SBI, others get Rs 650 crore from Harshad Mehta asset liquidation

September 13, 2011 06:09 pm | Updated 06:10 pm IST - New Delhi

State Bank of India, the Income Tax Department, SBI Caps and Standard Chartered will get Rs 650 crore from the liquidated assets of Harshad Mehta entities.

The Special Court, Mumbai, has ordered the Custodian, appointed by the government to deal with the securities scam of 1992, to release Rs 650 crore.

Of the total amount of Rs 650 crore, Rs 259.65 crore would be given to State Bank of India, Rs 28.34 crore would be given to the I-T department and Rs 16.25 crore to SBI Caps, a finance ministry statement said.

Further, the Court has ordered the release of Rs 345.76 crore to the Standard Chartered bank, subject to certain conditions.

The assets, liquidated by the Custodian, and made available for distribution, comprise shares and immovable properties, apart from cash and fixed deposits.

Earlier in March, Satish Loomba, Custodian (Trial of Offences Relating to Transactions in Securities) had distributed about Rs 2,200 crore to the income tax authorities and State Bank of India.

Mehta, a stock broker, was the mastermind of the stock market scam of 1992 that dupes lakhs of investors across the country. The scam exposed a strong nexus among the sharemarket, banks and financial institutions.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.