Harshad Mehta, also known as the “Big Bull” of the stock market, is a name that resonates with controversy and intrigue. His rise to prominence, followed by a major financial scandal, has left an indelible mark on Indian history. Known for his extravagant lifestyle, Mehta’s life was marked by success and downfall, making him a legendary figure in the world of Indian finance.

Harshad Mehta: The Rise of a Stock Market King

Born on July 29, 1954, in Rajkot, Gujarat, Harshad Shantilal Mehta’s early life didn’t indicate the grand success he would later achieve. He spent most of his life in Mumbai, where he completed his schooling at Janta Public School and later graduated in commerce from Lala Lajpatrai College. However, his journey into the stock market didn’t begin with an easy entry.

Mehta held various jobs before venturing into the stock market world. He started by working in diamond sorting, selling cement, and a few other ventures. Eventually, he made his way into the stock market as a jobber—a middle-level broker dealing in stocks.

The Creation of the “Grow More” Firm

In the 1980s, Harshad Mehta and his brother Ashwin Mehta founded Grow More Research and Asset Management. The firm quickly rose to success, making it the highest advanced taxpayer firm in India. Their success was driven by their aggressive investment strategies and the management of client funds, which brought them substantial returns.

By the late 1980s, Harshad Mehta had become a household name in the Indian stock market. He was often referred to as the “Big Bull” due to his ability to manipulate and control stocks, creating a frenzy in the market. His methods of investing and leveraging money, however, were about to come under scrutiny.

The Scam That Shook the Nation

The year 1992 witnessed one of the biggest financial scams in India’s history, and Harshad Mehta was at the center of it. Mehta was found to be exploiting a loophole in the banking system to manipulate stock prices. He used the money from banks in the form of “PR receipts” to buy stocks, which ultimately led to the 1992 securities scam.

In simple terms, Harshad Mehta exploited the practice of transferring funds between banks using PR receipts, which were intended to be used as temporary collateral. He used this money to buy large quantities of stocks, inflating their prices and creating a market bubble. When the banks needed the PR receipts back, he used more PR receipts from other banks, continuing the cycle.

Harshad Mehta’s Family Tree

This system allowed Mehta to generate a huge amount of money—close to 1 billion rupees—which was later discovered to be part of the scam. The result was one of the biggest stock market crashes in Indian history, causing significant losses to investors and shaking the foundation of the Indian financial system.

While the financial world may remember Harshad Mehta for his scams, his family’s support and resilience in the face of scandal have been integral to his story.

Harshad Mehta’s father, Shantilal Mehta, was a respectable figure, while his mother, Rasilaben Mehta, was known for her deep-rooted family values. Harshad married Jyoti Mehta, with whom he had a son, Atur Mehta. Harshad had three brothers—Ashwin Mehta, Sudhir Mehta, and Hitesh Mehta.

The Aftermath of the Scam

After Harshad Mehta’s fraudulent activities were discovered, a series of legal battles ensued. Mehta was arrested in 1992, and his involvement in the scam led to multiple criminal cases. Despite being jailed for several years, Harshad’s reputation never fully recovered. His time in prison ended in 2001 when he died of a heart attack while still facing numerous charges.

Despite the controversies, his family—especially his brother Ashwin Mehta—fought hard to clear his name. Ashwin, who became Harshad’s legal advocate, fought tirelessly against the accusations and paid off a large part of Harshad’s debts. In fact, Ashwin Mehta paid an astonishing 1700 crores to clear his family’s liabilities. Hoping to move beyond the stigma associated with Harshad’s name.

The Legacy of Harshad Mehta

Though Harshad Mehta’s actions led to one of India’s most infamous financial scams. His life also left behind a legacy that many financial professionals still reflect upon. Harshad was a pioneer in the stock market in his time. And his methods brought attention to the regulatory flaws that existed within the system.

However, his story is a cautionary tale of unchecked ambition, manipulation, and greed. It serves as a reminder that systems need continuous checks and balances. And without proper regulations, even the most established financial systems can be exploited.

Harshad Mehta’s Family Today

After Harshad Mehta’s death, his family faced immense public scrutiny. However, they have slowly rebuilt their lives. Jyoti Mehta, his wife, now lives in the United States with their son Atur Mehta. Meanwhile, Ashwin Mehta, his brother, continues to practice law. In India and is known for his contributions to the legal field.

Ashwin has done his part to clear his family’s name, and his efforts have led to the dropping of all cases against Harshad Mehta. His success as a lawyer has also helped restore the family’s dignity after the long ordeal.

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Conclusion

The story of Harshad Mehta is one of triumph, betrayal, and loss. While his role in the 1992 securities scam left a dark stain on the Indian stock market. His rise to prominence is a reminder of how the financial world can be manipulated. The subsequent crash in the market served as a wake-up call for regulatory authorities. Leading to reforms in the financial sector.

For Harshad Mehta’s family, the journey has been one of resilience. Despite the challenges, they have managed to rebuild their lives, with Ashwin Mehta continuing to fight for his brother’s legacy.

Harshad Mehta’s life is a fascinating example of ambition, risk-taking, and the consequences of unchecked power. While his actions continue to be debated, his story remains an important chapter in the history of India’s financial sector.