For many Indian tycoons, 2019 turned woeful as lenders -- empowered by the nation’s recent bankruptcy law and desperate to clean up soured debt from their books -- started seizing assets of delinquent firms or dragged them into insolvency.
Indian banks wrote off a record $39 billion of loans in the 18 months through September in a bid to repair their balance sheets as they battled the world’s worst bad debt pile. Making matters worse, a shadow banking crisis led to a funding squeeze, crushing debt-laden businesses that were critically dependent on rollover financing.
“Life has come a full circle for tycoons that had enjoyed debt-fueled growth,” said Nirmal Gangwal, founder of distress and debt restructuring advisory firm Brescon & Allied Partners LLP. “Many firms collapsed like a house of cards. The downfall was rather unprecedented.”
The government has also been cracking down on economic crime to assuage public anger over absconding businessmen. It’s even barred some from traveling overseas if they were deemed a flight risk.
Here are some of the country’s biggest and most-storied businessmen who saw their fortunes fade. Spokespersons for none of these tycoons, except Essar, immediately replied to emails and text messages seeking comments.
Anil Ambani
The chairman of Reliance Group, which makes movies to metro lines, had a close shave with jail time in March before his elder brother and Asia’s richest man, Mukesh Ambani, bailed him out at the last minute. The woes of the ex-billionaire came to the fore when India’s top court asked him to pay Ericsson AB’s India unit about $77 million of past dues or go to jail since Anil Ambani, 60, had given a personal guarantee. His telecom carrier slipped into insolvency this year, while unprofitable Reliance Naval & Engineering Ltd. faced a cash crunch. Reliance Capital Ltd. is selling assets to pare debt. Ambani is also fending off Chinese lenders in a London court.
Malvinder & Shivinder Singh
Karma caught up with ex-billionaires and brothers Malvinder Singh, 47, and Shivinder Singh, 44, and how. Scions of a prominent business family, they once helmed India’s top drug maker and second-largest hospital chain. In October, the two were arrested on charges of fraudulently diverting nearly $337 million from a lender they controlled. India’s market regulator found in 2018 that the brothers had defrauded their hospital company of about $56 million. The collapse of the $2 billion empire turned brother against brother, prompting their mother to broker a peace deal that was short-lived. In February, Malvinder accused Shivinder and their spiritual guru of fraud.
Shashikant & Ravikant Ruia
After a hard-fought battle to keep their flagship steel mill, the first-generation entrepreneurs finally saw the bankrupt Essar Steel India Ltd. pass on to ArcelorMittal last month. The $5.9 billion takeover was almost two years in the making with multiple legal wrangles. The group, controlled by Shashikant Ruia, 76, and Ravikant Ruia, 70, were also reprimanded by a U.K. judge in March this year for concealing documents. Started in 1969 as a construction firm, Essar Group diversified, investing about $18 billion between 2008 and 2012, and piled on debt. In 2017, the group had sold another prized asset, Essar Oil.
Selling an asset to pare a liability shouldn’t be seen as a “lost asset,” an Essar spokesman said, adding that the group remains a diversified conglomerate.
VG Siddhartha
Before jumping off a bridge into a river in July in an apparent suicide, the founder of India’s biggest coffee chain Cafe Coffee Day had penned a letter that spoke of pressure from lenders, a private equity firm and harassment by tax officials. He had spent much of the last two years pledging ever more of Coffee Day Enterprises Ltd. shares to refinance loans for ever shorter periods, at ever higher interest rates. “I would like to say I gave it my all,” V.G. Siddhartha, 60, wrote in the letter. “I fought for a long time but today I gave up.”
Naresh Goyal
The former ticketing agent who built India’s largest airline by value, stepped down as chairman of Jet Airways India Ltd. in March, caving in to pressure from banks who took over the company. Cut-throat price wars and surging costs pushed Jet deeper into loss. The airline stopped flying in April and went into bankruptcy two months later as lenders failed to find a buyer. In July, an Indian court barred Naresh Goyal from flying overseas after the government said it was investigating an alleged $2.6 billion fraud involving Jet Airways.
