Who Was Harshad Mehta?
Harshad Mehta was a well-known Indian stockbroker who rose to fame in the early 1990s for his bullish influence on the Bombay Stock Exchange (BSE). He was popularly called “The Big Bull” because of the way he drove up stock prices, especially of selected companies. He became famous—and later infamous—for pulling off one of the biggest financial scams in Indian history.
Born on July 29, 1954, in Gujarat, Harshad came from a modest middle-class family. His early life was simple, but his interest in the stock market changed everything. With strong ambition and sharp market tactics, he went from working ordinary jobs to living a luxurious lifestyle in Mumbai.
What Did Harshad Mehta Do?
Harshad Mehta became the face of a massive stock market scam in 1992, which shook India’s financial system. He manipulated stock prices using fake bank receipts to get huge amounts of money from banks. These funds were then used to buy shares in bulk, driving prices up, and selling them for big profits.
This scam was exposed by journalist Sucheta Dalal, and it revealed deep flaws in the banking and stock market systems at the time. The total scam value was said to be around ₹30,000 crore (which would be worth over ₹2.3 trillion today).
As a result, he was charged with several criminal cases. Out of 27 charges, he was convicted in 4 cases before he passed away. His actions led to important reforms in India’s financial rules and systems, especially by SEBI (Securities and Exchange Board of India).
Harshad Mehta Net Worth
At the peak of his success, Harshad Mehta’s net worth was estimated to be in the hundreds of crores. He owned luxury cars, multiple properties, and had investments across various sectors. Exact numbers are hard to confirm due to the nature of the scam, but unofficial estimates place his net worth around ₹3,500 crore in the early 90s. Adjusted for inflation, this would be much higher today.
Harshad Mehta House
One of the most talked-about signs of Harshad’s wealth was his luxurious penthouse in Worli, Mumbai. He bought nine flats in the Madhuli Housing Society and combined eight of them to create a 15,000+ sq. ft. mansion. The house included high-end features like a private pool, home theatre, golf area, and billiards room.
After his arrest and the legal cases, the flats were auctioned by the government. In 2009, the eight flats were sold for ₹32.6 crore.
Is Harshad Mehta’s Family Still Rich?
After Harshad’s death, the family faced many legal and financial battles. Over the years, they lost several assets due to court orders and government auctions. However, in 2019, the Income Tax Tribunal dropped tax claims of over ₹2,000 crore against them, which brought them some relief.
While they may not be as wealthy as they were during Harshad’s peak, it is believed that the family, especially his son, is financially stable.
Harshad Mehta Family Members & Their Net Worth
| Family Member | Name | Relation | Key Details | Estimated Net Worth |
| Harshad Mehta | Harshad Mehta | Self (Stockbroker) | Mastermind of the 1992 securities scam, known as “The Big Bull”. | ₹3,500 crore (at his peak)* |
| Jyoti Mehta | Jyoti Mehta | Wife | Took over legal battles and asset claims after Harshad’s death. | ₹5–10 crore (approx.)** |
| Atur Mehta | Atur Mehta | Son | Reportedly bought stake in a textile firm; keeps a low profile. | ₹15–25 crore (approx.)*** |
| Ashwin Mehta | Ashwin Mehta | Brother | Lawyer; fought over 600 legal cases linked to the scam after Harshad’s death. | ₹25–30 crore (approx.) |
The 1992 Securities Scam: How Harshad Mehta Pulled It Off
Harshad Mehta was at the center of one of the biggest financial frauds in India’s history. This scam not only shook the stock market but also exposed major loopholes in the country’s banking system.
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Background: How the Scam Began
In the early 1990s, Indian banks were not allowed to invest directly in the stock market. However, they were still expected to meet certain investment requirements by holding government bonds.
Harshad Mehta found a way to use this system for his own benefit. Acting as a middleman (or broker), he convinced banks to transfer money to him under the pretense of buying government securities. But instead of buying those bonds, he used the money to buy shares in the stock market.
