Arms training camp: Absconding PFI activist finally arrested by NIA

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.

New Delhi, Feb 17: The Congress high command is likely to announce the party’s key troubleshooter in Karnataka, DK Shivakumar as the next state unit president with MB Patil as the working president, according to party leaders who spoke on condition of anonymity, in what could be a delicate balancing act between competing caste claims in the state..

Former CM S Siddaramaiah is likely to continue as the Congress Legislature Party leader, the leaders added.

The KPCC presidentship has been vacant ever since the incumbent Dinesh Gundu Rao resigned following the defeat in the bypolls, in which the ruling Bhartiya Janata Party (BJP) won 12 of the 15 seats, ensuring a majority for itself in the state assembly.

The state leadership issue became contentious following that, with Shivakumar, a Vokkaliga, lobbying to ensure that his role as party’s main go-to man during difficult times be rewarded, the leaders cited above said. Patil, a former home minister and a Lingayat leader, was the favoured choice of Siddaramaiah, they added.

A former minister in the Siddaramiah cabinet told HT on condition of anonymity the appointment was now “just a formality”.

“How long could the current uncertainty continue? Shivakumar is a go-getter who can also help generate funds for the party. For instance, on the Bidar school sedition issue, we were late and started an agitation only after the accused got bail. With Shivakumar at the helm, we will be more aggressive and able to put the BJP government on a mat by highlighting all their omissions and commissions,” the former minister added.

The decision to appoint Shivakumar -- a seven-term MLA who served in the cabinets of former CMs S Bangarappa, SM Krishna, Siddaramiah and HD Kumaraswamy -- is likely to be a controversial one. He faces ongoing income tax and Enforcement Directorate (ED) probes, is currently on bail after being jailed by the ED in a money laundering case. He

In his 2018 poll affidavit, Shivakumar declared assets worth Rs 840 crore, making him one of the richest politicians in the state. His brother DK Suresh is a two term parliamentarian and is the sitting MP from the Bangalore Rural constituency.

Shivakumar’s latest move to build the world’s largest Christ statue in his constituency in Kanakapura has also come in for severe attack from Sangh Parivar outfits, who claim the land he donated was government-owned and illegally usurped by him.

Political analyst Manjunath said that Shivakumar, if appointed, is likely to inject a great degree of dynamism into the functioning of the party.

“He sees himself as a future Chief Minister and is very ambitious. If the appointments are confirmed, it will only vindicate the fact that the party high command has tried to balance caste interests by having a Vokkilga, a Lingayat and a Kuruba – the three leading castes in the state - heading different parts of the party. Also since the BJP is making a concerted effort to break into the Vokkaliga votebank, nominating Shivakumar would be a smart move to consolidate the community behind the party,” he said.

Mangaluru, Apr 6: Taking note of the communally hateful messages, news and pictures in the wake of coronavirus, Dakshina Kannada Superintendent of Police (SP) Laxmi Prasad on Monday issued strict warning to people spreading such messages and news on local social media platforms.

The SP also confirmed that four cases under his jurisdiction have been registered for sending, forwarding messages with communal hate in the wake of coronavirus on Facebook, WhatsApp and other social media platforms.

He added the police department will not take any such messages, news, and images lightly which can potentially hurt the sentiments of the people of any community. He also added that those found guilty will be prosecuted under strict law and their gadgets, mobiles will be seized by the department.