As of white collar crime the most recent and big case we can recall is the harshad

mehta case law . It was in June 1992 that a massive income tax raid was conducted
at the numerous premises of Harshad Mehta and family. Tonnes of shares, securities,
books of account and documents were seized indiscriminately. This income tax raid
on Harshad Mehta was in tandem with the JPC enquiry, CBI investigation and that by
other agencies too, that had probed the Harshad Mehta scam. Harshad Mehta was
primarily guilty of violating capital markets and securities laws, with the active
collusion of senior bankers. It was banks that provided him with the thousands of
crores that he used to become the Big Bull of the Indian stock markets, as was
evident from the several investigations conducted. There was thus no unaccounted or
black money that was involved in his share market transactions, since it was bank
money that he misused.The Income Tax Department thereafter, in its usual manner
passed high pitched assessment orders, making a huge addition of Rs.2014 crores to
the total income of Harshad Mehta and family. Almost every receipt from banks
towards purchase of securities, where Harshad Mehta was a mere broker, was taxed in
his hands as his undisclosed and unexplained income, which it was not.
The Special Court (Trial of Offences Relating to Transactions in Securities) Act,
1992 ('the Act') is a Special Act. The offences it deals with involve amounts of
unusual magnitude procured by brokers from banks and financial institutions.
Unfortunately, the proceedings before the Special Court, which was set up for a
quick prosecution or adjudication of claims have been trapped in unusual legal and
interpretational difficulties generated by the casual drafting of the Act that
leaves much to the skills and good sense of the courts.

The Special Court has observed that it has been functioning since June 1992. In
respect of two notified parties, namely, the Harshad Mehta Group & Fairgrowth
Financial Services Ltd.,