Aatur Harshad Mehta, often known as the Big Bull of India, was a prominent stockbroker and investor who dominated the Indian stock market in the late 1980s and early 1990s. Born on 29th October 1954 in Paneli Moti, Rajkot, Mehta’s rise to fame and subsequent fall from grace is a saga that has left an indelible mark on the Indian financial landscape.
Early Life and Career:
Mehta began his career in the early 1980s working as a salesperson for the brokerage firm New India Assurance Company. He quickly rose through the ranks and established his own firm in 1990 called Growmore Research and Asset Management. Mehta’s savvy investment strategies and keen understanding of the stock market catapulted him to great heights, earning him the moniker of “Amitabh Bachchan of the Stock Market.”
The Bull Run:
Mehta’s meteoric rise to fame came during the period between 1990 and 1992 when he orchestrated a bull run in the Indian stock market. His modus operandi involved exploiting systemic loopholes in the banking system to manipulate stock prices. He employed a strategy known as “Pump and Dump,” wherein he would artificially inflate the prices of certain stocks through large-scale buying, only to sell them at a profit once the prices peaked.
The Scam:
Mehta’s empire came crashing down in 1992 when his illicit activities were exposed, leading to what is now famously known as the Harshad Mehta Scam or the Securities Scam of 1992. The scam involved Mehta fraudulently obtaining funds from banks using false securities and manipulating the stock prices of various companies. The fallout from the scam sent shockwaves through the Indian economy, leading to a significant downturn in the stock market and wreaking havoc on the financial sector.
Legal Battles and Legacy:
Mehta’s legal troubles mounted in the aftermath of the scam, leading to multiple court cases and investigations. He was eventually charged with numerous offenses, including criminal conspiracy, cheating, and falsification of accounts. Despite his legal battles, Mehta remained a polarizing figure, with some viewing him as a financial genius while others condemned him as a fraudster.
Death and Aftermath:
Harshad Mehta’s tumultuous journey came to a tragic end on 31st December 2001 when he succumbed to a heart attack at the age of 47. His death marked the end of an era in the Indian financial markets, but his legacy continued to reverberate for years to come. Mehta’s story has inspired books, movies, and documentaries, immortalizing him as a flawed prodigy whose actions forever changed the course of Indian finance.
Conclusion:
Aatur Harshad Mehta’s life serves as a cautionary tale about the perils of unchecked ambition and the consequences of financial malpractice. His saga remains a poignant reminder of the impact that individuals, for better or for worse, can have on the intricate web of global finance. Mehta’s legacy endures as a complex tapestry of brilliance and infamy, a testament to the enduring allure and dangers of the stock market.