock market.
| Event | Date |
| Born in Paneli Moti, Rajkot | 1954 |
| Began career as a clerk at the New India Assurance Company | Early 1980s |
| Started his own brokerage firm, Mehta Stock Brokers | 1987 |
| Became known for his aggressive trading strategies and innovative financial instruments | Late 1980s |
| Involved in a series of financial scams, including the securities scam of 1992 | 1992 |
| Arrested and charged with fraud, money laundering, and other financial crimes | 1992 |
| Acquitted of some charges but convicted on others | 1996 |
| Released from prison on bail | 2001 |
| Died of a heart attack | 2001 |
Harshad Mehta’s Net Worth and House
Harshad Mehta’s net worth at his peak still remains a topic of speculation. However, it is generally to have been hundreds of crores of rupees. As a self-claimed billionaire, Mehta made approximately $475 million when he was alive. Besides his premium property, the “Amitabh Bachchan of the Indian stock market” owned a fleet of 15 to 20 cars – he also owed an imported Lexus LS 400. In addition, Mehta owned HM Contessa, Fiat Padmini, and Mercedes Benz W126. It is essential to note that Mehta’s wealth came from illegal and unethical means, even including the securities scam.
Harshad Mehta’s House
Harshad Mehta owned eight inter-connected lavish apartments in Madhuli Society, in Worli. His house was equipped with amenities such as a mini theatre, a billiards room, a private swimming pool, etc. Mehta converted the eight apartments into a combined house to accommodate his family, and the place sprawled over 12,600 square feet. As many were impressed with his fame and lavish house, Harshad Mehta lent the place to the media for photography. Post his imprisonment and death, Mehta’s house was auctioned off for Rs 32.6 Crores in 2009. Mehta also owned two apartments in Juhu and every flat was spread across 1,150 square feet with a breathtaking view.
1992 Security Fraud Scam
The 1992 Indian stock market scam, orchestrated by Harshad Mehta, remains one of the most infamous financial scandals in India’s history. He obtained forged bank receipts from different banks, even including the Reserve Bank of India. These receipts worked as collateral to secure loans from other institutions. Then he used the funds acquired through these loans to exploit the stock market. He bought large quantities of shares in certain companies, driving up the prices artificially. When the prices are inflated, Harshad Mehta would sell his shares, realising significant profits. In order to avoid detection, he also had a complex network of shell companies and intermediaries to hide his transactions.
The 1992 share market scam had a profound effect on the Indian financial system, leading to a loss of confidence in the stock market. Meanwhile, several banks were adversely affected and the scam exposed the regulatory framework. Harshad Mehta was eventually caught and arrested in connection with the scam. He was charged with fraud, money laundering, and other financial crimes. Needless to say, the 1992 securities fraud scam is as a cautionary tale about the dangers of greed and the importance of maintaining ethical standards in the financial sector.
Frequently Asked Questions
1. Was Harshad Mehta richer than Ambani?
No, Harshad Mehta was not richer than Ambani. While Mehta gained a considerable fortune during the 1990s, his wealth was primarily derived from fraudulent activities and was relatively short-lived.
2. How much money Harshad Mehta took?
Harshad Mehta’s exact net worth is difficult to determine, but estimates suggest it was in the hundreds of crores of rupees.
3. What was the Sensex in 1992?
The Sensex in 1992 was impacted significantly by the Harshad Mehta scam. It had a substantial decline, falling from around 4500 to 2500, representing a loss of over Rs. 1000 billion in market capitalization.
4. What is Atur Mehta doing now?
Harshad Mehta’s son, Atur Mehta, is an investor and businessman based in Mumbai. From his recent activities, we learn that he has an interest in the textile industry as an area for investment.
5. What happened after Harshad Mehta died?
Following Harshad Mehta’s death in 2001, his family faced significant financial difficulties due to the legal proceedings and asset seizures related to his fraudulent activities.
6. What was Growmore’s share price in 1992?
The Growmore share price in 1992 was significantly inflated due to Harshad Mehta’s manipulations. The stock price experienced a dramatic rise during the scam, only to plummet sharply when the fraud was exposed.
