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
I hail from a traditional Brahmin family in Karnataka. My entire family was part of RSS. I was also an RSS Karyakartha. The only aim of our lives was to demolish Babri mosque and build ram mandir. (I don’t know what is their aim today because I am no more in touch with them). Today I am a Muslim. Alhamdulillah. Years ago I embraced Islam. Though Muslim society in general has no role in my conversion to Islam, I was really impressed by some Muslim friends, their character, their language etc. However, in recent years I am observing a change in the attitude of many Muslims. They are adopting the tactics and language of Sangh Parivar. They love to abuse and mock others. They can go to any extent to justify their crimes. To be frank such Muslims are working as a great wall between Islam and non-Muslims. The number of such arrogant and uncultured people is very small in Muslim community. However their presence in social media is very strong. It’s high time such Muslims change their attitude and realise that their real responsibility. Those who resort to foul language and post provocative comments have no moral right to fight Snagh Pariavar because they are also doing the work of Sangh Parivar despite being in Muslim community. Let me also remind those hardliners that the biggest jihad for a true muslim will be against his own nafs, not against any parivar.
Imapartial?! Good joke bro. What CD did ? just hided the acts of RSS and highlighted SDPI here, shame to joiurnalism!! This is called Pimp Journalism, not impartial, understand it.
Some of the comments here show how intolerant people they are. One person is calling a murder victim a terrorist. Then what about murderers? I think the one who wrote comment in Kannada is a member of Boko Haram.
Why you people are targeting SDPI if they make wrong they will get but what about RSS , when they killed humanitarian & make problem for Innocent People why you people are not open your Heart & talk againts RSS.
Why you people are targeting SDPI if they make wrong they will get but what about RSS , when they killed humanitarian & make proble for innocent people why you people are not open you Heart 7 talk.
What do you mean by that? SO you are uneducated dumb fellow ? U dint study in Madrasa? U know what people will learn in Madrasa> what rubbish ? You are the agents of RSS goons? shame on you to use such words on Madrasa?
I dont find anything wrong in that reply. words might be fouls. But its nothing in front of the Pimp journalism you used to blame SDPI, Dont u have shame guys?
Why you are linking Islam to those who killed somebody? thats just killers, consider them as Killers only, but not Islam. shame on you to use such words like sanghis to blame Islam.. You are the one who is in CDs Manuvadi "Bhat"? Because only such people can aser like this.. Shame on you
CD should not publish these kind of comments. They are uneducated and biased people. In Islam does not teach to kill someone from any religion. They are trying to give bad name to Islam, which they cannot.
Dear SDPI Fan,
SDPI or PFI is doing very good job in Saudi Arabia. They are doing social work for the needy people for all the religion, which is commendable. Nevertheless, in India some people are doing totally revers and against Islamic activities in the name of SDPI.
Thanks for the impartial report. That’s why we love CD. Don’t fear anyone. And don’t care the foul mouthed people. Prophet Muhammad (s) has declared that foul mouthed people are munafiqs.
I would like to meet the parents of the SDPI fan who wrote a comment in Kannada here and ask them how do they bring up children. So far I thought that only Sangh Parivar’s social media army can use such an ugly, cheap and unhygienic language. Now I am convinced that there is no religion party for foul-mouthed urchins.
He is definetly not a madrasa product. He must be a bus stand toilet product. From the beginning to end he has written only shit. I think he is an expert in writing comments on toilet walls in bus stands and trains. God knows whether parents teach them basic manners or not.
