Harshad Mehta was a stockbroker who exploited loopholes in India's banking system in the early 1990s to manipulate stock prices and defraud banks of Rs. 4,000 crore. By using instruments like ready forward deals and fake bank receipts, Mehta was able to drive up prices of various stocks tremendously before the scam was exposed by a journalist in 1992. The scam had widespread impacts, including losses for banks, regulatory changes by the RBI, and investigations and arrests of individuals involved, including Mehta himself who died in prison in 2001 under mysterious circumstances.
The scam can be categorized as capital market scam
in which it is done by manipulating the facts in order to attain enormous funds.
There are four different aspects of the scam.
Diversion of funds
Intra day trading
Use of ready forward to maintain SLR
Fake bank recipts
The scam can be categorized as capital market scam
in which it is done by manipulating the facts in order to attain enormous funds.
There are four different aspects of the scam.
Diversion of funds
Intra day trading
Use of ready forward to maintain SLR
Fake bank recipts
The Harshad Mehta Scam Exposed. The entire mechanism and who were the key parties involved, the aftermath and the effects of the scam on the stock market and the overall Indian Economy. The ethical issues involved and the action taken to prevent any such scams in the future by the government.
this ppt is about one of the biggest scam in india. mastermind behind the scam was Harshad Mehta who acted broker between the banks. he used banks money for trading purpose.
This was the second most important scam that rocked the Bombay Stock Exchange after the Harshad Mehta scam. Ketan Parekh is a former stock broker from Mumbai,who was convicted in 2008, for the involvement in India stock market manipulation,that occured from late 1998 to 2001.
The Harshad Mehta Scam Exposed. The entire mechanism and who were the key parties involved, the aftermath and the effects of the scam on the stock market and the overall Indian Economy. The ethical issues involved and the action taken to prevent any such scams in the future by the government.
this ppt is about one of the biggest scam in india. mastermind behind the scam was Harshad Mehta who acted broker between the banks. he used banks money for trading purpose.
This was the second most important scam that rocked the Bombay Stock Exchange after the Harshad Mehta scam. Ketan Parekh is a former stock broker from Mumbai,who was convicted in 2008, for the involvement in India stock market manipulation,that occured from late 1998 to 2001.
A case study on how Harshad Mehta scammed the entire stock market. There are certain examples and history on how he played a role as a stockbroker.
The underlined and highlighted words can be googled to further more enhance your knowledge.
In the fiscal year 2023, the Reserve Bank of India (RBI) documented bank frauds exceeding 302.5 billion rupees, equivalent to INR 30,000 cr. While this marked a decrease from the 1.3 trillion rupees reported in 2021, signifying a reversal in the trend of escalating bank frauds in India over the past decade, both in terms of the total number of frauds and their monetary value[1], the current figure is still staggering and citizens need to keep caution to protect their financial interest.
An additional study revealed a notable 69% of online fraud cases among Indian consumers in 2021, as reported in the Microsoft 2021 Global Tech Support Scam Research. The data from the Reserve Bank of India (RBI), while potentially excluding numerous undetected frauds, indicated a total value of scams amounting to 60,414 cr in the fiscal year 2021–2022. In the landscape of India’s financial sector, 2023 has been marked by a surge in sophisticated scams that exploit evolving technologies and capitalize on unsuspecting individuals. From the pervasive rise of UPI-related frauds to the cunning schemes enticing victims with unrealistic investment returns, the financial realm has witnessed a diverse array of fraudulent activities. QR code scams, part-time job deceptions, and the alarming emergence of courier scams targeting the youth have added new dimensions to the threat landscape.
Additionally, the omnipresence of malware-driven cybercrimes and the persistent challenge posed by tech support scams further underscore the need for heightened vigilance in navigating the intricate landscape of financial transactions. This overview delves into the top financial scams of 2023, shedding light on the methods, trends, and impacts that define the evolving face of financial fraud in the country.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
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USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
2. Rags to riches
Name: Harshad Shantilal Mehta
Born in: 29 July 1953, at Paneli Moti, Rajkot District
Died in: 31 December 2001
Profession: Stockbroker
He earned degree in Bachelor of Commerce
Started his working life as an employee of the New India
Assurance Company
3. In the early eighties he quit his job and sought a job
with stock broker P. Ambalal affiliated to Bombay Stock
Exchange
He became a jobber on BSE for stock broker P.D. Shukla
after that
In 1981 he became a sub-broker for stock brokers J.L.
