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
Ibraheem Hussain Udupi, Just one thing If he is wrong he will be punished and Mashallah we know that he has a good reputation and if you are wrong Alaah will punish you. So It is only right and wrong. YOU ARE PURE JEALOUS.
Mohammad, Mangalore
The facts which I wrote is 100% true and nothing conceited. People of Kudroli know Masood and his family and their contribution to the Muslim Community. If you compare his economical condition from 50 years back to now, you will realize from where he got the money. He was henchman of Mr. Poojari, who brought him to political life, and bank loans approved to him for his various projects and hotels in undivided DK district while Poojari was central Minister. Poojari made him as MLC and he was not elected MLC. Masood was not born with Golden spoon, by hook or crook become rich man that everyone knows. He is a \PRACHARA PRIYA\".
I have no enmity with Masood, whatever I wrote it is fact and people from Muslim Community of Kudroli and Jodu Palli knows. With regard to Halal and Haram, he is answerable to Allah."
hey hang on Mr. George. Are you appreciating a classless goon who can illegally trespassed to an institute to show his brutality. If you are an uneducated illiterate coward man I have no issues, but I don't think so, you must be well educated civilized white collared man. My advise is to you, always try to stand with the truth, bcoz the truth will prevail. if the victim has done something wrong, what is your role if you are a neighbor? just to advise them in a peaceful manner, he repeats just give a complaint at the nearest police station, that's all. Who is this Kishore, is he appointed by the government or the local body to punish for those who creates nuisance in that place. Hey guyz stand up as a team irrespective of any religion and raise your voice, if required raise your muscles against such nasty criminals and smack them down. don't let anyone to destroy your community in the name of religion or politics. Bring peace & prosper with your neighbors, live lively and peacefully.
Ibrahim Hussain Udupi, One word may Allah give you good sense and take away the hasad you have in you towards people. My advice to you is good deep and check the facts and also the number of good deeds him and his extended family members have done to our community. Allah is watching and he is the one to decide on being wrong or right. Gain respect not demand respect. Thank Arakul Riyadh for your advice and Allah will reward the one who does good deeds be it us, him or anyone else.
Mr. Ibrahim Hussain, Udupi and Mr. Mohammad Mangalore. Please for Allah's sake donot quarrel each other. We are Muslim and one Umma. We should not show our behavior for other religion. This is not the place for arguing. Whatever we wrote here should give answer to Allah (SWT) at the time of resurrection. Pray ALLAH for forgive us for our unwanted behavior.
May ALLAH bless us and follow the religion with the foundation of our beloved prophet Muhammad (S.A)
Mohammad Mangalore,
I don't think you were not born during the Mangalore Riots. I dont want to elaborate the incident that may be healthy in this forum. Masood is one of the opportunist Politician ever lived in the Mangalore. His popularity is nil, he has no people support in Bunder Area. No.2 businessmen of his relatives residing in Dubai and forest Wood thieves donated large amount to the college and a Madrasa near Jodupalli just to avoid income tax. You are wrong to say two Masjid were built by Tippu sultan, except Zeenat Baksh masjid. You are in dark days in this 21st century. I think you are henchman of Masood, who has low respect in Mangalore.
However, let the readers know what Central Committee did to this incident, clarify.
Third class guys can only support this type of students in the name of religion. shame on them as they are linking with their religion ...well done kishor .we support you.
I could see statements made by some non muslim brothers is really intensive which produces wrath among different communities. I have my condolences to the victim and his family. However, I strongly disagree with the action of the accused who could barge into college premises and assault the student. I am sure the reason for this attack is not the bike nor the roaring silencer , the real motive is something else. When the street dog becomes mad, there is no point of taking it for medical treatment, but it must be treated the way it should be treated. Hope the message is clear.
