Mar 5, 2025
Harshad Mehta is a name that still sparks both awe and debate. Born in 1954 into a humble Gujarati family, he went on to become one of the most talked-about figures on Dalal Street. Known as the "Big Bull," his life was a wild mix of bold moves and big risks.
Here’s why his story still grabs our attention:
Rags to Riches: Harshad started life with very little but dreamed big.
A Changing Nation: He rose during a time when India was opening up its economy, full of new opportunities—and loopholes.
High Risks: He wasn’t afraid to push boundaries, even if that meant bending the rules.
Lasting Impact: His actions led to major changes in how India handles its financial markets, even if his methods were controversial.
Early Life & Background
To truly understand Harshad Mehta, it helps to know where he came from. His early years set the stage for his later adventures in the stock market.
Family and Early Challenges:
Humble Beginnings:
Born on July 29, 1954, in Paneli Moti, Gujarat, Harshad grew up in a modest Gujarati Jain family.
His father, Shantilal Mehta, ran a small textile business, but the family faced financial hardships early on.
In 1964, a move to Raipur—due to his father’s health problems—led to a big loss of wealth.
Family Values:
Despite their struggles, his parents made sure he and his brothers got a good education.
The tough times taught him the value of hard work and resilience.
Schooling and Education:
Early School Years:
Harshad started his education in Ghatkopar and then went to Rose Manor Garden School in Santacruz, Mumbai.
The family’s move to Raipur meant he had to adjust to new surroundings and schools like Holy Cross High School.
Further Studies:
Later, he continued at Janta Public School in Bhilai.
In 1976, he earned his B.Com from Lala Lajpatrai College in Bombay.
A fun fact: his cricket skills (he was a left-arm spinner and right-handed batsman) even helped him secure a spot in college!
Early Career and Entry into Finance
Taking on Odd Jobs:
Before he found his calling in the stock market, Harshad worked in various jobs—selling cement, working in a hosiery store, and even sorting diamonds in Surat.
These jobs weren’t glamorous but taught him how to hustle and negotiate.
First Steps in Finance:
His interest in money and risk grew when he worked at New India Assurance Company Limited.
Soon, he decided to leave that job and join a brokerage firm, starting as a “jobber” at Harjivandas Nemidas Securities.
He learned a lot under the guidance of his mentor, Prasann Pranjivandas, who helped him understand the basics of trading(next section is all about this).
Personal life and early influences:
A New Start in Bombay:
In 1973, seeking better opportunities, Harshad moved back to Bombay and lived with his uncle and aunt.
A Spark of Romance:
It was during this time he met Jyoti Doshi during the festive Navratri celebrations—a moment that would later play a key part in his life.
Building Resilience:
The challenges he faced—financial struggles, moving cities, and juggling odd jobs—instilled in him a burning desire to succeed and take risks, traits that would define his later career.
This early journey, full of small wins and tough lessons, laid the groundwork for the bold, high-stakes moves Harshad Mehta would later make on Dalal Street.
It’s a story of determination, resourcefulness, and the kind of risk-taking that can either lead to great success or a dramatic downfall.
Harshad Mehta Entering the Stock Market
Harshad Mehta’s real break came when he joined New India Assurance Company. Boring desk job? Not for Harshad. His eyes were glued to the stock market tickers, not insurance policies.
Then came Prasann Pranjivandas, a veteran stockbroker who became Harshad’s “guru.”
Picture this: Harshad, the eager learner, working as a jobber (a middleman who quotes prices for stocks) on Dalal Street. Back then, jobbers were like human calculators, screaming buy-sell prices in crowded trading pits.
Harshad soaked it all up—market trends, investor psychology, the art of speculation.
By 1986, he was ready to bet on himself. He founded Growmore Research & Asset Management. Harshad wasn’t just another broker. He took wild risks, spotted undervalued stocks like a hawk, and turned tiny investments into gold.
People called him the “Amitabh Bachchan of the Stock Market”—charismatic, larger-than-life, and impossible to ignore.
His genius wasn’t just in numbers. He got people. Retail investors trusted him because he spoke their language.
Banks?
They saw him as the guy who could make magic happen. By the late 80s, Harshad wasn’t just in the market—he was the market.
The 80s Boom: Harshad Mehta’s Rise to Power
The 1980s were India’s economic glow-up. Liberalization was knocking, and Harshad Mehta? He kicked the door open. Starting with peanuts, he built an empire.
