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.
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The Qur'an, Kannada Translation & Explanation is available @
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Dear Brothers,
These are nothing but so called salafi, Salaf means should follow the quran and sunnah according to the understand of the Sahaba, these are just following their own desires under the banner of salafi name. kindly change your organization name to somethingelse.
Brother Thanzeel what about your pant ?did you cut?it's above the ankle?first you did and scrue aothers,
U.N.Abdul Razak sir (President of SKSM Mangalore) For the sake of Allah Please cut your Pant its beyond your Ankle.
I did my duty obeying is your Wish.
Dear Abu Rimsha,
you can use Translated Quran in Kannada Meaning Version in Android Play Store Type PAVITHRA QURAN
Already there are kannada quran by other org like Shanthi prakashana, AS Puthige etc, if we are able to done coordinated work we can avoid duplication & use energy, time, money for different works.
Dear Abu Thabish IFF is working for community not like other group fighting each other .there are many group in salafi calling them kafir first stop saying other kafir. Allaha will see heart first . Salafi Built Many Mosque Near the other Mosque .there is no need built the Mosque still they Built the Mosque near other mosque in Many place .divided the Muslim .
No identity of islam except big beared.
Hope, they are muslim
YES BRO #5 AM MANGALORE,,,, PLEASE CONTACT MASJID IBRAHIM KHALEEL, NEAR STATE BANK MANGALORE.
Can anyone tell me, can i GET FREE COPIES of this BOOK?
There are many people without knowledge made enemy of ISLAM
There are many people without knowledge HATE ISLAM
There are many people without knowledge fall trap to enemies of ISLAM
What is ISLAM?
IS ISLAM encouraging Terrorism?
IS ISLAM enemy of other RELIGION?
Does MUSLIMS hate HINDUS?
An intelligent person will try to KNOW the reality and will not accept whatever is said in the MEDIA... It is easy for ENEMIES to SPREAD LIES & FOOL, when the PUBLIC accept whatever said to them... & not VERIFYING.
We MUSLIMS believe that QURAN is word of OUR CREATOR ALLAH, and his MESSAGE to all of his CREATION including NON MUSLIMS ... IT is YOUR choice to READ it, PONDER it, if not satisfied MAKE a research of it... If YOU still dont believe what is said in QURAN ... it upto U .. there is NO FORCE on YOU by the RELIGION of TRUTH, the only religion accepted by the CREATOR of all that exists.
THINK & PONDER.... Dont stay IDLE ...
Well said Mr. Abu Thabish, KSA.
Dear Karnataka Salafi Movement Concern,
Plz advise the Salafies translated Quran with Kannada meaning version in android Play store. Presently I am using Divya Quran by Shanti Prakashana.
Salaam
Masha Alaah...
Dear IFF, KCF Brothers
This is what we call Deeni Program. Helping the Society to achieve the Goal for Life after Death.
See the Beard See the Pant (Above the Ankle) This is the Actual Uniform of Islam.
Do not waste your Precious time..Learn Islaam before its too LATE.
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