Harshad Mehta Biography – Harshad Mehta is a name that resonates with one of the most infamous financial scandals in India’s history. Born on July 29, 1954, Mehta’s journey from a modest background to becoming a notorious stockbroker is both fascinating and cautionary.
This article looks deep into the life of Harshad Mehta, exploring his personal and professional life, his family, net worth, and the scandal that left an indelible mark on India’s financial landscape.
Harshad Mehta Biography
Early Life and Background
Harshad Shantilal Mehta was born on July 29, 1954, in Paneli Moti, a small village in the Rajkot district of Gujarat. Growing up in a Gujarati Jain family, Mehta’s early life was humble. His father, Shantilal Mehta, was a small-time textile businessman, and his family moved to Mumbai in search of better opportunities.
Education and Early Career
Mehta completed his early education at Janta Public School in Bhilai. Although he was not particularly remarkable as a student, he showed a keen interest in cricket. After finishing school, he moved to Mumbai to pursue higher education and find work. In 1976, Mehta graduated with a Bachelor of Commerce degree from Lala Lajpatrai College.
Following his graduation, Mehta worked various odd jobs, including as a salesman, until he found his calling in the stock market. His perseverance and ambition drove him to learn the intricacies of stock trading, eventually landing him a position as a jobber on the Bombay Stock Exchange (BSE).
Rise in the Stock Market
Mehta’s journey to becoming a prominent stockbroker was marked by his innovative approach to trading. His keen understanding of the stock market and ability to manipulate stock prices earned him the nickname “Big Bull.” Mehta’s firm, GrowMore Research and Asset Management, quickly rose to prominence, attracting significant investments.
The 1992 Securities Scam
The year 1992 marked a turning point in Mehta’s career. He orchestrated a massive stock manipulation scheme that involved exploiting loopholes in the banking system. Mehta used fake bank receipts to obtain money from banks, which he then invested in the stock market, inflating stock prices artificially.
This scheme, which came to be known as the 1992 Indian securities scam, was valued at around ₹5,000 crores (equivalent to ₹30,000 crores today). The scandal not only rocked the Indian stock market but also exposed significant flaws in the banking and financial systems.
Legal Battles and Convictions
Following the scam’s exposure, Mehta faced numerous legal challenges. Of the 27 criminal charges brought against him, he was convicted of four. Despite being on trial for nine years, Mehta’s life came to an abrupt end when he died of a heart attack on December 31, 2001, while in police custody.
Personal Life
Harshad Mehta’s Family
Harshad Mehta’s personal life was relatively private. He was married to Jyoti Mehta, who stood by him throughout his tumultuous career.
Wife: Jyoti Mehta
Jyoti Mehta played a significant role in Harshad’s life. Despite the legal battles and financial turmoil, she remained supportive and resilient.
Son: Aatur Harshad Mehta
Harshad and Jyoti had one son, Aatur Harshad Mehta, who has largely stayed out of the public eye. Aatur’s life has been shaped by the legacy of his father, and he has pursued a career in business.
Brother: Ashwin Mehta
Harshad’s brother, Ashwin Mehta, was also involved in the stock market. After Harshad’s death, Ashwin pursued a law degree and successfully fought several legal battles related to the scam.
Harshad Mehta’s Net Worth
At the height of his career, Harshad Mehta’s net worth was estimated to be around $970 million. However, following the exposure of the scam, much of his wealth was seized by authorities, and his financial empire crumbled.
Impact on the Indian Financial System
The 1992 scam had far-reaching consequences on India’s financial system. It exposed significant loopholes and led to the implementation of stricter regulations by the Securities and Exchange Board of India (SEBI). These reforms aimed to prevent such scams in the future and restore investor confidence in the stock market.
Media Portrayal and Legacy
Harshad Mehta’s life and the 1992 scam have been the subject of numerous books, documentaries, and TV series. The most notable portrayal is the web series “Scam 1992,” which brought Mehta’s story to a new generation and sparked renewed interest in his life and the scandal.
Conclusion
Harshad Mehta’s story is a blend of ambition, brilliance, and greed. His rise and fall in the stock market serve as a cautionary tale about the dangers of unchecked ambition and the importance of ethical practices in finance. Despite his controversial legacy, Mehta’s impact on the Indian financial system is undeniable, and his story continues to fascinate people around the world.
FAQs
1. Who was Harshad Mehta? Harshad Mehta was an Indian stockbroker and businessman known for his involvement in the 1992 Indian securities scam.
2. What was Harshad Mehta’s net worth? At his peak, Harshad Mehta’s net worth was estimated to be around $970 million.
3. Who is Harshad Mehta’s son? Harshad Mehta’s son is Aatur Harshad Mehta.
4. When did Harshad Mehta die? Harshad Mehta died on December 31, 2001, from a heart attack.
5. What was the 1992 Indian securities scam? The 1992 Indian securities scam was a stock market manipulation scheme orchestrated by Harshad Mehta, involving fraudulent bank receipts and massive stock price inflation
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