How?
Two words: Big Bull.
He earned that nickname by charging into the market like a bull in a china shop.
Stocks? He didn’t just buy them—he drove prices up.
Take ACC. When Harshad touched it, the stock went from ₹200 to ₹9,000.
Not just ACC, Sterlite, Videocon, and more.
Crazy, right? His mantra?
Replacement Cost Theory. “If rebuilding a company costs more than its stock price, it’s a steal!”
Imagine a factory worth ₹1,000 crore trading at ₹500 crore on the market—Mehta would swoop in, buy shares, and hype the “undervalued” stock.
ACC, a cement giant, became his poster child. He argued its land, machinery, and brand were worth way more than its ₹200/share price.
So he bought massively, driving ACC to a surreal ₹9,000/share. Investors bought his logic, not realizing it was a smokescreen for manipulation.
Pump and Dump: The Art of Fake Hype
Here’s how it worked:
Pump: Borrow cash (often illegally—more on that later), buy a ton of shares.
Hype: Leak “tips” to brokers, plant bullish stories in newspapers (“ACC is the next Reliance!”).
FOMO Frenzy: Retail investors, smelling quick money, rush to buy. Prices skyrocket.
Dump: Sell his shares at peak prices, vanish, and watch the stock crash.
Stocks like Apollo Tyres, Sterlite, and Videocon saw similar rollercoasters.
Why these companies? They had solid assets (factories, land) that fit his Replacement Cost narrative. Plus, low liquidity meant even small buying sprees could swing prices.
But the real thing was trust.
Why? Because he promised returns—and delivered.
Now comes the question, Where’d he get the cash to pull this off?
Public sector banks, baby. Mehta exploited “ready forward” (RF) transactions—short-term loans where banks lend against government securities.
But here is the thing: he used fake Bank Receipts (BRs) as collateral. Think of BRs as IOUs between banks. Mehta, acting as a middleman, forged these receipts to show fake transactions.
Banks like SBI, National Housing Bank, and UCO Bank handed him ₹4,000+ crores without realizing the collateral didn’t exist.
With this “free money,” he’d buy stocks, inflate prices, repay old loans with new ones, and pocket the profit. It was a house of cards—until someone noticed the BRs were bogus.
Controlling Dalal Street
Did he control the market? Not entirely, but he sure rigged it. At his peak:
Volume King: His trades made most of the daily BSE activity.
Media Muscle: Newspapers quoted him like a prophet. A bullish quote from Mehta could send stocks soaring.
Broker Network: Growmore Research had ties to brokers who’d mirror his trades, creating artificial demand.
Small investors blindly followed his moves, while banks, blinded by returns, kept funding him. For a while, Harshad wasn’t just a player—he was the game.
The media? They loved him.
Newspapers painted him as the poster boy of India’s financial revolution.With Lexus, Mercedes, and a 15,000 sq ft Worli penthouse. You could say he was the Wolf of Dalal Street before Wolf of Wall Street was even a thing.
Yet, behind the glitz was a guy playing 4D chess. He knew banks had loopholes, media had power, and investors had FOMO (fear of missing out). By the time the 90s hit, Harshad wasn’t just rich—he controlled the game. And that’s when things got... complicated.
The 1992 Securities Scam: How It Worked
Let’s dissect the scam that rewrote India’s financial rulebook.
The Scam Engine: Fake Bank Receipts (BRs)
The scam revolved around bank receipts (BRs), a seemingly innocent document used in inter-bank transactions. Here’s how it worked:
Ready Forward (RF) Deals: Banks lent short-term money (15–90 days) to each other using government securities as collateral. Instead of physically moving bonds, they exchanged BRs as "proof" of the transaction.
The Forgery: Mehta exploited this trust. He colluded with corrupt bankers to issue fake BRs that showed non-existent government securities.
The Scale: over ₹4,000 crores (₹310 billion or $3.6 billion in 2023) were siphoned using these fake receipts.
Banks like SBI, National Housing Bank (NHB), and UCO Bank handed Mehta cash, thinking they were lending against safe government bonds. Instead, he funneled this money into stocks, creating artificial demand.
