Harshad Mehta Net Worth

Businessman




Harshad Mehta’s net worth is estimated at $1 Million – $5 Million.
Harshad Mehta was born on 29 July, 1954 in Rajkot, India, is a Businessman, Stockbroker. Find out about the life of this billionaire, including Harshad Mehta’s net worth, age, family, dating life, salary, and assets.

Popular As N/A
Occupation Businessman, Stockbroker
Age 47 years old
Zodiac Sign Leo
Born 29 July 1954
Birthday 29 July
Birthplace Rajkot, India
Date of death December 31, 2001,
Died Place Mumbai, India
Nationality Indian

What is Harshad Mehta’s net worth?

Harshad Mehta’s net worth has been growing in 2020-2021.Harshad Mehta is 47 years old and has a net worth of $1 Million – $5 Million.

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Early Life: Source Wikipedia

2013

Having figured out his scheme, Mehta needed banks which issued fake BRs (Not backed by any government securities). “Two small and little known banks – the Bank of Karad (BOK) and the Metropolitan Co-operative Bank (MCB) – came in handy for this purpose. These banks were willing to issue BRs as and when required, for a fee,” the authors point out. Once these fake BRs were issued, they were passed on to other banks and the banks in turn gave money to Mehta, assuming that they were lending against government securities when this was not really the case. This money was used to drive up the prices of stocks in the stock market. When time came to return the money, the shares were sold for a profit and the BR was retired. The money due to the bank was returned.

This went on as long as the stock prices kept going up, and no one had a clue about Mehta’s operations. Once the scam was exposed, though, a lot of banks were left holding BRs which did not have any value – the banking system had been swindled of a whopping ₹ 40 billion (US$560 million). He knew that he would be accused if people came to know about his involvement in issuing cheques to Mehta. Subsequently, it transpired that Citibank, brokers like Pallav Sheth and Ajay Kayan, industrialists like Aditya Birla, Hemendra Kothari, a number of politicians, and the RBI Governor R.Venkitaramanan all had played a role in allowing or facilitating Mehta’s rigging of the share market.

2003

Mehta made a brief comeback as a stock market guru, giving tips on his own website as well as a weekly newspaper column. However, in September 1999, Bombay High Court convicted and sentenced him to five years rigorous imprisonment and a fine of ₹ 25,000 (US$350). On 14 January 2003, Supreme Court of India confirmed High Court’s judgement. It was a 2:1 majority judgement. While Justice B.N. Agrawal and Justice Arijit Pasayat upheld his conviction, Justice M.B. Shah voted to acquit him.

2001

Of the 27 criminal charges brought against him, he was only convicted of four, before his death at age 47 in 2001. It was alleged that Mehta engaged in a massive stock manipulation scheme financed by worthless bank receipts, which his firm brokered in “ready forward” transactions between banks. Mehta was convicted by the Bombay High Court and Supreme Court of India for his part in a financial scandal valued at ₹ 5000 Crores which took place on the Bombay Stock Exchange (BSE). The scandal exposed the loopholes in the Indian banking system, Bombay Stock Exchange (BSE) transaction system and SEBI further introduced new rules to cover those loopholes. He was tried for 9 years, until he died in late 2001.

Mehta was under Criminal custody in the Thane prison. Mehta complained of chest pain late at night and was admitted to the Thane civil Hospital. He died following a brief heart ailment, at the age of 47, on 31 December 2001. He is survived by his wife and one son. He died with many litigations still pending against him. He had altogether 28 cases registered against him. The trial of all except one, are still continuing in various courts in the country. Market watchdog, Securities and Exchange Board of India, had banned him for life from stock market-related activities.

1993

Mehta again raised a furor on 16 June 1993 when he made a public announcement that he had paid Rupees 1 Crore to the then Congress president and prime minister, Mr P.V. Narasimha Rao, as donation to the party, for getting him off the scandal case.

1992

Harshad Mehta was an Indian stockbroker, well known for his wealth and for having been charged with numerous financial crimes that took place in the 1992 securities scam.

On 23 April 1992, journalist Sucheta Dalal exposed Mehta’s illegal methods in a column in The Times of India. Mehta was dipping illegally into the banking system to finance his buying.

