FOR any mega-event, be it a movie or a financial scam, there has to be a sequel. And Harshad Mehta, the alleged central figure in the securities scandal that whisked a cool 30 billion rupees (about HK$7 billion) off Indian stock markets last year, is backin the limelight.
Nine companies, 264 dummy stockholders and 250 million rupees worth of shares were the cold figures being quoted by the income tax authorities as they try to close in on the elusive broker, who has managed to maintain his lavish lifestyle, despite the fact that his assets were attached in wake of the scam disclosures in April last year.
Early last month, income tax sleuths attached a number of shares of pivotals such as ACC, Reliance, Apollo Tyres, Castrol, ITC, Great Eastern Shipping, Mazda Leasing, Saw Pipes and Gujarat Ambuja Cement.
These shares have been found to be in the names of individuals and companies that acted as fronts for Mehta.
Although Mehta's companies have been under suspension at the Bombay stock exchange for the last 17 months, he has apparently been dealing on the exchange in a clandestine manner.
Having waited it out while the market plumbed the depths, Mehta sold off in May and early June when there was a temporary boom, and again after July 20.
His transactions were certainly voluminous. Brokers estimate the value of the scam-tainted shares delivered at a hefty 250 million rupees, with 140 million rupees going to Bombay-based brokers and 100 million rupees to those in Calcutta.