Harshad Mehta case: I-T dept to get Rs 1,995.66-cr dues

Keeping with an interim order passed by the Supreme Court in connection with the disbursement of funds of Harshad Mehta Group (HMG), the Bombay High Court has directed the custodian of assets of the dead stock broker to release Rs 1,995.66 crore to the Income Tax Department, to clear the dues.

The I-T department had moved the high court to claim its dues for the 10-month period when the securities scam perpetrated by the ‘Big Bull’ hit the market in 1991-92.

Justice D K Deshmukh, presiding over the Special Court (Trial of Offences relating to Transactions under Securities Act, 1992) on Friday ordered the amount be handed over from the funds of HMG, currently in the possession of a custodian appointed by the high court.

Mehta’s family members had approached the Supreme Court challenging the custodian’s possession of funds, saying certain properties were held in their name individually and was not part of HMG.

The apex court had on February 21, in an interim order, directed the high court to disburse the dues from the amount with the custodian. SC had however observed that if the order was reversed, the money would have to be returned.

The HC asked for an undertaking from the finance secretary promising to return the amount when asked by the court.