He was arrested and banished from the stock market with investors holding him responsible for causing a loss to various entities. Mehta and his brothers were arrested by the CBI on 9 November 1992 for allegedly misappropriating more than 2.8 million shares (2.8 million) of about 90 companies, including ACC and Hindalco, through forged share transfer forms. The total value of the shares was placed at ₹ 2.5 billion (US$35 million).

1991

In criminal indictments later brought by the authorities, it was alleged that Mehta and his associates then undertook a much broader scheme, which resulted in manipulating the rise in the Bombay Stock Exchange. The scheme was financed by supposedly collateralised bank receipts, which were in fact uncollateralised. The bank receipts were used in short-term bank-to-bank lending, known as “ready forward” transactions, which Mehta’s firm brokered. By the second half of 1991 Mehta had earned the nickname of the “Big Bull”, because he was said to have started the bull run in the stock market. Some of the people who worked in his firm included Ketan Parekh, who later would be involved in his own replicate scam.

Up to the early 90s, banks in India were not allowed to invest in the equity markets. However, they were expected to post profits and to retain a certain ratio (threshold) of their assets in government fixed interest bonds. Mehta cleverly squeezed capital out of the banking system to address this requirement of banks and pumped this money into the share market. He also promised the banks higher rates of interest, while asking them to transfer the money into his personal account, under the guise of buying securities for them from other banks. At that time, a bank had to go through a broker to buy securities and forward bonds from other banks. Mehta used this money temporarily in his account to buy shares, thus hiking up demand of certain shares (of good established companies like ACC, Sterlite Industries and Videocon) dramatically, selling them off, passing on a part of the proceeds to the bank and keeping the rest for himself. This resulted in stocks like ACC (which was trading in 1991 for Rs. 200/share) to nearly Rs. 9000 in just 3 months.

1990

During this period, especially in 1990–1991, the media portrayed a heightened deified image of Mehta, calling him “The Big Bull”. He was covered in a cover page article of a number of publications including the popular economic magazine Business Today, in an article titled “Raging Bull”. His flashy lifestyle of a sea facing 15,000 feet penthouse in the tony area of Worli complete with a mini golf course and swimming pool, and his fleet of cars including a Toyota Corolla, Lexus Starlet, and Toyota Sera were flashed in publications. These further exemplified his image at a time when these were rarities even for the rich people of India.

1984

In 1984, Mehta was able to become a member of the Bombay Stock Exchange as a broker and established his own firm called GrowMore Research and Asset Management, with the financial assistance of associates, when the BSE auctioned a broker’s card. He actively started to trade in 1986. By early 1990, a number of eminent people began to invest in his firm, and utilize his services. It was at this time that he began trading heavily in the shares of Associated Cement Company (ACC). The price of shares in the cement company eventually rose from Rs. 200 to nearly 9000 due to a massive spate of buying from a set of brokers including Mehta. Mehta justified this excessive trading in ACC shares by stating that the stock had been undervalued, and that the market had simply corrected when it revalued the company at a price equivalent to the cost of building a similar enterprise; the so-called “replacement cost theory” that he had put forward.

1980

Mehta tried his hand at various jobs, often related to sales, including selling hosiery, cement, and sorting diamonds. Mehta started his career as a sales person in the Bombay office of New India Assurance Company Limited (NIACL). During this time, he got interested in the stock market and after a few days, resigned and joined a brokerage firm. In the early 1980s, he moved to a lower level clerical job at the brokerage firm Harjivandas Nemidas Securities where he worked a jobber for the broker Prasann Pranjivandas Broker who he considered his “Guru”. Over a period of ten years, beginning 1980, he served in positions of increasing responsibility at a series of brokerage firms. By 1990, he had risen to a position of prominence in the Indian securities industry, with the media (including popular magazines such as Business Today) touting him as “The sunny deol of the Stock market”.

1954

Harshad Shantilal Mehta was born on 29 July 1954, at Paneli Moti, Rajkot district, in a Gujarati Jain family.His early childhood was spent in Kandivali, Bombay (present-day Mumbai), where his father was a small-time businessman. Later, the family moved to Raipur’s Modhapara, Madhya Pradesh (Capital City of Chhattisgarh) where Mehta studied in Holy Cross Byron Bazaar Higher Secondary School. A cricket enthusiast, Mehta did not show any special promise in school and came to Bombay after his schooling for studies and to find work. Mehta completed his B.Com in 1976 from Lajpatrai college Bombay and worked a number of odd jobs for the next eight years.

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