The 1992 Big Bull scandal: How one man scammed the stock market for millions
If you know about the stock market, then you must have heard of the name Harshad Mehta. He has been involved in a big, if not the biggest, scandal in the Indian stock market. Due to his actions, the financial market of the country was badly shaken in the 1990s and millions of people lost their money. Now a film is made on his scam, named ‘The Big Bull’.
Abhishek Bachchan is playing the role of share broker Harshad Mehta in this film. Ileana D’Cruz is also playing a major role in this film, along with Ram Kapoor, Nikita Dutta, and Lekha Prajapati. It is made under the banner of Ajay Devgan Films and Ajay Devgan is its main producer. A total cost of Rs 85 crore has been estimated in the making and promotion of this film and it will be shown on Amazon Prime Video.
The film is based on the life of Harshad Mehta and the financial crimes and scams he committed which is estimated to be around Rs 4000 crores. It will show the real events of the stock market from 1990 to 2000.
Harshad Mehta was born in Rajkot, Gujarat. He studied B.Com from Lajpat Rai College and started working as a salesperson at New India Assurance Company Limited and it was there when he got interested in the stock market. He learned all the tricks of the stock market and started his own company named GrowMore Research and Asset Management in 1984. He also became a member of the Bombay Stock Exchange.
He began trading heavily in the shares of Associated Cement Company (ACC) and its price rose from Rs 200 to Rs 9000. By 1990, Harshad Mehta became a common name among investors. He was touted ‘Big Bull’ because he started the bull run in the stock market. His penchant for expensive home and expensive vehicles brought him into the limelight. But people soon began to question where is all this money coming from?
In 1992, things came to light. It was found that Harshad Mehta used to take a 15-day loan from the bank and invest it in the stock market. Also, within 15 days he used to return the money with profit to the bank. Mehta used to raise money from banks by taking a loan for 15 days as a middleman between two banks and then used to return the money to the banks by making a profit. He would make a fake BR from one bank which he used to get money from other banks.
However, after exposing this scandal, 72 charges were levied on Mehta and a civil case was filed! He was found guilty in only one case and was arrested for his crimes. The Supreme Court found him guilty and sentenced him to 5 years in jail and a fine of Rs 25,000. Mehta was lodged in Thane jail.
Late on 31 December 2001, he complained of pain, after which he was admitted to Thane Civil Hospital. He died in the hospital later on.
Even 25 years after the scandal, banks are still recovering the scammed amount from Mehta’s family. The custodian sold more than Rs 6,000 crore of Mehta’s properties and released them to the banks and income tax department. In 2017, Mehta’s family gave Rs 614 crore to the bank. # 1992 Big Bull scandal