Scam 1992 - Harshad Mehta Hero or Villain?

Harshad Mehta is a well-renowned name in the Indian educated society. He was referred to as ' The Big Bull' in many places. He was the one who is said to be responsible to make Stock Market a breakfast table discussion in every common household. Harshad Mehta actually had proven that the journey from ' Farsh To Arsh' was actually possible. An outsider had entered the stock market and not only made his space but actually became the king of the market. 

In many families, he is still looked down upon as they blame him for their losses. Many lost their entire life savings and many of their lives. But my question is - Was Harshad Mehta really responsible for what happened to the common man?

In business, there is always a risk, and the higher the profits higher the risk. There were many who lost their life savings in the market crash, many who had to start from zero and many who were under debt. But whose fault was it actually? My viewpoint says that it was every individual's fault who was expecting to earn profit without being prepared to bear the risks associated.

When you plan to start a business, you know very well that there is a chance you might fail. You keep emergency funds, you create back up plans, and then invest in your business. Any business is dependant on both internal and external factors and the ratio of internal and external factors differs as per the nature of the business. Similar is the share market and the business of buying and selling shares of the company. Here the product though is very sensitive to external factors.

The people who risked there everything and invested according to Harshad Mehta's tips were also the ones who were expecting to earn profits in multiples without understanding the basics of the market or working for it. These were people who wanted to earn more and as I said earlier, the higher the profits, the higher will be the risk. 

So Harshad Mehta was definitely not a Villian.

Many consider him a hero, many admire him, many want to become like him. For them, I would like to point out that he might have had amazing selling pitch and negotiating skills but he was no hero too. He did what everyone was doing, i.e., exploiting the loopholes in the system and make a fortune. He wanted an escape from the life of poverty and he found his way out of it through his skills and confidence. He had ambitions and he fulfilled them. That is what every common man dreams of. 

In conclusion, Harshad Mehta was not a villain and he was no hero too. Harshad Mehta was a common man, who got sacrificed because of the system and its faults. He did what everyone was doing but the only mistake he made was that he got caught.

But the good thing that happened after this was that the loopholes in the system were corrected which wouldn't have been exposed if it were not for Harshad Mehta. Though that did not mean that there were no other scams that ever happened. Many more and bigger scams happened after that, some were exposed, some are being investigated and many are still hidden safely behind the powerful and rich faces of our country. We cannot stop the scams from happening, we cannot control the external elements. All we can do is control the internal.

Learnings from Scam 1992 and the Harshad Mehta Story: 

1. Take risk but only to the extent that you are prepared for.

2. Savings are a must. Always have an emergency fund.

3. Cut your coat to suit your cloth( 'pair utne hi failane chaiye jitni lambi chadar ho.')

4. Rely only on yourself. In the end, only you can help yourself.

5. Change is the only constant. Be prepared for it.

6. Take responsibility for your own decisions and life.

Divya Toshniwal

Also Read :

Pay Yourself First


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