The Domino Effect: Stock Manipulation to Market Crash
Step 1: Fueling the Fire
Mehta used the stolen funds to target illiquid stocks with low trading volumes—like ACC, Sterlite, and Videocon. These were easier to manipulate.
ACC’s Meteoric Rise: From ₹200 in 1991 to ₹9,000 by April 1992—a 4,400% surge—thanks to Mehta’s bulk buying.
Collateral Damage: Sterlite jumped 200%+, Videocon 300%+. At its peak, Mehta controlled a great amount of all Bombay Stock Exchange trades.
Step 2: The House of Cards
To keep the scam alive, Mehta:
Used new BRs to repay old loans.
Created a circular trading network: Brokers linked to him bought/sold the same stocks to inflate prices.
Planted bullish stories in media to lure retail investors.
Step 3: The Collapse
On April 23, 1992, journalist Sucheta Dalal exposed the BR fraud in The Times of India. Chaos followed:
Banks froze Mehta’s accounts and demanded repayments.
Panic selling crashed the BSE Sensex from 4,500 to 2,500 in weeks—wiping out ₹1,000 billion in market value.
By 1994, stock prices had plummeted 72%, eroding savings of over 2 million investors.
Key Players & Systemic Failures
Banks:
NHB lost ₹1,199 crores—the highest among banks.
State Bank of Saurashtra lost ₹175 crores.
SBI Capital Markets Ltd - ₹121 crores.
Standard Chartered (₹300 crores) and ANZ Grindlays were implicated in forging BRs.
Corrupt Officials:
RBI Governor S. Venkitaramanan was accused of ignoring red flags.
A bank chairman committed suicide post-exposure.
Political Links:
Mehta claimed he paid ₹1 crore to Congress President and PM Narasimha Rao (allegation denied).
Finance Minister Manmohan Singh faced heat for delayed reforms.
It took more than a year to recover to its pre-crash levels after the Harshad Mehta scam. Around 43% drop.
April 1992: Sensex at 4,467, scam exposed.
August 1992: Sensex crashes to 2,529, a 43% drop.
October 1993: Sensex reaches 5,000, surpassing the previous peak.
Wait, there is more...
Jyoti Mehta’s Defense: The Other Side of the Story
Harshad’s widow, Jyoti Mehta, has fiercely contested the narrative. Here’s her perspective:
Legality of Transactions:
Harshad operated under BSE’s Rules & Bye-laws, which allowed brokers to act as principals. Banks knew he wasn’t a traditional “broker” but a counterparty.
RBI’s Private Circulars (e.g., July 1991) permitted banks to route payments through brokers. Jyoti argues CBI ignored this, framing legal acts as crimes.
No Bank Losses:
Banks like SBI recovered ₹616 crores from Harshad before the scandal broke. SBI even admitted “no outstandings” post-repayment.
Special Court Orders (e.g., 2013) ruled that non-delivery of securities wasn’t criminal—it was a civil dispute.
Sucheta Dalal’s Role:
Jyoti claims Dalal’s article was based on gossip, not evidence. SBI denied her story, yet she ran it to trigger panic.
The market crash, she argues, was caused by Dalal’s “false hysteria,” not Harshad’s actions.
Long-Term Gains:
Stocks Harshad bought (like ACC) surged 8,000%+ over decades. Investors who held made fortunes.
The 1992 crash hurt only those who panic-sold—a fallout of media frenzy, not fraud.
The Aftermath
India’s Finance Infra rebuild.
ReformImpactSEBI’s Power BoostGranted authority to regulate brokers, penalize fraud, and protect investors.National Stock Exchange (NSE)Launched in 1994 with electronic trading to replace BSE’s opaque “open outcry” system.Dematerialization (Demat)Physical share certificates replaced with digital holdings to prevent forgery.Banking RegulationsRBI banned banks from equity investments and tightened BR audits.Janakiraman CommitteeRecommended scrapping “ready forward” deals for non-government securities.
The Personal Side: Beyond The Stock Market
Harshad Mehta wasn’t just the “Big Bull” of Dalal Street—he was a son, husband, and father whose life off the trading floor was marked by contradictions.
The Joint Household
Born in Mumbai’s slums, Mehta’s rise to wealth didn’t erase his roots. He lived in a joint family with his mother, Rasila Mehta, and brothers.
Harshad Mehta had 3 brothers:
Ashwin Mehta,
Hitesh Mehta and
Sudhir Mehta.
