Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Harshad Mehta: The Rise and Fall of India’s Big Bull

Harshad Mehta
Image Source: Social Media Account
Share this page

Table of Contents

Personal Details

AttributeDetails
Full NameHarshad Shantilal Mehta
Known AsThe Big Bull, The Amitabh Bachchan of Stock Market
Date of BirthJuly 29, 1954
Date of DeathDecember 31, 2001
Age at Death47 Years
BirthplacePaneli Moti, Rajkot District, Gujarat
Place of DeathThane Civil Hospital, Mumbai
EducationB.Com from Lala Lajpat Rai College (1976)
ProfessionStockbroker

Family Information

RelationDetails
FatherShantilal Mehta (Businessman)
MotherRasilaben Mehta
WifeJyoti Mehta
ChildrenSon – Atur Mehta

Early Life and Background

Born into a Gujarati family on July 29, 1954, Harshad Mehta spent his early childhood in Mumbai’s Kandivali, where his father ran a small textile business. The family later relocated to Raipur, Chhattisgarh, due to his father’s health issues, where Harshad completed his schooling at Holy Cross High School.

During 1964-1973, the family faced severe financial hardships after Shantilal Mehta experienced multiple business setbacks. Despite these challenges, his parents prioritized their children’s education, even selling family jewelry to meet expenses.

Educational Journey and Early Career

In 1973, Harshad moved to Mumbai for better prospects, living with his uncle and aunt. He enrolled in Lala Lajpatrai College of Commerce, gaining admission through his cricket credentials as a left-arm spinner. During his college years, he worked various jobs, including:

  • Cement supplier
  • Diamond polisher
  • Hosiery store worker
  • Insurance clerk

Professional Journey

Insurance Career and Stock Market Entry

Harshad joined New India Assurance Company Limited in their Hull department. His interest in the stock market developed during lunch breaks at the Bombay Stock Exchange (BSE). He managed to enter the restricted trading hall and secured a trading badge from broker P. Ambalal.

Rise in Stock Market

In 1978, he resigned from his insurance job to pursue a full-time career in BSE as a market maker. His success in this role laid the foundation for his future in the money market. By 1982, he established Growmore Investments with his brother Ashwin, starting from a small 50-square-feet gallery in Bharat Bhavan, Kalbadevi.

The Scam Era (1991-1992)

Modus Operandi

Harshad exploited several systemic loopholes:

  • Used Ready Forward (RF) deals
  • Created fictitious bank receipts
  • Manipulated stock prices
  • Obtained illegal bank funding
  • Artificially inflated share values

Notable manipulations included:

  • ACC shares rising from ₹200 to ₹9,000
  • Total scam value estimated at ₹5,000 crores
  • Involvement of multiple banks and financial institutions

Downfall and Legal Battles

Exposure and Arrest

The scam was exposed by journalist Sucheta Dalal in April 1992 through an article in The Times of India. This led to:

  • Market crash
  • Multiple investigations
  • CBI involvement
  • Formation of Special Court
  • Attachment of assets

Legal Consequences

Harshad and his family faced:

  • 76 criminal cases
  • Over 600 civil suits
  • Income tax penalties
  • Asset attachment
  • Multiple arrests

Legacy and Impact

System Reforms

The scam led to significant changes in Indian financial systems:

  • Establishment of SEBI as market regulator
  • Creation of National Stock Exchange
  • Stricter banking regulations
  • Reformed trading systems
  • Enhanced market surveillance

Cultural Impact

Harshad Mehta’s story has been portrayed in:

  • Books
  • Web series
  • Documentaries
  • Case studies
  • Academic literature

Personal Life

Despite his controversial professional life, Harshad maintained strong family ties. He met his wife Jyoti during Navratri celebrations and married her in 1977. Their son Atur was born later, completing their family unit.

Final Years

Harshad spent his final years fighting legal battles while maintaining his innocence. He died on December 31, 2001, at Thane Civil Hospital due to heart ailment, leaving behind a complex legacy that continues to influence Indian financial markets and regulations.

The Harshad Mehta story remains a cautionary tale about the dangers of unchecked ambition and systemic vulnerabilities in financial markets, while also serving as a catalyst for crucial reforms in India’s financial sector.

Leave a Reply

Your email address will not be published. Required fields are marked *