Did He Really Do 1992 Scam ? || Story of Harshad Mehta

Introduction

Harshad Shantilal Mehta  big bull and also know as  amitabh bachchan of indian stock market ,In 90’s he used to earn more than bollywood stars , he used to own luxury cars and not to forget he was one of the highest tax payer in india 

But within 2 years his fate has completely changed by losing all his wealth and ended up in prison cell 

But question pops in everyone’s mind is , 

How a common man earned so many crores in short time ?

Why police arrested him ?

Did he really do scam ?

For next 2 minutes im going to tell you interesting facts about harshad mehta who is the master mind of 1992 scam , stay tuned and read full article

• Lets begin our video from 1954 where harshad metha is born in village of Paneli Moti from the state of gujarat 

• After few years his family shifted to mumbai and it was in year 1976 when he completed his B.COM and later for almost 4 years  he  worked as salesman in jewellery shops ,clothing stores and insurance companies 

• But the salary which he used to earn from job was not fulfilling his family needs and he decides to do something big , 

• harshad mehta had a habit of reading business books where he used to read how to become rich  and also he used to read daily newspaper in which he learnt how to invest money in share market and earn profits 

• With his knowledge and interest  in share market , he decides to quit his present job and started working in stock market company where he learnt lot and started advising his friends who used to earn lot from his ideas 

• While working for company he started buying small stocks  and used to earn more than his salary , and it was in year 1984 where he resigned his job and started his own stock brokerage company  on the name of growmore consultancy 

• As time passes he was making more and more money and become one of the richest person having big bungalow and luxury cars , everything was well and good until he wanted to earn even more buy using stock market loopholes 

• He started buying low price stocks for 1Rs  per share and next day he started selling same shares to his partner for 2Rs , where people used to think that low price share are increasing its value and started buying it for 4Rs and later he used to buy same stocks for 5 Rs and later he started selling it for 10Rs 

• This is how harshad mehta started making more money in  stock market , but at some time he wanted to control whole stock market for which he need more money where he can get only from banks 

• But problem was banks ask surety before giving loan which harshad mehta dint have So he started using another loophole but this time in banking system 

• To explain banking loop hole we will take small example considering 4 different banks (bank 1 , bank 2 , bank 3, bank 4)

• Each and every bank takes money from other banks  with some interest (4%) by keeping some bonds as surety  

• Harshad metha started consulting these banks and asked them that he will act as broker in between banks and  later he started taking money from bank 1 in check on his name and giving to bank 2 after the processing time of 15-20 days by keeping bonds of bank 2 with him  as surety and he used to give bank receipt to bank 1 as surety 

• So in 15-20 days of processing time , he used to invest that money in low risk stock and used to make profit from that and after 20 days he used to return principle amount to bank 2 by keeping profit with him 

• And when bank 1 asks money he used to ask money from bank 3 and give it to bank 1 and this continued  

• Even to explain in simple word , Taking 100Rs from  manju and using it and when manju wanted money , he used to ask 100Rs to sanju and return to manju 

• with this loophole  he become so rich that he become one of the highest tax payer  at the time in india 

• But there where people who were jealous of his growth and started pulling him down with the support of politician by blocking his  bank transactions , 

• And journalist named Sucheta Dalal , where she exposed  him by writing articles in newspaper , where people started selling shares and within one day whole share market crashed , which put  harshad mehta and many stock market investors in risk  

• It was 23 April 1992 ,where cbi started enquiry on banks and  find out loopholes which was used  by harshad mehta  and took him in custody 

• His stock market  competitors wanted to pull down harshad mehta so badly that , more than 76 criminal cases and 600 civil cases were filed against him  

• He used to come out in bail and next day again police used to arrest him with another case,This continued till 2001 , where he suffered chest pain  in thane central jail at 11 pm 

• Immediately police took him to hospital ,but it was too late where he was declared dead on dec 31 2001 ,

• The security fraud was so big that , he manipulated more than 5000 crores which is valued 25000 crores in present day and it is said that his family paid 3000 crores and still they are in process of paying debts 

• On this story recently  web series named  scam-1992  was released  where u can watch in sony liv,

Thats the end of short and simplified story of harshad mehta 1992 scam 

Kindly watch 3 minute Video to Know More about  Scam 1992