He bought nine modest flats in Mumbai’s Madhuli Apartments in 1990 for ₹3.9 crores to keep everyone under one roof.
Harshad Mehta’s wife, Jyoti Mehta, describes their lifestyle as “simple”—luxuries like a Lexus LS400 (₹45 lakhs). The family was among India’s top taxpayers in the early 90s, paying almost ₹24cr in 1992.
The Scam’s Emotional Toll
The 1992 scandal didn’t just crash markets—it shattered relationships.
Legal Siege: Assets worth ₹20,677 crores were attached overnight, leaving the family without bank accounts for 20+ years.
Mother’s Struggle: Rasila Mehta, widowed in 1982, saw her assets frozen for 30 years. She died in 2020 at 84, her appeals unheard.
Son’s Burden: Aatur Mehta, Harshad’s son, faced stigma and legal battles from childhood. We didn’t find much information on him.
Media & Mental Health
After his arrest, Harshad faced 111 days in custody, daily CBI interrogations, and relentless media trials. News outlets labeled him a “scamster” without trial. Jyoti claims jail neglect worsened his health—no proper medical care, delayed treatments. The stress took a toll: his family says he developed heart issues, but authorities ignored warnings.
Even after his death, the Mehtas fight. Rasila died without seeing justice; Jyoti and son Aatur still battle 1,200+ tax and bank cases. Their offices were sold, homes nearly auctioned thrice (saved by Supreme Court orders).
The web series Scam 1992? They (Harshad Family) call it a “fiction” exploiting their trauma without consent.
The death of Harshad Mehta: Mystery or coincidence?
Harshad Mehta’s death on December 31, 2001, remains a wound for his family—and a puzzle for India.
The Official Story: Thane jail records say “heart attack.” But details are fishy. At 7 PM, Harshad complained of chest pain. Jail doctors had no heart meds—he begged them to use Sorbitrate tablets he’d handed over during his arrest.
They waited 4 hours to move him. By 11 PM, he collapsed in a hospital wheelchair. No autopsy report was shared with the family.
Jyoti calls it “gross neglect.” His brother Sudhir, jailed nearby, heard Harshad’s cries but wasn’t informed of his transfer. The family reached the hospital only after he died.
An inquiry was ordered, but its findings? Still hidden.
Conspiracy Theories:
Political Silencing: Rumors claim Harshad was killed for exposing a ₹1 crore donation to Congress during the Nandyal elections. No proof exists.
Systemic Revenge: The family believes his 1993 revelation about meeting PM Narasimha Rao (who allegedly asked him to “boost the markets”) made him a target. Post-scam, tax raids and asset seizures spiked.
Harshad Mehta’s Net Worth
There is no direct source giving his right net worth.
From harshadmehta.in, we found this
At his peak, that is, in 1992, Harshad Mehta’s assessed income was ₹2000 crore, and in 1990-91 around ₹190 crore and somehow the revised income is far from that number.
Harshad Mehta's peak net worth in 1992 was approximately Rs 500 crores, or $192 million, with an inflation-adjusted value of about Rs 4,961 crores or $620 million in 2025.
However, controversy says, with some sources citing higher figures like Rs 3,542 crores maybe with current valuations.
At this stage, it is certainly hard to justify finding out his net worth.
Aftermath
His death abated criminal cases, but civil battles raged. The Income Tax Department slapped the family with ₹30,000 crore in false claims (later reduced to ₹4000 crore after 1,200+ court wins).
Banks recovered ₹1,716 crore, but the Mehtas lost ₹20,677 crore from forced blue-chip stock sales.
Harshad Mehta’s Legacy: Hero, Villain, or Visionary?
Let’s cut through the noise. Harshad Mehta isn’t just a name—he’s a debate.
Was he a crook who wrecked India’s markets? A genius who exposed systemic rot? Or a flawed underdog who became a cult figure? Let’s unpack this.
The Villain Argument
The 1992 Scam: Mehta exploited "ready forward" deals, using fake bank receipts to siphon ₹30,000 crores (worth ~$27B today). He colluded with bankers, manipulated prices (ACC shares jumped 40x!), and triggered a market meltdown. Banks like Bank of Karad collapsed. Thousands lost savings.
Convictions: Courts found him guilty of fraud.
Public Harm: Pensioners, small investors—many never recovered.
