Oppn won't let probe into Adani market crash come up short

For Indians, the summer of 1992 will forever belong to a man called Harshad Mehta. Broker Harshad Mehta siphoned off around ₹1,000 crore from the banking system to buy stocks on the Bombay Stock Exchange. As he pumped in money, the markets continued to achieve new highs. Retail investors took cues from what Mehta was buying and followed in the footsteps of the 'Big Bull'. The scam came to light when State Bank of India reported a shortfall in government securities. That led to an investigation that later showed Mehta had manipulated around ₹3,500 crore in the system.

- ADITI PHADNIS

On August 6, 1992, after the scam was exposed, the markets crashed 72 per cent, leading to one of the biggest falls and a bearish phase that lasted two years. It was considered one of India's biggest stock market regulatory failures. At least one senior public servant, M J Pherwani, chairman of Unit Trust of India and National Housing Bank, killed himself as a result.

A market crash led by the fortunes of a prominent business house, following the report of a short-seller, is all that is common between then and now.