Rana Kapoor
The founder of Yes Bank Ltd., which became India’s fourth-largest non-state lender, tweeted in September 2018 that his shares were invaluable and requested his children never to sell them upon inheritance. But trouble was brewing. The nation’s banking regulator, which found the lender had repeatedly under-reported its bad loans, refused to extend his tenure as chief executive officer. This forced Rana Kapoor, 62, to step down by end-January. Kapoor, who has pledged some of his Yes Bank shares in July, sold almost his entire stake in the lender by October.
Subhash Chandra
The rice trader-turned-media mogul, 69, who brought cable television into Indian homes in the early 1990s with his ZEE TV, resigned as chairman of Zee Entertainment Enterprises Ltd. in November and lost control of his crown jewel. Subhash Chandra has been selling stake in Zee Entertainment in the past few months to repay group’s debt.
Gautam Thapar
A default by Gautam Thapar, founder of the paper mill-to-power transmission Avantha Group, on pledged shares made Yes Bank Ltd. the biggest shareholder in CG Power and Industrial Solutions Ltd. In August, the firm was hit by an accounting scandal forcing the board to remove Thapar, 59, from the chairman’s post. A month later, the market regulator ordered a forensic audit of the firm and barred Thapar from accessing securities market.
In its bilingual invitation card for the November 4 event to be held at Indian Social and Cultural Centre in Abu Dhabi, the Sangha has described Sulibele as anationalist thinker' andgreat orator'. According to organisers, NRI tycoon B R Shetty will preside over the event. On the same occasion sculptor and writer B K Ganesh Rai will be conferred with Da Ra Bendra award.
Comments
While you are in India, you enjoy all sorts of privileges and when you are in UAE, it suddenly becomes communal! Come on, guys, have the courage to face some criticism too; don't just run away from reality; you are getting a taste of your own medicine; who is spewing venom, who's anti national you will know when you invite people like Owaisi Brothers, the vote bank politicians like Didi, Behenji, MS and the like! I guess, you would welcome Pappu to do national justice!
UAE authorities must look into the links they have with these outfits. Somewhere Karnataka sangha Abu Dhabi supporting these hate mongers under the sheild of community organization.
Authorities should make sure these Sangha members are not acting as agents of this dangerous outfits in UAE.
Dear Rasheed...
Many of the non muslims learn islam from islam-haters..which is completely opposite way of the real teachings of ISLAM... its easy for them to divert from the TRUTH cos of their IGNORANCE.
Me and YOU as a Muslim should convey the real basic teaching of ISLAM rather than keeping quiet and letting them to continue their hatred towards the religion of PEACE..
ALLAH controls the heart, We should learn on How Umar RA who was staunch enemy of Prophet accepted ISLAM when the TRUTH was presented by a Muslim.... Until then he was hating ISLAM just thinking what was presented to him by the haters of that time and wanted to attack the prophet pbuh...
TRUTH will Prevail... Dont Judge a person they will not accept the TRUTH...
During the Month of February (SJM) in association with (SEDC) in Mangalore Town Hall conducted a symposium on ‘Madrasa system in secular society’. They invited Yuva Brigade leader Chakravarty Sulibele, who is a popular Kannada orator among Sangh Parivar, he said that the rapid growth in Muslim population around the globe in last few decades was not strengthening the community but making the community poor and weak.
However the population could not be a reason for increasing poverty. “While renowned economists like Amartya Sen talk about how population can be used as a resource for the development of the country, vested interests blame people or population for the failure of governments”.
Stating that there is a need to end misconceptions among people about Islam and its madrasa system, madrasas in India produced thousands of freedom fighters and not terrorists. “Even today madrasa advocates patriotism,” and recent years we see most of Madrasa and Mosque hoisting National flag during National days like Independence day and Republic days, however we can’t see National flag in so called Nationalist Organization RSS headquarters or any Sangh organization.