Ibrahim Hussain SS Udupi, Go check your history as per our knowledge Mr. Masood was married in the year 1966 and not 1965. THe riot was started by Putthan (beary) and this can be vouched by the urdu speaking persons of that locality. I will have to forgive your knowledge on when the two masjids were built in Jodupalli (it was in the time of Tippu Sultan). The two masjids were made one thanks to Mr Masood when he was the Chairman of the minority commission and the president of the mosque. For the college of Kashipattana there huge money was donated by Mr. Masood, his brother, brother in-laws and I can vouch that you are not one of them. Go to Bunder and check how many weddings of poor girls are being donated by them. Go and check the accounts of the Central committee and you will know how much money has been given to riot victims and innocent muslims be it for theirvpersonal heath or marriage. I know that he has personally given money from his own pocket many a times as I reside near his house. Come to Mangalore and check what the central committee has done and not stay in Udupi and comment. May Allah give you good sense.
Mohammed Mangalore,
I know Masood's old story. 1965/66 first Mangalore Hindu- Muslim riot was perpetrated by Masood family and entire community sufferred, and he is man behind the whole incident. Central committee is only doing the job of representing the memorandum to the DC or Police commissioner that's the end of it. No follow up or solution. Kudroli Two masjids one place? As per quran and hadees all muslims brothers and equal, then why this two Masjid's in one vicinity?
Regarding Kashipatna Girls college is not a charity college, its a commercialized educational institution. Did Masood pay full amount for this school building? Or what is his contribution, you have to elaborate.
Constructive criticism are always brings some sort of solution to problems, Mr. Mohammad.
Give me one example of one instance of Ullal Riots or Kavoor/Bajpe riots, what is the contribution to the victims of the riots by Central Committee?
Mohammed SS, It clearly shows how the muslim community is divided (Hanafi and Shafi). You point one finger at someone and the other 4 will point at you. If we have to postmortem the so called MUSLIM LEADERS whom you support (we very well know which language they speak) then all their wrong doings will spill out. Do not wash your dirty linen in public.
Dear Ibrahim Hussain, don't you remember Masood's old story, what you are expecting from him
Ibrahim Hussain Udupi, I can scense your jealousy in naming some politicians name when you do not know what good Mr. Masood has done to his community. Come to Jodupalli,Kudroli, Bunder etc and see. The Central committee is doing a good job and people like you are always there to point fingers at someone or the other. If you think you can do a difference stand for elections or let us know what good you do to out community. It is easy to write negative comment but to write a good one you need to be good at heart. By the way ask the Kazi of Mangalore what Mr. Masood has done and is doing for the community. go visit Kashipattana where a girls college is coming up go to Kudroli and visit the old age home for women. Come out of your dreams bro. Grow up and learn to appreciate.
The main mistake here is from parents. They should not provide either Motor Bike or Mobile to student. Let them start earning in their own, then let them buy Motor Bike, Car or Mobile or whatever they need.
Here one mistake made by home guard by handling law and order by himself by hitting him. It should not happen in future. There should be severe enquiry needed for both the party to find out the culprit behind this.
May Allah (swt) protect our all muslim Ummthis from bad and prohibited things.
Do home guards can handle law and order situation and arrest any one? They are third rate guards as Mr. Kishor. This matter have to be investigated and stripped out from the Home guard role.
Why only Muslim Students are vulnerable to arrest these days. Recently a Muslim student was tortured by the Police allegedly, having contact with the missing Girls were found in Kerala state.
Why muslim Central Committee led by former politician Masood is silent?
look at him. slept like a buffalo, he deserves more punishment, if some strange person is coming and beating a strange one?, readers must feel the pain behind that, making loud sound on the public road rash idriving is not a culture of civilized person
police must investigate the matter if any evidence of rash driving both must be punished kishor for taking law in hand and student for rash driving on public road.
who is he to beat the student, if they are doing rash driving let police take the action, he is targeting student because they are muslims, so intolerance. must take action against him in future there is no wonder if he enters the college and shoot students.
Good Work by kishor, this rash riders are not only killing themselves but also killing innocents.
i too heard silencer loud sound, all the way irritating pedestrians, its not about hindu or muslim, better to warn their parents before taking charges on them otherwise media will carry this headline mentioning the religion's name, each and every one should be punished.
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