Shah and Nandalal Sheth
He took advantages of loopholes in banking system
4. What happened ?
• By 1990 Harshad Mehta had risen to prominence in the
stock market. He had been buying shares heavily. The
shares which attracted his attention were:
• - Associated Cement Co. (ACC),
• - Apollo Tyres,
• - Reliance,
• - Tata Iron and Steel Co. ( TISCO ),
• - BPL,
• - Sterlite,
• - Videocon.
• He took the price of ACC from 200 to 9000. That’s an
increase of 4400%!!!
5. “The big bull’s” explanation
• Mehta had Replacement cost theory as an
explanation.
• The theory basically argues that old
companies should be valued on the basis of
the amount of money which would be
required to create another such company.
6. Exposure of 1992 Securities Scam
On April 23, 1992, journalist Sucheta Dalal exposed
Mehta's scam
She is columnist in Times Of India
8. Ready Forward Deal
A secured short-term (typically 15-day) loan from one bank to
another
Bank lends against government securities
A broker usually brings together two banks for which he is paid a
commission
The securities and payments were delivered through the broker in
the settlement process
In such settlement the banks may not know with whom they are
dealing
9. The process of RF
• Settlement Process
• Payment of cheques
• Dispensing of securities
10. Bank Receipts
In a RF deal securities were not moved back and forth in actuality
The borrower, i.e. the seller of securities, gave the buyer of the
securities a Bank Receipt
Bank receipts serve three functions
1) Confirms the sale of securities
2) States that the securities are held by the seller in trust for the
buyer
3) Acts as a receipt for the received money by the selling bank
In this scam Bank of Karad & Metropolitan Co-operative Bank had
issued fake BR
11. Was it that Easy ???
Borrower bank
Broker
Harshad Mehta
Lender bank
Issue fake BR
Funds
13. Impact on others
• Mehta had by then swindled the banks of a
staggering Rs 4,000 crore
• Bribery case on P. V. Narsimha Rao
• Stay on Liberalisation
• Holding banks of fake BR had to face losses
• BR was removed by RBI
14. • M. J. Pherwani of UTI also died in the scandal
• K. M. Margabandhu, then CMD of UCO Bank
was arrested
• V. Mahadevan, one of the M.D. of India’s
largest Bank, the S.B.I., were removed from
his office
15. Regulatory Actions Taken Against
Mehta
• He was later charged with 72 criminal offenses,
and more than 600 civil action suits were filed
against him
• He was arrested and banished from the stock
market
• Mehta and his brothers were arrested by the CBI
on November 9, 1992 for allegedly
misappropriating more than 27 lakh shares of
about 90 companies
16. Its all about the money!
• Where has all the money gone?
• It is rumored that a part of the money
was sent out of India through the Havala
racket, converted into dollars/pounds,
and brought back as India Development
Bonds.
18. This game, too, did not last long.
• He died in Thane Prison, Mumbai, he complained
of chest pain and was moved to a hospital, where
he died, at the age of 47, 31st Dec. 2001
• Mehta’s death remains a mystery. Some believe
that he was murdered ruthlessly by an
underworld nexus
• Some members of nexus was moved to Thane Jail
and landed up in the cell next to Harshad Mehta
20. • Harshad Mehta was brave stock broker. He
knew the loopholes in banking system as well
as how to exploit that loopholes.
• His whole intension to do this was to rise in
SENSEX.
21. Ethical behavior
• Acts only if it affects
• People forget things easily
• Government taking things lightly
• THUS Within 10 years history repeated
Same things
Same story
Same people
Same Government
Just a new name to blame Ketan Parekh
Editor's Notes
Lets say that there are two banks A (short) and B (plus). Now what Harshad Mehta did was that he told the banker at A that he was dealing with many banks and hence did not know who would he deal in the end with. So he said that the bank should write the cheque in his name rather than the other bank (which was forbidden by law), so that he could make the payment to whichever bank was required. Since he was a trusted broker, the banks agreed. Then, going back to the example of bank A and B, he took the money from A and went to B and said that he would pay the money on the next day to B but he needed the bonds right now (for A). But he offered a 15 % return for bank B for the one day extension. Bank B readily agreed with this since it was getting such a nice returnNow since Harshad Mehta was dealing with many banks at the same time he could then keep some capital with him at all times. For eg. He takes money from A on Monday,Now since Harshad Mehta was dealing with many banks at the same time he could then keep some capital with him at all times. For eg. He takes money from A on Monday,and tells B that he’ll pay on Tuesday, then he takes money from C on Tuesday and tells D that he’ll pay on Wednesday and the money he gets from C is paid to B and as a result he has some working capital with him at all times if this goes on with other banks throughout the week. The banks at that time were not allowed to invest in the equity markets. Harshad Mehta had very cleverly squeezed some capital out of the banking system. This capital he invested in the stock market and managed to stoke a massive boom.