One must understand the fact that Soolibele and his team will not rest until India become Hindurastra. The so-called secular people in Karnataka Sangh Abu Dhabi make any adjustment with RSS ideology but they won't change their mind-set. each and every opportunity what you provide for them they will make it as a weapon to criticize in other stage. I can understand the intention of the organiser but the outcome will be negative impact on secular NRI Kannadigas, therefore all the like minded people should stand together to defeat the intention of internal organizers.
All these things are happening here in result of recently RSS chief held a series of closed-door meetings in Thanthra Vidya Peettham at Aluva near Kochi in Kerala with prominent NRI businessmen seeking their cooperation in expanding the organisation and strengthening its activities gulf countries.
#19 Mr Weak Up Mangalore,
May be you r Sleeping , All this RSS Chaddis Research Islam and Study Well becouse only how they can Impiment Anti Islam theory.
Mr Weakup Dont give Dawa like this RSS (Quraan-2,7) , If want to Give Dawa you have good platforme has waiting India.
Thats way they use Like you and Sayed Shanawaz, Hussain,Muqthar Naqvi Abbas and Raheem Uchil in Mangalore.
It looks like Kannada Sangha is a face of RSS. The both invitees are RSS. Dr. Shetty is also a strong RSS man but a big businessman. As par as Mr. Solibele, he is well known anti Muslim RSS youth leader. That is not a big matter. But he was supported and went along to jail to welcome a murderer last month. That too an innocent Hindu RTI activist was killed . Do you need such a Kalanka Man to talk in your Organizations function??? What kind of talk , advise we can expect from such a communal person.
Keep Karnataka Sangha away from all these politics and run the organization with the love and unity with the all religion NRI's who are staying like a brothers in Gulf countries. Don't bring poison from India to our Indian society in the gulf.
Thank God they cancelled his trip.it is purely because of high pressure put by various organizations,community leaders and individuals. I salute them for their brave act of unity.
We Indians in U.A.E. are living in a very brotherly and harmonies way of life.And what made Mr. Shetty and his team to invite a man who claimed he and Bajrarangdal -born to burn Masjid,Church and Muslims.
Karnataka Sangha, Abu Dhabi is biased against certain segment of the society ,and show is run by it's president and his bunch of crony supporters.
And just to eye wash the Kannadiga's they put two of their\ chelas\"( \"houdu basavanna,alla basavaan type\" ) as representatives from Muslim community.
I have seen these 2 Muslim members name in the invitation,shame on them. They should have opposed this move from the day one,but why they kept quiet.?It is shame that they failed to to ensure the brotherly relationships or afraid of President!
Better they come out of this evil Sangha, and be with the Larger Ummaha.
Me being a Kannadiga- very uncomfortable and disappointed by such continually biased act of Karnataka Sangha against Muslims
Hope good will prevail !"
Roshan
Thanks for your comments and your message says that u compare sulibele with Hafeez Saeed and baghdadi hahahaha.
UNISLAMIC CULTURE......SHAME ON SO CALLED MUSLIMS
Kannada sangha is noting but the part of RSS and the main aim of this is to raise funds for RSS.
Sulibele is a great Thinker of RSS. He is a anti National.
Hahahah . If karnataka sangha invites Hafeez Saeed or Abu Bhakar Al Bagdadi...may be some of our so called peace people will be much happier today...Dr.B.R.Shetty Please think about it.
Guys with no job will always see a free chance to go anywhere.. whether its a MUSLIM country or non MUSLIMS.. If he has a shame in his skin he will never go to ANY MUSLIM country due to his mindset and preaching.. lol how funny this man.. Giving speech against MUSLIMS and going to eat MUSLIMS food.. hahaha funny man.. suleybilli..
As Mr. Abdul basith said... \His world is sangh parivar...\"
Let him come and see what is the world outside of SP...
