Money & Banking

Harshad Mehta scam: Banks, financial institutions may get Rs 800–1,000 cr more

Our Bureau Mumbai | Updated on May 12, 2011

Banks and financial institutions, which are the creditors of the Harshad Mehta Group, are likely to get additional Rs 800-1,000 crore, following the Supreme Court order on May 6, according to a press release from Press Information Bureau.

The Supreme Court, last week, dismissed the appeals by the mother and sister-in-law of the late Harshad Mehta, against the order of the Special Court and upheld the notifications by the Custodian, for their involvement in the securities scam of 1992.

The Custodian (Trial of Offences Relating to Transactions in Securities), Ministry of Finance, is likely to be liquidate and distribute assets such shares and immovable properties, apart from cash and fixed deposits.

With this additional amount, nearly all the principal liabilities of the Harshad Mehta Group towards taxes, banks and financial institutions are expected to be met, the release said.

In March this year, Mr Satish Loomba, Custodian, had distributed an amount of about Rs 2,200 crore, to the Income Tax authorities and the State Bank of India.

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Published on May 12, 2011
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