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.
Comments
#17 THINKERS, Mangalore
Are you circumcising? Where it is in Quran. Hadith is manmade. Allah never gave quran to Muhammad. Angel gave quran to Muhammad. Angel is not almighty, limited in Power. Satan can overtake angel. Muhammad was caught by satan and the angel couldn’t stop satan delivering satanic verses. Your Allah didn’t interfere at the same time. Allah is from the 14th century. Where was allah before 14th century. Allah means in Hebrew Oak Tree. Allah means in Sanskrit Goddess. AlLat, Uzzah and Mannat three daughters of Allah Muhammad worshiped. Khayru al-makireena ! (S. 3:54; cf. 8:30) Allah is the greatest deceiver. In English translations purposely made it planner, scheduler instead of deceiver. Do Muhammad said in his own mouth I am the last prophet in the Quran. Show me from Uthman edited Quran. Do allah said worship me I am God. Allah never spoke to Muhammad in the Quran. Muhammad Hadith is the sayings of Muhammad. Muhammad was caught by the satatn and delivered satanic verses. Jesus defeated Satan, Jesus was sinless. Muhammad is a sinner asked forgiveness from Allah 70X7 times a day. Don’t follow a sinner’s Book. Jesus is truth and Light. Both the names are advocated to God Almighty. Jesus is coming again. Muhammad’s body rotted in the grave.
#17 THINKERS, Mangalore
Are you circumcising? Where in Quran. Hadith is man-made. Allah never gave quran to Muhammad. Angel gave quran to Muhammad. Angel is not almighty, limited in Power. Satan can overtake angel. Satan cannot overtake God. Allah is from the 14th century. Where was allah before 14th century. Allah means in Hebrew Oak Tree. Allah means in Sanskrit Goddess. AlLat, Uzzah and Mannat. Allah is a greatest deceiver khayru al-makireena)! S. 3:54; cf. 8:30 In English translations purposely made it planner, scheduler and deceiver. Do Muhammad said in his mouth I am the last prophet. Show me from Uthman edited Quran. Do allah said worship me I am God. Allah never spoke to Muhammad in the Quran. Muhammad Hadith is the sayings of Muhammad. Muhammad was caught by the satan and delivered satanic verses. Jesus defeated Satan, Jesus was sinless. Muhammad is a sinner asked forgiveness from Allah 70X7 times a day. Don’t follow a sinner’s Book. Jesus is truth and Light. Both the names are advocated to God Almighty. Jesus is coming again. Muhammad is rotting in the grave.
Dear Prem Prasad,
Sometimes when we learn from cheddi hinduism its not what hindu scriptures says.. similarly there are half baked knowledge in all community... Even if you are reading english translated QURAN.. Its ok. God helps those who look for him HONESTLY> never keep hatred. instead read QURAN to understand, GOD and his attributes ... Allah is all powerful and all knowing... He even knows what is inside your heart even if you are sitting in the DARKEST place on EARTH.. there are some lessons in the QURAN, if we use our intellect rightly... then WE have a lot in this LIFE other than hatred and Jealousy... Come prem...Look for QURAN honestly.
Please know that ALLAH created everything and he sent many prophets when people deviated and worshiped created things...JeSus pbuh was also a messenger of God. Muhammad pbuh is the final and last messenger of God...
Please check the bible where Jesus says worship me, Hindu scriptures says NA TASYA PRATIMA ASTI... there is no image of GOD ... But cheddis will drag U to worship their man made Gods.. anyway QURAN says Use your intellect, Verify what quran speaks... Think and think again and accept what it says...
TRY IT PREM.
#14 THINKERS, Mangalore
Do you still depend on Quran and Hadith which is a trash. III caliph uthman manipulated and edited it, destroying all originals. Muhammad was made to read 7 versions of the Quran and you have only one quran manipulated by the III caliph uthman. The editor of the Quran was wounded by muslims in the Mosque. He ran away to his house. He was killed in cold blood in his house. His quran was soaked in blood. 9/11 is nothing for Muslims. You killed editor of the Quran. What a sarcastic religion you are following. 110-220 and several other sects ahmadies, salafies and kulfies.