But…
Harshad Mehta’s wife Jyoti claims he was a scapegoat. On harshadmehta.in, she argues:
Tax authorities harassed the family for 30 years.
Banks got their money back; the Mehtas lost ₹20,677 crores in forced asset sales.
The Visionary Angle
Market Player: Mehta saw loopholes others ignored. His "circular trading" tactics (buying shares through shell companies to inflate prices) were illegal but genius.
Reforms Triggered: His scam forced SEBI to tighten rules—transparent trading, stricter banking oversight.
Cultural Impact: The 2020 series Scam 1992 framed him as a tragic antihero. Even critics admit: "He made the stock market sexy for millennials."
But…
Visionary or opportunist? As CNBC noted, he was bit of both, mastermind and fall guy.
The Hero Narrative
Rags-to-Riches: Started with ₹40 in his pocket. Built an empire, employed thousands, and became the "Big Bull"—a symbol of ambition.
Pop Culture Icon: After Scam 1992, Gen Z sees him as a rebel. Memes call him "the OG Wolf of Dalal Street."
Family Defense: Jyoti insists he was "a family man" who paid taxes diligently. His ₹28 crore tax payment in 1991? Proof, she says, of his legitimacy.
But…
Heroes don’t leave trails of financial ruin. Vijay Kedia, trying to save him, says a thousand crore scams happen every year and go unnoticed.
The Verdict? It’s Complicated.
Harshad Mehta was all three—villain, visionary, and hero—depending on who you ask.
Harshad Mehta Movies and Books
The most popular book 'The Scam: From Harshad Mehta To Ketan Parekh' by Debashis Basu and Sucheta Dalal.
This book was used to develop the 2020, most trending web series ‘Scam 1992’ starring Pratik Gandhi as Harshad Mehta.
His life inspired movies like "The Big Bull" (2021), starring Abhishek Bachchan, and "Gafla" (2006), both offering dramatized views of his rise and fall in the stock market.
Harshad Mehta’s Influence on Today’s Investors
“Pump and Dump 2.0”
Redditors argue Mehta’s playbook never really died—it just evolved. Meme stocks like GameStop or AMC?
“That’s Harshad’s spirit in a hoodie,” jokes one user. The tactic of inflating prices through hype (then cashing out) remains alive, but with TikTok trends replacing newspaper leaks.
Modern Twist
Adani Parallels: Users compare the Adani-Hindenburg saga to Mehta’s era. “Adani’s rise feels eerily familiar—minus the fake bank receipts,” notes a thread.
Regulations: SEBI’s Tightrope Walk
After Mehta, SEBI tightened rules—online trading, demat accounts, stricter audits. But Reddit isn’t convinced. “SEBI acts like a parent who locks the door after the kid’s already stolen the car,” says a user.
Loopholes 2024:
Electoral Bonds: Some speculate Mehta would’ve thrived today. “Just buy electoral bonds, fund the right party, and you’re untouchable.”
Offshore Accounts: “Nirav Modi 2.0,” says a comment, pointing to how elites now park money abroad instead of forging BRs.
Two main things that Redditors learned:
FOMO Kills: “If everyone’s yelling ‘BUY ACC,’ maybe don’t,” warns a user.
Trust No One: “Brokers, influencers, politicians—they’re all salesmen.”
Would Harshad Survive Today?
Reddit’s verdict: Depends on his WhatsApp group.
Protected: “If he donated via electoral bonds, he’d be sipping chai with ministers, not in jail.”
To sum up Reddit: Harshad wasn’t a genius or a demon. He was just early ☠️.
Final Thoughts on Harshad Mehta
From Mumbai slums to ₹30,000 crore(if calculated today) scam king, Mehta exploited loopholes, manipulated markets, and crashed dreams. His 1992 downfall exposed India’s financial fragility. Legend Without the Scam? Maybe.
His market genius was undeniable, but greed trumped ethics.
Brilliance + shortcuts = disaster.
What India Learns:
Tighten regulations (SEBI’s still playing catch-up).
Educate retail investors.
Question “heroes” (markets reward patience, not hype).
Where’s the stock market Heading Today?
The stock market today is headed by influencer-led trading and speculative frenzies. Retail investors pour into markets like never before, but scams travel in Telegram groups and YouTube tutorials.
The lesson from Mehta? Trust, but verify.
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