He picked strong companies like ACC, Sterlite Industries, and Videocon, bought their shares in large quantities, and caused a sharp rise in their stock prices. For example, ACC’s share price jumped from ₹200 to ₹9,000 in just a few months!
Once the prices peaked, Mehta sold the shares for a huge profit, gave a portion back to the banks, and kept the rest for himself.
The Bank Receipt (BR) Fraud
A major part of this scam involved something called a Bank Receipt (BR). Normally, when banks did ready forward (RF) deals—short-term loans against government securities—one bank gave another a BR as a promise to deliver securities.
But Mehta found banks that were willing to issue fake BRs—documents that weren’t backed by any real securities. These fake BRs were passed around between banks, who believed they were backed by real bonds and gave Mehta large sums of money.
In reality, these banks were giving unsecured loans to Mehta without knowing it. He used this money to keep pushing stock prices higher, making huge profits until the system collapsed.
Scam Exposed by Sucheta Dalal
On April 23, 1992, journalist Sucheta Dalal wrote an article in The Times of India revealing how Mehta was misusing banking funds to buy stocks. This broke the entire scam open to the public.
At the time, brokers weren’t supposed to directly handle money or securities in a deal between two banks. But Mehta managed everything—cash, shares, BRs—all by himself, creating a fake system that looked legitimate.
Once exposed, banks realized they had been tricked into holding worthless BRs, and the stock market crashed. The total estimated loss to the banking system was over ₹4,000 crore, which is equivalent to around ₹31,000 crore (US$3.6 billion) today.
Aftermath: Market Crash and Legal Action
When Harshad Mehta began selling off the shares to return the money, the market crashed, causing massive losses to investors and banks. Many banks were left with bad debts and no way to recover the money. The scam led to major investigations and legal trials.
It was later found that several high-profile names in business and politics had links to the scam, including brokers, industrialists, politicians, and even officials from the Reserve Bank of India.
How the Scam Changed India
After the scam, India’s financial system underwent major reforms:
- SEBI (Securities and Exchange Board of India) got more power to regulate the market.
- New rules were introduced to prevent such misuse of bank funds.
- The role of brokers was strictly monitored.
The 1992 scam became a turning point in Indian financial history, showing the need for stronger transparency and accountability.
Pop Culture Depictions and Legacy
- Web Series: Scam 1992: The Harshad Mehta Story on SonyLIV became a national hit.
- Books: The Scam: Who Won, Who Lost, Who Got Away by Sucheta Dalal and Debashis Basu.
- Public Memory: Mixed—some see him as a hero, others as a fraud.
FAQs About Harshad Mehta & Related Queries
1. What is the net worth of Rajesh Mehta?
Rajesh Mehta, chairman of Rajesh Exports, had an estimated net worth of $2.6 billion as of 2017.
2. What is Harshad Mehta’s son doing now?
Atur Mehta is a private businessman and investor based in Mumbai, keeping a low public profile.
3. What was the price of Harshad Mehta’s car?
Harshad Mehta owned a Contessa worth ₹5.90 lakh and a Fiat Padmini, both considered luxury cars at the time.
4. Who is the CEO of Mehta Group?
Prashant Mehta currently serves as the CEO of the Mehta Group of Companies.
5. How many children did Harshad Mehta have?
He had one son, Atur Mehta, who follows a quiet entrepreneurial life.
6. Was Harshad Mehta proven guilty?
Yes, he was convicted in 4 out of 27 charges before his death in 2001.
7. What is the legacy of Harshad Mehta?
Harshad Mehta’s legacy is a mix of financial genius and controversy, remembered for changing India’s stock market forever.
Conclusion
Harshad Mehta’s life is a tale of ambition, brilliance, and downfall. From humble beginnings, he rose to become a stock market icon, only to fall from grace due to unethical practices. His story serves as a cautionary tale about the perils of unchecked ambition and the importance of robust regulatory frameworks in financial systems. While opinions about him remain divided, his impact on India’s financial landscape is undeniable.
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