Harshad Mehta Scam took place in 1992 and 16 years after that the caretaker sold eight apartments known as Harshad Mehta house. This Harshad Mehta property is situated in a complex called Madhuli, which his family occupied in the upscale Worli.
Under the special law, the custodian appointed will be dealing with cases related to the 1992 fraud case. And it was carried out last on February 4. The Harshad Mehta family owns nine apartments which were situated in the Madhuli Housing Cooperative.
Who Lived In Harshad Mehta’s House?
Harshad Mehta lived with his family that includes four siblings, their better halves, children, and his mother. There were total of nine apartments that were redesigned and merged to settle down his entire family. The property in Madhuli is one of Harshad Mehta’s most valuable assets. It was later known as Big Bull that comprised of billiard room, mini-golf course, and mini-theater.
About The 1992 Scam
There were some violations in the securities transactions of the banks and financial companies that were detected in the year 1992’s second quarter. It included financial firms, foreign banks, public/private sector companies, major stock exchanges, brokers, and senior staff.
There were many stockbrokers who wanted to borrow money to get to the market. But there were strict regulations imposed by the Reserve Bank of India. It restricted them from lending from banks, which were the cheapest sources of finance. Brokers have found option for solutions based on government securities, conspiracy with banks, avoiding the rules of the Reserve Bank of India, managing the bank funds, and transferring them to the stock market.
PSU’s were supporting the brokers and banks and looking forward for various ways to allocate their temporary surplus. In breach of this rule, the PSU under the PMS shame by banks, they began taking positions in the securities market. That wall of money promoted the large-scale stock speculation between April 1991 and May 1992, which almost tripled BSE Sensex.
What is The Condition Of Harshad Mehta’s Family?
When Harshad Mehta took his last breathe in the year 2001 under the police custody, his family had to suffer in a series of court battles. After 27 years, the Income Tax tribunal scraped almost the entire tax demand which was around of Rs. 2.014 crores on late Harshad Mehta on Ashwin (his brother) and wife Jyoti in February 2019.
In the same year 2001 when Harshad Mehta death took place, Jyoti also won a lawsuit against the federal bank and stockbroker Kishore Janani. And then she was entitled to receive the total amount with an interest amount of 18%.
Harshad’s brother had several cases fought on his own and paid the bank about Rs. 17 billion rupees to get free his brother’s name from all charges. The case that was against Harshad got lifted in a short time period after his death in 2001. But still his brother Ashwin continued the judicial battle until 2018.
Sonyliv “Scam 1992” Series
The year 2018 and in the month of February, Sameer Nair, CEO of Applause Entertainment, which is a content studio from the Aditya Birla Group, announced a web series. This series will have in total of 10 episodes-Scam 1992. The series will be based on the famous 1992 Indian stock market scam and focusing on the life of Harshad Mehta. To your knowledge, it is an adaptation of the book “The Scam: Who Won, Who Lost, Who Got Away” by Sucheta Dalal and Debashish Basu.
Some of the important learning that comes from series such as
- “Don’t be scared to take the risks in life”
- “Having Confidence is a must to succeed”
- “There is nothing to worry about if you fail in the beginning!”
Also, one should be careful and look for consequences in advance if something wrong happens. One is always good at learning, but it is good practice to be well-prepared in advance for risk management and understand the pitfalls. Harshad Mehta series is a must watch web series based on real life incident to learn about how it ended for his family. Moreover, Mr. Ashok Samani who is a reputable businessman and a stockbroker bought the famous Harshad Mehta house for a whooping amount of Rs.32.6 crores.
Read also: Godrej SKY Greens