Mumbai, November 29: After a long legal battle lasting over 24 years, the Bombay High Court has finally convicted the 6 people accused of the disastrous 1992 securities scam. Though the prime accused Harshad Mehta, had already passed away in 2002, the court has today convicted his brother, Sudhir Mehta and five other accused.
The infamous scam that gained notoriety for proving to be a turning point in the Indian economy, involved defrauding money from the National Housing Bank to the tune of Rs 700 crore. The case had been extended for so long citing health problems suffered by the accused.
The people convicted in the Bombay High Court judgement today include Sudhir Mehta, stock broker Deepak Mehta, (Harshad Mehta’s cousin), NHB officials C Ravikumar and Suresh Babu, SBI officer R Sitaraman and stock broker Atul Parekh. The accused were charged with cheating, forgery and criminal breach of trust under the Prevention of Corruption Act under the Indian Penal Code.
The convicted had illegally procured money from banks to invest in the stock market. Harshad Mehta was an intelligent broker who manipulated banks into giving him the money allotted to compulsory investment in government securities. He and his partners the funnelled that money into the stock market leading to a dramatic rise in the value of certain stocks.When bankers got wind of this, they started demanding their money back thereby making the entire financial system plummet.