HARSHAD MEHTA SACM

Harshad Mehta was an Indian stockbroker, known for his wealth and several financial crimes
that took place in 1992. Mehta was convicted by the Bombay High Court and Supreme Court
of India for his part in financial scandal valued 4999 Crores which took place on Bombay
Stock Exchange. He was tried for 9 years, until he died in late 2001 aged 47.

 Early life

Harshad Shantilal Mehta was born on 29th July, 1954 to a Gujarati family in Rajkot district.
His early childhood was spent in Kandivali, Mumbai. Mehta completed his B.Com in 1976
from Lajpatrai college, Mumbai and worked a number of odds jobs for the next 8 years.

 Career and Subsequent Scams

Mehta started his career as a sales person in the Mumbai office of New India Assurance
Company Limited(NIACL). During this time only, he got interested in the share market and
later joined a brokerage firm. He worked as a jobber for the broker Prasann Pranjivandas,
Broker who he considered his “GURU”. By 1990, he had risen to a position of prominence in
the Indian securities industry, with the media titling him as “The Amitabh Bachchan of Stock
Market”.

 GrowMore Research and Management

In 1984, Mehta was able to become a member of the Bombay Stock Exchange as a broker
and established his own firm called GrowMore Research and Asset Management. By early
1990, a number of eminent people began to invest in his firm, and utilize his service
including the then Finance Minister P.Chidambaram through Chidambaram’s own shell
companies. It was at this time that he began trading heavily in the shares of Associated
Cement Company(ACC). The price of shares in the cement company eventually rose from
Rs.200 to nearly 9000. During this period of, the media portrayed the defied image of Mehta,
calling him “The Big Bull”.

 The 1992 Scam

The scam in printing and selling of stamp papers, which is used for recording documents for
registration purpose. This scam is of about Rs.2200 crores and involves fraudulent printing
and sale of stamp papers. Mehta cleverly squeezed capital out of banking systems and
invested this money in share market by promising the banks for higher rate interests.

 Exposure Trial and Conviction

When the scheme was exposed, banks started demanding their money back, causing the
collapse. He was later charged with 72 criminal offences. He was arrested by the CBI on 9th
November, 1992 and was banned from stock market for misappropriating more than 2.8
million shares of about 90 companies valued Rs.2.5 billion. In September 1999, Bombay
High Court convicted and sentenced him to five years imprisonment and a fine of Rs.25,000.

 Death
Mehta was under criminal custody in Thane prison where one night he complained of chest
pain and was admitted to the Thane civil hospital. He died following a brief heart ailment at
the age of 47, on 31st December, 2001. He died with many litigations still pending against
him.

A 2011 WIKILEAKS DOCUMENT REVEALED THAT HARSHAD MEHTA HAD FUNDS OF

Rs.135,800 CRORES IN THIRTEEN SUB ACCOUNTS OF SWISS BANK.....