There are many who changed their mind when they really interacted with the Muslims ...
It is easy to the cheddis to create hate mongers by showing them only doctored clips and LIES...
Muslims should invite him also and explain what is ISLAM and its teachings...
Cos cheddis have filled their software from very young with hate of islam and humanity.
God has given intellect ... When we grow up we should use our intellect to know if ISLAM really hates non muslims or Not...? Dont be a SLAVE of the cheddi software...
For Grown up cheddi members use your intellect and try to learn what islam says... or U will be in DARKNESS of the REALITY of who is the enemy of humanity."
This is a conspiracy of RSS to spread its hate monger idealogy among Kannadigas working in the gulf states. So far all working here without any differences. So they want to spread this divide and rule policy among NRIs too. Muslim countries do not understand this. These kind of hate mongers, who is not allowing citizens of india to live peacefully, should not be entertained. He should be stopped at all means. Please bring this to the authorities of UAE.
In future be careful about these kind of sanghas in all over the Gulf Countries. This Kannada sangha now show their real face. They are working for RSS its clear now. We should be more careful about BRS also..They may now favouring to Modi...All Like minded people should understand this points in future.
there is no good leaders or good person to Invite, Sulibele was Available as Free of Cost so he agreed to it!!!, y all this controversy
Its proven what Kannada sangha actual doing in Gulf countries
Sulibele proudly claimed that bajarangdal was born to burn masjid & church at a program in Manglore. then how kannadiga sangha calling him as a nationalist, it's wondering jok to call him a nationalist. he wants to destroy the peace in society. Thanks CD for publishing the timely report & heartily thanking all UAE NRI kannadigasa united for showing their secularism.
RSS wing at Abu Dhabi. being in a Muslim country how could you guys think of inviting an RSS backed Muslim hater. I think government official of UAE should intervene and ban him from entering the Emirates.
All these Kannada Sangha is a proxy for RSS in M.E
Interestingly some beary leaders also committee members of Karnataka Sangha.
Thanks CD for this timely report.
In fact every one Knows about Chkravarthi Sulibele.
Why did Karnataka Sanga plan to Bring Him for Rajyotsava prongram?
He is a communal leader and they want to Build good reputation for him in UAE. that's Why they planned to depict him as public figure.
#7 Vidya, nice jokes. You guys also using same theme against CNN IBN, NDTV, Times Of India and other secular media. Now coastaldigest which is trusted media.
69% people know who is right, better and best. No need to learn from 31% fools.
Extremely partial and provocative report by Ankita Ferrao, who is known as a 'Hindu-baiter' among journalists circle. Coastaldigest.com will lose its credibility if it continues to publish this kind of shit.
Muslims in Mangalore also accept the fact that Sulibele Sir is a great orator. A Muslim group had invited him to give lecture on Madrasa. Why can't we invite him? Thum Kare Tho Chamatkar, hum Kare tho balatkar?
Now it is 100% clear the rss chaddi planning to insurt their nose in respective NRIs cultral actuvites. will not allow them to suceed in communal agenda. This is the double game of Mr Shetty. He is also a sanghi rss member now helping rss to create communal tension n to spoil our great Kannadiga unity out side India. Suggest to call UAE local leaders or any rulers family. Last month for one of hindu religious program organizers invited UAE ruling family member.
Let him come and see how Muslim country encouraging non Muslims to do business and flourish....unlike India....
Some organisation should be take this up to higher UAE authority with detailed information about Sulibele.
Online campaign, through Twitter or other social media should inform UAE authority before too late or before terrorise UAE Indians.
Sulibele will be lead to civil war between Indian communities in UAE if they allow him.
Lol.. why is he going to Muslim nation?
Kannada sangha is might be RSS's wing in Gulf country and they hold Shakhas throughout UAE on the mask of Kannada Sangha.
Sulibele is no. 2 feku and spreading hatred towards community.
Add new comment