Personal Details
Attribute | Details |
---|---|
Full Name | Harshad Shantilal Mehta |
Known As | The Big Bull, The Amitabh Bachchan of Stock Market |
Date of Birth | July 29, 1954 |
Date of Death | December 31, 2001 |
Age at Death | 47 Years |
Birthplace | Paneli Moti, Rajkot District, Gujarat |
Place of Death | Thane Civil Hospital, Mumbai |
Education | B.Com from Lala Lajpat Rai College (1976) |
Profession | Stockbroker |
Family Information
Relation | Details |
---|---|
Father | Shantilal Mehta (Businessman) |
Mother | Rasilaben Mehta |
Wife | Jyoti Mehta |
Children | Son – 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.