Talibans, al qaidah, al nusrah, lashkar toiba etc, etc., RSS is nothing before these Muslims beheader, killers and butchers.
#14 THINKERS, Mangalore
I read English Quran. Muslims said you should read Arabic Quran because allah is limited to Arabic and Mecca. 5 times performing Salat turning the face to Mecca is in Arabic all over the world. Who needs this Limited allah never knowing humans other languages. Read Sanathana Dharma holy book and the holy Bible of Jesus Christ. you will shun your 110 shia and 220 sunni divide.
Prem prasad,
The media has spent a lot to keep guys like U to think the opposite way... I can suggest U to read QURAN .. U will understand every query which is having in your mind. When U feel hatred towards Muslims. Atleast check Yaar what is written in QURAN (Muslim book)...
Dont depend on cheddi media (JNU twisted issue is one)..and zionist media(9/11) ... which has taken people like you as a playboy for them by keeping the masses in FALSE msgs (There are many videos which exposes their evil works)
Understand LIFE and thank God that someone is introducing YOU to the DIVINE knowledge which will benefit in your LIFE & Life after death.... The more Hatred U keep in your heart, it is like YOU are carrying a MOUNTAIN in your back... So, honestly I suggest U to look QURAN which mentions about the LIFE & DEATH and how evil controls those who are FAR from the TRUTH.
#12 THINKERS, Mangalore
Godse killed Gandhi and no more. Muslims stabbed whole India from the back and the wounds are not healed. Why the Muslims wear Nuns dress and carry out suicide bombs. Whole world knows who are the terrorists.
Syria, Iraq, Iran, Libya, Egypt,Sudan's Darfur and the world knows who are the terrorists - All Muslims support zionists.
Prem Prasad
Please ask the Cheddis WHY they dont wear nun's dress when they bomb and blame...
Come on Yaar, dont think we are stupids, whole india know who are bombers and who are innocent... We dont need to tell who is desh premi and who not... But Godse gang will definetely believe wat U say.
#10 THINKERS, Mangalore
You are not less than a Mohammad bin Tuglaq.
RSS are in self-defense.
Show one Christian Nun in full dress blown herself to kill terrorists and innocents in the name of Christianity.- You are bankrupt.
Prem prasad
Have u seen anyhwere in the media cheddis disguised as muslim planting the bombs and the authorities straight away blaming the muslims and FOOLS like U accepting such false newss...
Might be seen in zionist intelligence ...
#6 Rikaz, Mangalore
Have you seen anywhere in the world a fully covered nun carried out a suicide bombing.
The women is a show piece in the Christian land, Islam's Christianophoia. Who knows she plants bombs anywhere she is willing.
when nuns wear burka and go in flight....no issue at all...its hypocrisy...
Quran never say wear burqa, cover fully top to bottom. Hadith is man made.
She wants to switch seat. She is uncomfortable with the co-passenger.
Abdulle is from a Somalian dissent. Cover picture shows white from M.E. All deceptions.
USA is not taking excuses like France and Belgium. Good that the women is thrown out from the plane – safety first.
shame on USA, the so called liberator and democracy protector......
Divine teaching says it is better for YOU to wear your HIJAB...
People with lustful desires alwz oppose such divine teachings... forgetting that they will face their CREATOR one day. It is cos of the MERCY of ALLAH that U escape now... But he will take care of such trouble makers on its prescribed time.. Until then U enjoy your devilish acts... which will have an end and that end will be very severe .... Look how Pharoah was ruling over the people but in the end he has nothing...
QURAN speaks about the LIFE in this earth and how ALLAH bring back the LIFE after death to justify that has happened in this life.. The same way HE gave us life in the first place
It has created problems around the globe such as Iraq, Siria, Egypt, Libiya etc...now they want to live peacefully by evacuating Muslims from flight and country, if you see president nominate Donald Trump's speech where he does not want Muslims to enter US....
For the second time same airlines committed this hate crime in a month
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