SBI, others to get Rs 650cr from Harshad Mehta asset liquidation

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

The Special Court, Mumbai, has ordered the Custodian, appointed by the government to deal withthe 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.

Source: Financial Express