Dear SDPI fan. Your anger is on CD! Then why are you murdering Kannada language?
Very nice language..! I think you must be a Madrasa product! Kindly let me know in which Madrasa you studied all these glorious Islamic words?
ಸಂಘಿಗಳ ಪೋಸ್ಟ್ ಕಾರ್ಡಿಗೆ ಸಡ್ಡುಹೊಡೆದ ಶಿಖಂಡಿ "ಕೋಸ್ಟಲ್ ಡೈಜೆಸ್ಟ್"!!
ಮಾನಗೇಡಿ ಕೋಸ್ಟಲ್ ಡೈಜೆಸ್ಟ್ ಎಂಬ ನಾಮರ್ಧರ ಜಾಲ ತಾಣವೊಂದು ಕೇರಳದ ಆರೆಸ್ಸೆಸ್ ಭಯೋತ್ಪಾದಕನೊಬ್ಬ ಜನವರಿ ಮೊದಲ ವಾರದಲ್ಲಿ ಅಯ್ಯೂಬ್ ಎನ್ನುವ ಬಸ್ ಡ್ರೈವರ್ ಒಬ್ಬನನ್ನು ವಿದ್ಯಾರ್ಥಿಗಳ ಮುಂದೆಯೇ ಎಳೆದು ಹಾಕಿ ಎರಡು ಕೈ ಹಾಗೂ ಕಾಲನ್ನು ಕತ್ತರಿಸಿ ಹಾಕಿ ತನ್ನ ಬರ್ಬರ ಭೀಕರತೆಯ ಭಯೋತ್ಪಾದಕತನ ಮೆರೆದಿತ್ತು. ಆದರೆ ಈ ಸುದ್ದಿ ಕೋಸ್ಟಲ್ ಡೈಜೆಸ್ಟ್ ಎಂಬ ಆರೆಸ್ಸೆಸ್ಸಿನವರ ಮೂತ್ರ ಹಾಗೂ ಕಕ್ಕ ತಿನ್ನುತ್ತಲೇ ದಿನದೂಡುವ ಈ ಕೋಸ್ಟಲ್ ಡೈಜೆಸ್ಟ್ ಗೆ ಇದು ಸುದ್ದಿಯಾಗಲೇ ಇಲ್ಲ. ಆದರೆ ಅಯ್ಯೂಬ್ ಮೇಲಿನ ಹತ್ಯಾ ಯತ್ನಕ್ಕೆ ಪ್ರತೀಕಾರವೆಂಬಂತೆ ಅಯ್ಯೂಬ್ ಮೇಲೆ ದಾಳಿ ಮಾಡಿದ ಮುಖ್ಯ ಆರೋಪಿ ಆರೆಸ್ಸೆಸ್ಸಿನ ಭಯೋತ್ಪಾದಕ ಶ್ಯಾಮ್ ಪ್ರಸಾದ್ ನನ್ನು ನಾಲ್ವರ ತಂಡ ಹತ್ಯೆ ಮಾಡಿತ್ತು. ಬಿಜೆಪಿಗರ ಕಕ್ಕ ತಿಂದು ಕೊಬ್ಬಿರುವ ಈ ಪೋಸ್ಟ್ ಕಾರ್ಡ್ ನ ಅಪರಾವತಾರ ಡಬ್ಬಾ ಡೈಜೆಸ್ಟ್ ಗೆ ಇದೊಂದು ದೊಡ್ಡ ಸುದ್ದ್ದಿಯಾಗಿತ್ತು. ಇರಲಿ ಬಿಡಿ. ನಂತರ ಇದಕ್ಕೆ ಪ್ರತೀಕಾರವಾಗಿ ಆರೆಸ್ಸೆಸ್ ಭಯೋತ್ಪಾದಕರ ತಂಡ ಪ್ರದೇಶದ ಕೆಲ ಮುಸ್ಲಿಂ ಮನೆಗಳ ಮೇಲೆ ದಾಳಿ ಮಾಡಿ ನಗ ನಗದು ದೋಚಿಕೊಂಡು ಹೋಗಿತ್ತು. ಇದು ಇಲ್ಲಿನ ಯಾವುದೇ ಮಾಧ್ಯಮಗಲಲ್ಲಿ ಬಂದಿರಲಿಲ್ಲ. ಇದನ್ನು ಕನ್ನಡದ ವೆಬ್ ಪೋರ್ಟಲ್ ಒಂದು ವರದಿ ಮಾಡಿತ್ತು. ನಂತರ ಎಚ್ಚೆತ್ತುಕೊಂಡ ಈ ನಮಕ್ ಹರಾಂ ಸಂಘಿಗಳ ಕಕ್ಕ ತಿನ್ನುವ ಕೋಸ್ಟಲ್ ಡೈಜೆಸ್ಟ್ ಎನ್ನುವ ಶಿಖಂಡಿಗಳ ಪೋರ್ಟಲ್ , ಆ ಘಟನೆಯನ್ನೂ ಆರೆಸ್ಸೆಸ್ ನವರ ಕೃತ್ಯವನ್ನು ಜನರಿಗೆ ತಿಳಿಸಲು ಉಪಯೋಗಿಸದೆ, ಅಲ್ಲೂ ಚಡ್ಡಿಗಳನ್ನು ಸಂತೋಷಪಡಿಸಲು ಎಸ್ ಡಿ ಪಿ ಐ ಯನ್ನು ದೂರುತ್ತಾ ತನ್ನ ನಾಯಿ ಬುದ್ಧಿ ತೋರಿಸಿತು.
Enchinambe? any secret message u sent? plz send it to me through whatsapp if CD doesnt post!
WHERE IS MY REPLY/COMMENT? NO GUTTS TO POST THAT? FEAR OF PEOPLE WILL COME TO KNOW YOUR TRUE COLOUR ? DO YOU WANT TO POST MY MOBILE NUMBER? come on show the journalims ethics now, I dint post anything abnormal things,... post it. Else anyway we have whatsapp to circulate this...
My dear Confused Reader aliyaas Coastal Digest ......Yes he might got such education from certain communal group But what you got from terrorist sangh parivaar? why you are eating shit of RSS Mr. Coastal Digest aliyaas Confused Reader ? You asked whats wrong in yur report? am asking whats right there in your report? Do you know whats journalism ethics? Just making happy and creating some rooms to the political party for which your CDs owner suports ? Shame on you man. Do you know why and how this things are started? One Mr. Ayyub who is attacked by RSS terrorists in first week of January. Sanghis chopped out his 2 legs and 2 hands. But where was your report on that? Did u report it? No, right? After killing Shyam Prasad u reported first report, as a following report u again blamed SDPI by saying its a retaliation attack on 'shyam Prasad !!. After RSS attack on muslim houses were not reported inCD till one Kannada web portal reports it. Later u also reported by blaming again on SDPI !! What you are getting from Sanghis if you are blaming SDPI? Do you think this is the journalism, my foot. Thats not joiurnalism. That called as "PIMP JOURNALISM".... Mind it. Now dont come out one more name of "Confused Reader", come out with original name, Coastal Digest. have some shame
In Kannur Sangh parivar and Left groups have been indulging in bloodshed for decades. Now SDPI also entered the fray. Very bad development. saffron groups will seize the opportunity to attack innocent Muslims.
My dear hurt reader! Is there anything wrong in report? If there is something wrong please point out. The report clearly says that RSS men targeted innocent Muslims after SDPI men killed a ABVPI activist. By the way how can u call entire community manuvadi? I think you have received poisonous education from certain communal groups. Please educate yourself.
Shocked to see such a low level repot on a news portal like coastaldigest.com, of which I was a fan so far. How can you blame SDPI if RSS goons attack innocent Muslim families? I think CD team is full of chaddi sanghis. The contact us page of CD also shows the name of a woman from manuvadi community. Where the CD is heading?
This is too much by safron groups targeting one comunity people
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