Karnataka unsafe in Congress hands, says Smriti Irani

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.

Mysuru, May 6: A seven-months pregnant woman fled Covid-19 hotspot Mumbai along with her family, and made it to her village 1000 km away in KR Pet taluka in Mandya district of Karnataka, flashing her mother's ID card at each checkpost. After reaching her destination, she got herself tested for Covid-19.

She tested positive for the virus on Monday in Mandya.

The 20-year-old woman (assigned the number P637) had been living with her husband and in-laws at Santa Cruz East, Agripada in Mumbai for the past three years. To get out of the containment zone, they started out from Mumbai at 7.30 pm on April 23 -- she, her husband, brother-in-law, co-sister and their children, and a 19-year-old girl. She made it past checkposts at Belagavi, Hubballi, Davanagere, Kadur, Arasikere, Channarayapatna and Shravanabelagola and reached her village Jaaginakere at 3 pm on April 24.

She stayed at her home in the village from 24 April to April 29. With the Mandya district administration testing people on a campaign mode in the entire district, she and her family got themselves tested on May 1.

Her test returned positive on May 4, according to deputy commissioner M V Venkatesh.

Along with her, the 19-year-old girl (P638) who travelled with the family also tested positive. The girl is in the sixth semester of her BE Electronics course at an engineering college in Mumbai.

This is not the first case of a corona fugitive from Mumbai. Earlier, a 50-year-old man who ran a hotel in Mumbai travelled in a vehicle carrying dates and reached Channarayapatna in Hassan district.

In fact there have been three such incidents, including that of seven people coming to Mandya from Mumbai transporting a dead man's body for cremation in his native village of B Kodagalli in Pandavapura taluk.

Mandya deputy commissioner Dr Venkatesh has appealed to natives of Mandya who are stuck in Mumbai to stay there till the Covid situation comes to control.

So far 28 people in Mandya diatrict have tested positive for Covid 19. Seven people have been discharged. Currently there are 21 active cases being treated at the Mandya Institute of Medical Sciences.

Mangaluru/Udupi, May 22: Two prominent Qadhis of coastal Karnataka today declared that Eid al-Fitr will be observed in the region on Sunday, May 24.

Twaqa Ahmed Musliyar, the Qadhi of Mangaluru and Ibrahim Musliyar Bekal, Qadhi of Udupi Samyukta Jamaat in their separate statements made this announcement. 

The decision was taken as there was no news of new moon sighting in the coastal region today.

Ullal Qadhi Qurrathussadath Seyyid Fazal Koyamma Thangal Al Bukhari also announced that 24th May is first of Shawwal and Eid al Fithr will be celebrated on that day.