Big Bull Harshad Mehta his family members and companies controlled by them together operated no less than 62 accounts of different categories with various branches of the ANZ Grindlays Bank in Bombay Delhi Madras and Calcutta.
The broker apparently had a preference for Grindlays for he and his associates opened accounts in only four other banks: Union Bank of India (six accounts) American Express (four accounts) and one account each in Corporation Bank and Indian Overseas Bank.
Executives of Grindlays Bank are scheduled to depose before the JPC on Nov.4
While the list of banks to which questionnaires were sent includes various foreign banks including Grindlays and American Express it surprisingly ignores three major players namely Citibank Bank of America and Standard Chartered Bank.
The reply submitted to the JPC by Grindlays revealed that the Harshad Mehta group had 39 current accounts with the bank and 23 “facility” accounts The deposit balance in the current accounts aggregated Rs 7.24 crores as on May 15 when all the accounts were frozen on May 15. In the facility accounts against a total limit of Rs 55.97 lakh the balance outstanding stood as Rs 24.82 lakh.
In Bombay the Mehta group maintained as many as 27 current accounts in the Mahatma Gandhi Road branch of Grindlays and two at the Dadabhal Naoroji Road branch.
Further the group maintained an account with the banks Netaji Subhash Road branch in Calcutta and had five accounts in the Sansad Narg branch in Delhi.
In Madras the Mehta group maintained two accounts each at the Adayar and Mount Road branches.
The accounts were opened in individual names in the names of proprietary concerns and under Hindu Undivided Family (HUF) entities Besides accounts were opened in the names of group companies like Grow more Research & Assets Management Grow more Leasing & Investments Mazda Industries & Leasing Mazda Packaging Pallavi Holdings Treasure Holdings Velvet Holdings Topaz Holdings Eminent Holdings Divine Holdings Zest Holdings Sunrise Enterprises Attur Holdings etc.
Interestingly only at the Grindlays branches at Madras (that too only in facility accounts) did the Mehta family members place shares of different companies as assets.
Article extracted from this publication >> November 13, 1992
