Ram Jethmalani – Lawyer of Harshad Mehta

Harshad Mehta hired top attorneys when he became embroiled in an elaborate fraud in 1992; Ram Jethmalani was among them and provided legal representation against 70 criminal charges filed against them and Mehta and Ketan Parekh.

Criminal proceedings against Mehta have long since been resolved; however, civil suits pertaining to money owed by him to various institutions remain.

He was a lawyer

Lawyers are professionals who practice law and specialize in specific areas. A lawyer’s responsibilities include giving legal advice to his or her clients and representing them in court proceedings; protecting client rights; not seizing property without their permission, having great interpersonal skills and possessing knowledge of both prosecution and defense legal cases simultaneously – among many other duties.

The Harshad Mehta Stock Market Scam was an extraordinary scandal which rocked Indian securities industry in 1993. This fraud and embezzlement scheme involved massive fraud and embezzlement of millions of rupees by an association of brokers. According to many accounts, this fraud destroyed some of India’s richest families as well as sending markets spiraling downwards – still being litigated 25 years later!

Harshad Mehta passed away in prison following suffering a heart attack, his wife Jyoti alleges that prison officials neglected her husband by not transporting him for four hours after his initial heart attack had begun. Furthermore, Jyoti claims she has been harassed for three decades by Income Tax department and custodian staff members.

Mehta was charged in 1992 of drawing funds fraudulently from banks to increase market growth. Using fake bank reference letters (BRs), funds would be taken out from certain banks before being diverted towards stock purchases at inflated prices and retired as soon as the money had come pouring in – all done without his knowledge!

Mehta’s lawyers attempted to claim there was no illegality in his conduct, as per law there is no allowance for insider trading in India. Unfortunately, this claim was discredited by the courts.

As this case has dragged on for over 25 years, some have suggested it should be dismissed; others believe courts must review similar cases more judiciously. Yet most parties now find the case irrelevant as family members attempt to stay apart to protect assets from being attached by creditors.

He was an advocate

Harshad Mehta lost much of his wealth due to the 1992 stock market scam and was banned from trading securities market securities. While this scandal brought down his family, Ashwin Mehta rose above it all by becoming a practicing lawyer in Mumbai with an estimated net worth of approximately $4 Million and 25 years of advocacy experience under his belt.

He is best known for representing prominent clients like BJP leader LK Advani in a hawala case, Jayalalithaa in her disproportionate assets case, Kanimozhi during her 2G scam trial and RJD leader BS Yediyurappa during a fodder scam trial – in all these instances he secured many acquittals proving him one of Mumbai’s premier lawyers.

Harshad Mehta did not commit a crime with any criminal intent. Instead, his brokerage firm paid all its debts on time. Banks recognized this and decided not to prosecute; rather they accepted that Harshad would transfer some of his profits as payment and did not punish him accordingly – keeping their profitability levels at an optimal level.

Harshad Mehta discovered an innovative way of extracting more money out of RF deals by creating a chain of Bear Cartel deals and then using his money against Bear Cartels on the stock market.

He managed to gain bank securities against fraudulent cheques signed by corrupt officials, which were transferred to his Growmore firm and then invested by industrialists, brokers, and politicians – the entire scheme was an elaborate fraud with Ashwin Mehta playing an instrumental role. Following his arrest he spent three months in jail before agreeing to settle most of his liabilities but is still fighting various court cases that remain outstanding.

He was a judge

Ram Jethmalani, an esteemed Indian lawyer, has long represented Harshad Mehta – the kingpin in the 1992 securities scam that rocked both stock markets and nation – against allegations that were brought forth. Jethmalani was amongst the first lawyers to represent Mehta during this case and fought hard on his behalf.

Mehta was accused of engaging in stock market fraud and diverting bank funds for his own use, leading some finance experts to suspect him of engaging in any such activity; others assert he simply exploited loopholes in the system. For example, during the tight money market of 1990s when call money rates were high, borrowing banks issued bank receipts, commonly known as BRs, to sell bonds they held; these BRs could then be used on stock exchanges for purchasing shares; effectively shorting bonds while longing stocks; thus shorting bonds while going long on stocks simultaneously.

Similar to Mehta’s practices at other banks, Mehta would borrow funds from various sources before lending it out temporarily to clients to meet margin requirements. These transactions, known as Ready Forward (R/F) trades, became part of his regular business practices at that time and settled by netting out transactions to reduce exchange of payments and delivery of securities; furthermore, any BRs earned were directly deposited into Mehta’s account instead of going back through borrowing banks.

Jethmalani asserted that R/F trades did not violate any BSE rules or regulations, nor any byelaws. He provided examples of other brokers engaging in similar practices and complained about CBI investigations conducted without disclosing relevant facts to the court.

At last, a special court sentenced six of the 10 accused in this scam to prison terms; Mehta died with 27 cases against him still outstanding – upon hearing of this news, the court decided against abating this case against him.

Mehta’s family members have won in numerous appeals before Bombay High Court and Supreme Court, which should help secure income tax refunds and get assets returned from custodian. But their fight is far from over: nearly 21 years after the scam occurred they still face harassment from both entities.

He was a journalist

As soon as the Harshad Mehta stock scam was revealed, many Mumbai-based lawyers saw their careers accelerate dramatically. Ram Jethmalani quickly emerged as a premier attorney. He handled many high-profile cases such as Afzal Guru’s defense as well as those against Manu Sharma. Furthermore, he has written books covering topics like private international law, media law, and conflict of laws.

Ashwin Mehta was embroiled in the 1992 stock fraud case that brought shame upon his family, yet managed to rebound from this misfortune and become an accomplished lawyer with a net worth of more than $4 Million and many awards to show for it. Ashwin studied law at Holy Cross Byron Bazar before embarking on his legal career.

Apart from his legal practice, he was also widely-recognized journalist. From 1980 until 1998 he contributed columns for both Times of India and Indian Express newspapers before receiving the Padma Shri award – the fourth highest civilian accolade awarded by India.

Harshad Mehta was accused of defrauding the stock market in 1992 by illegally withdrawing funds from banks; however, some finance experts do not view his behavior as illegal and believe that he simply exploited loopholes to make illicit gains.

CBI conducted its investigation along predetermined lines without disclosing that Harshad was subject to BSE’s rules, regulations, and bye-laws; his transactions were recorded as principal without paying brokerage to banks or PSUs; furthermore, Bye-Law 236 mandates that those purchasing securities have an obligation to make payments for such purchases upfront.

Though he was charged with multiple offenses, he was only sentenced to time-served by the Supreme Court. Additionally, a former custodian indicated that over 70% of pending cases in special courts related to Harshad Mehta are being postponed financially and may indicate this case is being delayed deliberately.