Multiple choice general knowledge

Which Indian Union Minister resigned in the wake of the Harshad Mehta scam?

  1. Manmohan Singh

  2. Devi Lal

  3. Karunakaran

  4. PA Chidambaram

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

P. Chidambaram resigned as Minister of State for Finance in 1992 following the Harshad Mehta securities scam that exposed irregularities in the Indian banking system. The scam involved manipulation of stock prices and revealed weaknesses in financial regulations. Manmohan Singh, Devi Lal, and Karunakaran were not associated with this resignation.

AI explanation

To answer this question, we need to understand the context of the Harshad Mehta scam and the role of the Indian Union Ministers during that time.

The Harshad Mehta scam was a major financial scandal that took place in India in the early 1990s. Harshad Mehta, a stockbroker, manipulated the stock market using a technique called "pump and dump" and defrauded several banks and financial institutions of crores of rupees.

During the investigation of the scam, it was revealed that some politicians and high-ranking officials were involved in the scam or had connections with Harshad Mehta. As a result, there was significant political pressure on the government to take action against those involved.

In this context, the correct answer is:

Option D) PA Chidambaram - This option is correct because PA Chidambaram, who was the Union Minister of State for Commerce and later the Union Minister of State for Personnel, Public Grievances, and Pensions in the Government of India, resigned in the wake of the Harshad Mehta scam. He was accused of having close connections with Harshad Mehta and allegedly using his influence to benefit him.

It is important to note that the other options mentioned in the question are incorrect:

Option A) Manmohan Singh - This option is incorrect because Manmohan Singh was the Finance Minister of India during the time of the Harshad Mehta scam and he did not resign in relation to the scam.

Option B) Devi Lal - This option is incorrect because Devi Lal was a prominent Indian politician who served as the Deputy Prime Minister of India, but he was not directly involved in the Harshad Mehta scam and did not resign due to it.

Option C) Karunakaran - This option is incorrect because Karunakaran, who was a senior politician from Kerala, was not directly involved in the Harshad Mehta scam and did not resign due to it.

Therefore, the correct answer is Option D) PA Chidambaram.