Final Up to date on Could 30, 2025 by vanessa sequeira
The greed for cash led to the 1992 inventory market rip-off, one of many greatest Indian inventory market scandals, when Harshad Mehta, often known as the Large Bull of Dalal Road, deceived the complete nation of Rs 4,000 cr. Listed below are 10 information about him.
This text covers:
Truth No. 1: Got here To Mumbai Grime Poor
Harshad Mehta’s household was a lower-middle-class and so they lived in Paneli Moti, Rajkot. He got here to Mumbai looking for a dwelling. On the time, the Large Bull of Dalal road had solely Rs 40 in his pockets. To outlive within the metropolis of desires, he took meagre jobs for the following 8 yrs.
Truth No. 2: Turned The “Large B” Of The Inventory Market
By the Nineteen Nineties, Harshad Mehta had risen to such prominence within the share market along with his relentless onerous work and unwavering will, that he earned the title ‘Amitabh Bachchan of the inventory market’.
Truth No. 3: The Most Treasured Man Of The Revenue Tax Division
In 1992, Harshad Mehta’s internet price was so excessive that he even paid the best earnings tax of Rs 24 cr, only a few weeks earlier than the rip-off was uncovered. Actually, some mentioned that if he was alive and never caught, Harshad Mehta would have been richer than Mr Mukesh Ambani.
Truth No. 4: Lived Life King Measurement
Harshad Mehta’s life-style drastically modified from his humble origins. He owned a 12,000 sq. ft. lavish penthouse in Worli and a fleet of uncommon, luxurious automobiles just like the Lexus Starlet and Toyota Corolla. Many individuals solely dreamt of proudly owning these within the Nineteen Nineties.
Truth No. 5: Orchestrated India’s Largest Rip-off Ever
Between April 1991 and 1992, Harshad Mehta’s rip-off concerned him manipulating Sensex in a approach that it surged from simply over 1,000 factors to nearly 4,500 factors. This resulted in an enormous rip-off of Rs 4,000 cr, which made it the most important in India that was deliberate simply by a single particular person. When adjusted for inflation, the rip-off would quantity to Rs 24,000 cr.
Truth No. 6: Received A Staggering Surge In Market Worth
Within the Harshad Mehta 1992 rip-off, Rs 3,500 cr of funds from the banks have been diverted to a bunch of stockbrokers, led by Harshad Mehta. These funds have been then put into selective shares, inflicting them to surge over a staggering 4,500 per cent.
Truth No. 7: The Largest Inventory Market Rip-off Uncovered
Journalist Sucheta Dalal uncovered Harshad Mehta as a fraud, on twenty third Apr 1992 within the columns of the Occasions of India. Based mostly on the rip-off, she co-wrote a guide titled “The Rip-off: Who Gained, Who Misplaced, Who Received Away” with Debashish Basu.
Truth No. 8: Poor Banking System
Because of Harshad Mehta’s arrest, loopholes within the Indian banking system and the Bombay Inventory Change (BSE) transaction system have been uncovered. Watchdog SEBI additional launched new guidelines to deal with the loopholes. Harshad Mehta’s trial went on for 9 years till he handed away in late 2001 attributable to a cardiac arrest in Tihar jail.
Truth No. 9: Allegation In opposition to Prime Minister
On sixteenth Jun 1993, when Mehta was out on bail, he publicly claimed that he had bribed the then Congress President and Prime Minister Mr P. V. Narasimha Rao of Rs 1 cr for getting Mehta out of the scandal case.
Truth No. 10: Case Magnitude
The CBI charged Mehta with 72 legal circumstances, which included bribery, dishonest, forgery, legal conspiracy and falsification of accounts. He was additionally charged with over 600 civil motion fits by banks and establishments relating to the cash he owed them. Mehta had fooled 4 banks of an quantity of Rs 1,700 cr.
