Ramanath Rai has entered into a ‘nikah’ with SDPI after paying huge ‘mahr’: BJP

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, Apr 21: The Karnataka Government may spare its employees from salary cuts this month despite severe resources crunch it faces following steep fall in revenue collection due to the ongoing lockdown to fight the coronavirus, official sources said on Tuesday.

As of now, there is no problem with April salary and we can manage. But if May also turns out to be a wash-out (in terms of revenue collection), then the situation is going to be very tough, a senior Minister said.

Ministers and members of Karnataka Legislature are taking a 30 per cent pay-cut for a year from April 1 this year. Opposition Congress in the state has vehemently opposed any possible move to cut salaries of government employees.

You just cant even imagine, the Chief Minister B S Yediyurappa had told news agency in an interview earlier this month on the economic impact of the lock-down on the state's finances. Yediyurappa had also said that the government is now not in a position to implement Budget proposals, barring important ones, with all kinds of revenue collections having completely stopped following the lockdown.

The government recently said it proposes to regularise unauthorised properties in the state by imposing penalty, and also auction more than 12,000 corner sites belonging to the Bengaluru Development Authority, as part of resource mobilisation drive.

Bengaluru, Jan 29: The high court has granted bail to a 37-year-old Bangladeshi woman from the Christian community on the strength of Citizenship (Amendment) Act 2019.

The court cited Section 2 of the amended Citizenship Act 1955, according to which minorities from Pakistan, Bangladesh and Afghanistan who entered India on or before December 31, 2014 should not be treated as illegal immigrants, while granting her bail.

Allowing the petition filed by Archana Purnima Pramanik, an illegal immigrant from Bangladesh, who claims to be staying in India since 2003, justice John Michael Cunha on Monday directed her to furnish a bail bond for Rs 2 lakh to the satisfaction of the investigating officer and cooperate with the probe.

The judge observed the allegations made against her must be proved in a full-dressed trial. Archana was booked for obtaining documents such as PAN and Aadhaar cards and also fraudulently obtaining an Indian passport on March 28 last year. Based on a complaint filed by the assistant passport officer, Archana was arrested on November 7, 2019 and her bail petition was dismissed by a sessions court on December 4, 2019.

Born on March 23, 1983 at Tanore, Rajshahi district of Bangladesh, Archana came to India in 2003 to pursue a career in nursing. After obtaining a diploma in general nursing and midwifery at Ranchi in 2006, she worked in many reputed hospitals.

In 2010, she got married to Rajashekaran Krishnamurthy and the marriage was registered at Ranchi. After the wedding, she moved to Bengaluru and obtained PAN, Aadhaar and voter ID cards.

On April 1, 2019, Archana applied for a visa to Bangladesh for herself and her son. During her journey on May 20, 2019, they were detained at Kolkata airport and released later. However, the regional passport office issued a notice revoking Archana’s passport and she was arrested by RT Nagar police on November 7, 2019.