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
\Hindutva activists raid Thomas School...\" is wrong caption
It should be, \"Hindutva Goondas Attack Thomas school ....."
Why you call these raid, Raid can only be done by government servants.
This is called Gondagiri, what the hell police is doing, arrest them.
I think as per this English should be banned as the language belongs to England.
If learning or teaching was illegal they would've spoke to the head master, or filed a case against the school.
For muslims ARABIC is first language, its the mother of all language.
hahaha look at their face and their dressing style! Their presence itself shows they are uneducated goons.. Hardly one or two guys may be passed 7th standard. All poor hindu guys are running up and down in search of arabic classes and gowmootra.. Upper class are enjoying every position in all indutries.. Poor guys.. Lage Raho..
Hi all the people of Mangalore,
Who r these people who haven't seen the steps of school and wanna dictate what is to be taught and what not? There are education boards set up for all these purposes. Where is Mangalore heading? Who has brainwashed these people? First those people should be acted as per law who leads such goons irrespective of religion? How can U expect a place to develop when U don't have a mindset for broader vision and tolerance? Anyone who speaks against some party becomes Anti national!!!
V r giving more important to Cows than Humans. If people of Mangalore unite at such circumstances, then law cannot be taken into hands by any groups, irrespective of religion. It's high time that we unite against such shameful acts.
Expats including non-muslims in gulf countries would have craved for knowing Arabic in their childhood because they know that they can have edge over others and would have got better pay in gulf. These people do not understand this. They are struck with some bad mindset which makes them to oppose anything associated with Muslims. It is difficult to learn a language later in life especially Arabic.
Uneducated goons don't know the value of languages..... moreover why sanskritbis taught in school....
Go maataas are in need of these sons in Gujarat where dalits stopped work.....go and serve the Go.......let's see how many patriots nationals from chaddi Canara sena will go....
Saffron TERRORISTS, not activists.
Many non muslim working in ARAB AND ISLAM Country for job purpose they have to learn ARABIC language and also english is foreign language are going to stop english language in school or in colleges this SRS are un educated so they fight ....
Arabic is an international laungage spoke widely in many countries. There are many million Christians , jews and other non Muslims for whom Arabic is mother tongue. In every gulf countries lakhs of non Muslim join Arabic language courses to get promotion in their jobs. In Kerala there are non Muslim Arabic teachers. These narrow minded uneducated ravan sena are defaming our district and country by their criminal acts. Law should take stern action against these anti social elements
Nayig yenchina gottu Limbeda uppad
These SRS goondas should know that, it was not compulsory.... Those who do not want to learn, they are free to keep away.... so, what is the issue ????? Look at the Words , that are taught, which are useful in daily life... like bank, airport, box, gooda angadi.... these are useful to those work in Gulf.... Bopanna KSA can throw some light on this issue.... Those who are interested , let them learn, others can SHUT UP...
RSS IS ONLY GOOD FOR THESE TYPES OF THINGS...
LET THEM SAVE THEIR MATHA COW IN ROAD FIRST...
should have banged arabic preacher :
these teachers dont have any other work, small children hardly study their 6 subject... in between arabic and other language to their head.
this unpaid shiva sena activists dont know the value of learning new things.
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