Jain couple to leave minor daughter, Rs 100-cr property for monkhood

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.

Chikkamagaluru, Feb 19: A 31-year-old homemaker was murdered and valuables, including 100gm of gold and 2kg of silver, were reported missing from her house in Kadur town of Chikkamagaluru district late Monday evening. Her 11-month-old son, who was with her at the time of the attack, had a miraculous escape.

Police said Kavita's husband Dr Revath was away in his clinic in the town's Kadur-Birur road along with their first son, 5. Kavita, who has done MA and from Udupi, and the dentist married seven years ago.

District superintendent of police Harish Pandey has formed a special team to probe the incident that took place in Lakshmish Nagar in the town.

According to police, Kavita spoke to her husband around 6.45pm on Monday and didn't answer his subsequent calls, triggering a strong suspicion in him that something was amiss. He called his relatives living nearby to check on his wife. The relatives rushed to the house only to find the main door locked.

Since Kavita didn't answer the doorbell, they force-entered the house from the rear door and found her in a pool of blood. She was taken to a private clinic where doctors declared her brought dead.

Police said the woman was killed by a sharp weapon by slitting her throat between 6.45pm and 8.15pm. The rooms and almirahs had been found ransacked. At least 100gm gold ornaments, 2kg of silver and cash were missing from the house.

Bengaluru, Jun 19: COVID-19 cases in Karnataka has breached the 8,000 mark, as the state on Friday reported 337 new cases and ten related fatalities, taking the total number of infections to 8,281 and death toll to 124.

Also, total discharges in the state breached 5,000 mark, with 230 patients getting discharged in a day after recovery.

As of June 19 evening, cumulatively 8,281 COVID-19 positive cases have been confirmed in the state, which includes 124 deaths and 5,210 discharges, the health department said in its bulletin.

It said out of 2,943 active cases, 2,865 patients are in isolation at designated hospitals and are stable, while 78 are in ICU.

The ten dead include- seven from Bengaluru urban, two from Bidar and one from Vijayapura.

Out of the 337 new cases, 93 are returnees from other states, majority of them from neighboring Maharashtra,while 11 are those who returned from other countries.

The remaining cases include contacts of patients earlier tested positive, those with history of SARI and ILI, among others.

Among the districts where the new cases were reported, Bengaluru accounted for 138 cases, followed by Kalaburagi 52, Ballari 37, Hassan 18, Dakshina Kannada 13, Davangere 12, Udupi 11; Bidar 10, six each from Mysuru and Koppal, four each from Yadgir, Kolar and Bengaluru rural, three each from Mandya, Dharwad, Chikkaballapura, Bagalkote and Ramanagara, two each from Tumakuru and Chikkamagaluru, and one each from Belagavi, Uttara Kannada and Shivamogga.

Kalaburagi district tops the list of positive cases, with 1,126 infections, followed by Udupi 1,050 and Bengaluru urban 982.

Among discharges Udupi tops the list with 944 discharges, followed by Kalaburagi 646 and Yadgir 477.

A total of 4,84,060 samples were tested so far, out of which 10,553 were tested on Thursday alone.

According to the bulletin,4,64,338 samples have been reported as negative, and out of them 9,862 were reported negative today.