Udupi: Sri Krishna Mutt to host Zakir Hussain’s concert

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.

Bengaluru, Jan 8: The Karnataka government on Tuesday decided to adopt a no-fail approach for Class 7 examinations for government and private schools following the state syllabus.

The report card of a student doesn’t carry ‘pass’ or ‘fail’ remark, but points to his or her strengths and weaknesses in each subject in the exams, which will now be called Common Evaluation Exam.

The quality cell of the Karnataka Secondary Education Examination Board (which conducts SSLC exams) will prepare question papers, which will be evaluated at the district level by government and private schoolteachers. The Class 7 exams will be held in March.

The Common Evaluation Exam follows the Continuous Comprehensive Evaluation (CCE) currently practised under the Right to Education Act. “The formative and summative assessments (tests, projects and quizzes) will be held as usual,”KG Jagadeesha, commissioner of public instruction, said.

Edu dept to launch helpline by March

For the March exam, summative assessment 2 will be held with half the syllabus. Other modalities (exam duration and total marks) will be announced next week,” said KG Jagadeesha. The CCE system will continue for classes 8 and 9. The government hopes the exam and subsequent interventions in classes 8 and 9 will boost students’ confidence for crucial board examinations.

Minister S Suresh Kumar said, “More than an exam, it’s an evaluation of a child’s knowledge. The Belagavi division has done something similar. The Kalaburagi zone found mathematics and science were areas of concern; language was an issue in Urdumedium schools.” The minister said zilla panchayat CEOs have observed that intervention should start from class 8. “Keeping this in mind, we’ve started necessary preparation for class 7 exam ,” he added.

The education department will start a helpline by March for students, teachers, school managements and educationists to 11 raise problems on day-to-day issues.

Bengaluru, Jun 7: A mobile app and a portal offering technology-driven solutions to manage and mitigate floods in urban areas were launched here on Saturday by Karnataka Revenue Minister R Ashoka.

The mobile app 'Bengaluru Megha Sandesha' was developed to disseminate information on rainfall and flood forecast, location-specific dynamic weather directly to the public. "The in-built features of the app and the information provided for a city is the first of its kind in the country," a press release said. This is a system of providing rainfall, flood forecasts and early warning to the officials of government agencies in the city through SMS to their mobile phones, social media platforms and a dedicated web portal, the release said.

The information provided would help the civic authorities act in advance and manage the floods, it said. The portal 'Varunamitra' is for information on the weather. The information provided is based on real-time data from 100 telemetric rain gauges installed and maintained at various locations across the state, it said. Rainfall forecast is based on the weather research and forecast models developed by the Indian Space Research Organisation (ISRO), Ahmedabad, the release said.

The information on flood forecast is based on the hydrological model, hydraulic routing and automation of the results. The Karnataka State Natural Disaster Monitoring Centre, along with the Indian Institute of Science (IISc), took up this project on the urban flood model for Bengaluru city. The project was funded by the Central government's department of science and technology, the release added.