Harshad Mehta: The Big Bull of Dalal Street

Harshad Shantilal Mehta, often referred to as the 'Big Bull' of the Indian stock market, was a controversial stockbroker whose meteoric rise and spectacular downfall left an indelible mark on India's financial history. Born on July 29, 1954, in a modest Gujarati family in Rajkot, Harshad spent his early years in Mumbai before moving to Raipur, where he completed his schooling.

After graduating with a degree in commerce from Lajpatrai College in Mumbai, Mehta dabbled in various odd jobs before finding his footing in the stock market. Starting as a jobber at the Bombay Stock Exchange (BSE), he learned the intricacies of trading and soon became known for his keen sense of market trends.

Mehta’s big break came in the late 1980s and early 1990s when he leveraged loopholes in the Indian banking system to orchestrate what became the infamous securities scam of 1992. Exploiting a lack of regulatory oversight, Mehta manipulated banks into issuing fake bank receipts (BRs), which he used to raise vast sums of money. He then invested these funds in the stock market, driving up the prices of select shares to unprecedented levels. Stocks of companies like ACC, which traded at Rs 200, soared to Rs 9,000 within months, earning him the nickname ‘Big Bull’.

During this period, Harshad Mehta became a symbol of wealth and success. He lived a lavish lifestyle, owning a fleet of luxury cars, including a Toyota Lexus, and a sprawling penthouse in Mumbai. The media celebrated him as a financial genius who brought ordinary investors into the stock market.

However, Mehta’s empire began to crumble in April 1992 when journalist Sucheta Dalal exposed the scam in ‘The Times of India’. Her investigations revealed how Mehta had siphoned off Rs 500 crore from the banking system to fuel his stock market operations. This disclosure led to a massive crash in the stock market, wiping out the savings of countless small investors and shaking the foundations of India’s financial system.

Mehta was arrested and faced multiple charges of fraud, cheating and criminal conspiracy. The scam, estimated at over Rs 4,000 crore, prompted significant reforms in India’s financial and regulatory systems, including the establishment of the Securities and Exchange Board of India (SEBI) to oversee stock

market activities.

Despite his legal troubles, Mehta maintained that he was a victim of systemic issues and corruption within the financial sector. While some admired his audacity and financial acumen, others viewed him as a symbol of greed and unethical practices.

On December 31, 2001, Harshad Mehta passed away due to a heart attack while in judicial custody. His death marked the end of an era but left behind a complex legacy.

Harshad Mehta's life story, dramatised in books and web series like ‘Scam 1992: The Harshad Mehta Story’, continues to fascinate audiences. His rise and fall serve as a cautionary tale about ambition, greed and the need for robust financial regulations in a rapidly evolving economy.