The Settlement Process: The normal settlement process in government securities is that the transacting banks make payments and deliver the securities directly to each other. During the scam, however, the banks or at least some banks adopted an alternative settlement process which was similar to the process used for settling transactions in the stock market. In this settlement process, deliveries of securities and payments are made through the broker. That is, the seller hands over the securities to the broker who passes them on to the buyer, while the buyer gives the cheque to the broker who then makes the payment to the seller. In this settlement process, the buyer and the seller may not even know whom they have traded with, both being known only to the broker. There were two important reasons why the broker intermediated settlement began to be used in the government securities markets: The brokers instead of merely bringing buyers and sellers together started taking positions in the market. In other words, they started trading on their own account, and in a sense became market makers in some securities thereby imparting greater liquidity to the markets. When a bank wanted to conceal the fact that it was doing an RF deal, the broker came in handy. The broker provided contract notes for this purpose with fictitious counter parties, but arranged for the actual settlement to take place with the correct counter party. Payment Cheques: A broker intermediated settlement allowed the broker to lay his hands on the cheque as it went from one bank to another through him. The hurdle now was to find a way of crediting the cheque to his account though it was drawn in favor of a bank and was crossed account payee. As it happens, it is purely a matter of banking custom that an account payee cheque is paid only to the payee mentioned on the cheque. In fact, exceptions were being made to this norm, well before the scam came to light. Privileged (corporate) customers were routinely allowed to credit account payee cheques in favour of a bank into their own accounts to avoid clearing delays, thereby reducing the interest lost on the amount. Normally, if a customer obtains a cheque in his own favour and deposits it into his own account, it may take a day or two for the cheque to be cleared and for the funds to become available to the customer. At 15% interest, the interest loss on a clearing delay of two days for a Rs. 100 crorescheque is about Rs. 8 lakhs. On the other hand, when banks make payments to each other by writing cheques on their account with the RBI, these cheques are cleared on the same day. The practice which thus emerged was that a customer would obtain a cheque drawn on the RBI favoring not himself but his bank. The bank would get the money and credit his account the same day. This was the practice which the brokers in the money market exploited to their benefit.Dispensing the Security: The brokers thus found a way of getting hold of the cheques as they went from one bank to another and crediting the amounts to their accounts. This effectively transformed an RF into a loan to a broker rather than to a bank. But this, by itself, would not have led to the scam because the RF after all is a secured loan, and a secured loan to a broker is still secured. What was necessary now was to find a way of eliminating the security itself!There are three routes adopted for this purpose:1. Some banks (or rather their officials) were persuaded to part with cheques without actually receiving securities in return. A simple explanation of this is that the officials concerned were bribed and/or negligent. A more intriguing possibility is that the banks' senior/top management were aware of this and turned a Nelson's eye to it to benefit from higher returns the brokers could offer by diverting the funds to the stock market. One must recognize that as long as the scam lasted, the banks benefited from such an arrangement. The management of banks might have been sorely tempted to adopt this route to higher profitability.2. The second route was to replace the actual securities by a worthless piece of paper – a fake Bank Receipt (BR). This is discussed in greater detail in the next section.3. The third method was simply to forge the securities themselves. In many cases, PSU bonds were represented only by allotment letters rather than certificates on security paper. And it is easier to forge an allotment letter for Rs. 100 crores worth of securities than it is to forge a 100 rupee note! Outright forgery of this kind however accounted for only a very small part of the total funds misappropriatedBank Receipt:
In an RF deal, as we have discussed it so far, the borrowing bank delivers the actual securities to the lender and takes them back on repayment of the loan. In practice, however, this is not usually done. Instead, the borrower gives a Bank Receipt (BR) which serves three functions: The BR confirms the sale of securities. It acts as a receipt for the money received by the selling bank. Hence the name – bank receipt. It promises to deliver the securities to the buyer. It also states that in the meantime the seller holds the securities in trust for the buyer. In short, a BR is something like an IOU (I owe you securities!), and the use of the BR de facto converts an RF deal into an unsecured loan. The lending bank no longer has the securities; it has only the borrower's assurance that the borrower has the securities which can/will be delivered if/when the need arises.BRs Issued without Backing of Securities As stated earlier, a BR is supposed to imply that the issuer actually has the securities and holds them in trust for the buyer. But in reality the issuer may not have the securities at all. There are two reasons why a bank may issue a BR, which is not backed by actual securities:A bank may short sell securities, that is, it sells securities it does not have. This would be done if the bank thinks that the prices of these securities would decrease. Since this would be an outright sale (not an RF!), the bank issues a BR. When the securities do fall in value, the bank buys them at lower prices and discharges the BR by delivering the securities sold. Short selling in some form is an integral part of most bond markets in the world. It can be argued that some amount of shortselling subject to some degree of regulation is a desirable feature of a bond market. In our opinion, an outright sale using a BR, which is not backed by securities, is not harmful per se though it violates the RBI guidelines.2. The second reason is that the bank may simply want an unsecured loan. It may then do an RF deal issuing a "fake" BR which is a BR without any securities to back them. The lending bank would be under a mistaken impression that it is making a secured loan when it is actually advancing an unsecured loan. Obviously, lenders should have taken measures to protect themselves from such a possibility (This aspect will be examined later when we discuss the banks' control system in general and counterparty limits in particular.) During the scam, the brokers perfected the art of using fake BRs to obtain unsecured loans from the banking system. They persuaded some small and little known banks – the Bank of Karad (BOK) and the Metropolitan Cooperative Bank (MCB) - to issue BRs as and when required. These BRs could then be used to do RF deals with other banks. The cheques in favour of BOK were, of course, credited into the brokers' accounts. In effect, several large banks made huge unsecured loans to the BOK/MCB which in turn made the money available to the brokers.
