This article discussed the Harshad Mehta scandal in detail. It discusses how Harshad Mehta could pull off such a huge scandal and what the motivations of the. Hence after studying and doing the deep analysis, I have written the detailed case study in simple language about the Harshad Mehta scam, so that everyone . The Harshad Mehta case can only end in stages. Firstly, the I-T Department will have to re-assess its claims and come up with a figure that is.

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The Harshad Mehta Scam in India (1992)

The background on Ethics in Indian Businesses has been discussed in the article: Ethics in Indian Businesses. Harshad Mehta was a well-known stock broker, alleged to have manipulated the stock market in by drawing out funds from banks fraudulently. Some finance experts believe, Harshad Mehta did not commit any fraud, “he simply exploited loopholes in the system,” they opine. The securities scam of refers to a diversion of bank funds worth Rs crore to a clutch of stockbrokers – the kingpin being Bombay-based broker Harshad Mehta.

The funds thus drawn out were funnelled into the stock market. Partly, this caused the market Sensex to surge to over points. It is said, stocks like ACC surged from about Rs per share to about Rs apiece during this period.

Harshad Mehta and his associates and a few other brokers siphoned off funds from interbank transactions and bought shares across sectors, resulting in a stupendous rise in Sensex.

» Indian Stock Market Scam by Harshad Mehta: Implications – Case Study

Mehta was arrested by investigation agencies in November He was charged with over 70 criminal cases mostly relating to bribery, cheating, forgery, criminal conspiracy and falsification of accounts and over civil action suits. On Decemberat the age of 48, Mehta died with 27 cases still harshhad.


All criminal cases against Harshad Mehta got disposed off a few years ago, but there are several civil cases awaiting final closure. The civil cases pertain to monies Mehta owes to different institutions. The Mehta family – led by Ashwin Mehta, who also represents the family in court – is fighting the case at various levels – right from reducing their net liabilities to safeguarding family assets from recovery and liquidation.

The court appointed a custodian to attach properties and receivables of Harshad Mehta and redistribute the same to creditors and other court-decreed parties. The custodian has been managing the attached assets of Mehta for the last 24 years.

Ltd when they sold their Mehra turned out be fabricated. Auditors have come under intense scrutiny – they have to see to it that every internal financial control IFC prescribed under the Companies Act is followed by a company, among other things.

Independent directors are only independent on paper. Directors are picked from an “old boy’s network” – they are people close to a promoter or from a familiar circle. Today, promoters who pledge shares must disclose it to Sebi.

Indian companies are roping in specialists to manage their whistle-blowing mechanisms. He was convicted, along with founder Kenneth Lay and CFO Andrew Fastow, for cooking the energy-trading company’s books to hide its shaky finances, including overstating profits. Skilling’s sentence was reduced by a decade to 14 years and he will now be released in He pleaded guilty in and was handed a year prison sentence.

The man after whom the eponymous schemes were named. Ponzi took thousands of investors for a ride through a scheme involving postal reply coupons bought in Europe and sold in the US and profiting from the difference. He was convicted in and spent time in prison before being deported to Italy in An entrepreneur and television personality who redefined domestic lifestyle for many Americans, she was convicted in of insider-trading charges in a transaction involving the sale of shares in a company owned by her friend.


The Indian Institute of Technology and Harvard-educated year-old former head of McKinsey worldwide was recently released after serving a two-year prison term beginning June, He was convicted in a high profile trail in of passing confidential boardroom information to his one-time friend and business associate Raj Rajaratnam. On March 1,the SEC filed an administrative civil complaint against Gupta for insider trading with billionaire and Galleon Group hedge fund founder Rajaratnam.

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What’s the securities scam? How was the scam carried out? What happened to Harshad Mehta? What happened to kf cases? What’s the custodian’s role in Harshad Mehta case?

Ethics in Indian Businesses: Case Studies of Harshad Mehta, Ranbaxy, Satyam& Others

Satyam is not really Satyam! Read times Last modified on Monday, 16 April DecemberPart – 3 Inthe Union Government announced minimum support prices for Login to post comments. Please key in your e-mail address. Products Campus Jobs Bank Jobs.