He believed in bull market , which was very rare at that time. And believed in rising the price instead of decreasing it.The index fell from 4500 to 2500 representing a loss of Rs. 100,000 crores in market capitalization.
People also say that this big scam cant be done by one person, so all the money was divided whos mane was never been disclosed
2,200 crore recovered from Harshad Mehta scam going nowhere PrabhakarSinha TNN New Delhi: The money recovered from Harshad Mehta-led 1992 banking securities scam is lying idle.The distribution of 2,200 crore recovered from Mehta group by the custodian appointed under a Special Act by government is not taking place due to differences between two major claimants -- the I-T department and banks and financial institutions (FIs) -- which have lost money in the scam.It is learnt that the custodian has attached enough assets from Mehta group,more than enough to meet the liabilities of banks,FIs and I-T departments.But,all the money is not going to come at one point of time.As the attached assets are cleared by a Special Court,created under the act,for sale in the market,custodian sells them to generate cash.At present,the custodian is sitting on a cash of over Rs 2,200 crore.AnotherRs 800 crore is expected to be generated by sale of some more assets,However,attachment of them has been challenged in the Supreme Court and ajudgment on this is likely to come soon.Besidesthis,assets worth around Rs 1,000 crore is in the process of getting clearance for sale to meet liabilities.So,a total of around Rs 4,000 crore is likely to be recovered.As against this,I-T department is demanding Rs 2,100 crore and banks Rs 1,700 crore.The department is claiming that it should be paid their dues of Rs 2,100 crore from the present kitty of Rs 2,200 crore and banks can be paid later.Earlier,I-T department had raised a demand of Rs 22,000 crore against loss from the scam and banks claimed Rs 5,500 croreloss.However,an earlier judgment of the Supreme court restricts priority claims to principal amount only,disallowing any penalties or interests on them.This restricted the I-T department's demand to Rs 2,100 crore and that of banks to Rs 1,700 crore.Banks argued that the main objective of the Special Court is to recover the losses suffered by them.However,in the details of the act,banks' claims come after the I-T department.When contacted,custodianSatishLopmba,who is the statutory authority under the act for acquisition,management and liquidation of assets,said that there were sufficient assets to satisfy the primary claims of all the agencies to a large extent.He said that a consensus was being attempted within the government to facilitate release of funds recovered from Harshad Mehta Group.Hehowever,clarified that these things would finally be a matter of judicial determination.Interestingly,banks and financial institutions are ready for a pro-rata distribution,though it is not yet clear whether the law permits that.IfRs 2,200 crore is distributed through proratabasis,I-T department will get around Rs 1,216 crore,while banks and financial institutions will get Rs 984 crore.Among the banks,the State Bank of India will get the largest amount,followed by Standard Chartered Bank.Times of India - puneThursday,September 16, 2010
During his judicial custody, while he was in Thane Prison, Mumbai, he complained of chest pain and was moved to a hospital, where he died, at the age of 47, 31st Dec. 2001. Mehta’s death remains a mystery. Some believe that he was murdered ruthlessly by an underworld nexus.In this context, it might be noteworthy that a certain criminal allegedly connected with this nexus had inexplicably surrendered just days after Harshad Mehta was moved to Thane Jail and landed up in imprisonment in the same Jail, in the cell next to Harshad Mehta.