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.
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Are you guys thinking that RSS doesn't know about muslim education( system..? (madarasa)??? They knew every thing but acting as if doesn't knw.their main intension is to establish a Hindu Rashtra to achieve that goal they deliberately creating unrest in the society. They have already listed Muslims Christians and communist are their enemy for Hindu Rashtra. To achieve their goal they keep hunting for Muslims and their institute. These kind of programme doesn't solve the problem of Muslims instead create a lot. Better muslim groups must educate SSF about RSS ideology and their ultimate goal.
One must understand the fact that Soolibele will not rest until india become Hindurastra.you guys make any adjustment with RSS ideology but they won't change their mindset.each and every opportunity what you provide for them they will make it as a weapon to criticise in other stage. I can understand the intension of the organiser but the outcome will be 0. (Zero). It's better SSF to organise a programme for Muslim groups \ jathyatheetha rastradalli Muslim sangatanegala javabdaari \"???? will they show the same spirit and interest..???"
Why these Sunnies always with sangh pariwaar?
Even in Ullal uroos also most of the guests are Sanghis.
Kanthapuram is the supporter of modi and sangh pariwar.
may be he is enemy for true Muslims.
Instead of nasty criticism, you fringe elements show the guts to invite him for your religions samavesha (convention) and silence him. Ofcourse, the Ulemas present gave befitting response to him and tried their best to clear the misconception of Islam. Everyone knows who is Soolibele and what he stands for. Still they invited him to present Islam. Instead of appreciating their efforts, some are trying to fish in the muddy waters. shame on you!!!
Im not a SUNNI
Im not a SALAFI
Im not a Shia
Im not a SECT
Im a MUSLIM
Cheddis never teach them what is in Madrasas and they feed hindus which we muslims never teach in madrasas. WE muslim need to Convey the message to the hindus. If we dont convey to the leaders of them Then they will engage more of such ignorant acts. Even after conveying the message, if they still follow evil acts.. Then we muslims should live it to ALLAH the true God who can save or accept his decree for whatever happens. ALLAH will look after the OPPRESSORS. so dont worry MUSLIMS.
Dear HINDUS .. Honestly in Madrasa we are taught that
WHO is our CREATOR, the CREATOR of all that exists, Who give life & death & who will RESURRECT us all to JUDGE that is happened in this world.. TRUE MUSLIMS will never despair.
When we come to know that CREATOR doesnt have any image or PICTURE or statutes.. WE muslims stay away from such thing from attributing HUMAN thinking into what the CREATOR himself, said. That is the only thing which ALLAH will never FORGIVE...
Many scientist accepted ISLAM by the Scientific Accuracy which is mentioned in QURAN which is not changed since it is revealed and it will be protected by ALLAH (the creator of all that exists) . Please try to know more about QURAN and staying infront of MEDIA and accepting whatever said in it.... Its just Fooling U guys cos U never read your own religious scriptures which says NA TASYA PRATIMA ASTI>
There is no point in criticizing Mr. Sulibele, as he was making a statement based on his knowledge on Islam and Madrassa. And the responsibility to clarify the shortcomings in his speech is the scholars there. I hope they carried out their duty. Dialogue is the best way for understanding each other. One-sided ranting does not be in the good interest.
Really shameful. Are these musliyars crazy ?? Why they invited this communal guy? Do no call and give respect to RSS people in Islamic programs . Really shameful program.
Invite him to All Madrasas and make him read a few lines on Who is God and Show him the Scientific knowledge of QURAN and let him know what we Worship... which also mentioned in their VEDAS...
Without knowing people commit IGNORANT acts.. Let us invite and teach him the REALITY of MADRASAS.
These musliars invited sulibele without giving him the message of Islam.as per his knowledge madrasa and musliar is islam. so there is no wrong in his thought and speech. instead of spreading moulood spread this message of islam to your co brothers like sulibele
Sometime back Jamate Islami Hind and SIO invited Shivram Karanta as a special guest in Malpe Jamiya Masjid Symposium. He also talked in the same way as Sulibele. In the year of 1984, Muslim Welfare Association of Udipi, organized a Eid Milan at Rajangana at Krishna Mutt, Pejavar Seer was Chief Guest, stated that he also believe in one God that is Sri Krishna unlike Muslims. During 90's At Uroos function of Saidaani Bibi Darga at Central Maidan, Mangalore, Veerendra Hegde was Chief Guest, claimed that, We Hindus worship God while Idol is standing position and Muslim worship sleeping position, there is no difference between type of Worship he asserted.
However, one RSS patron and many Musliars were not correctly defended Islam in the podium. This will be a lesson to the Sunni Jammaitul Muslimeen and Sunny Educational Development Committee not invite ultras of RSS in the future unless there is a good orator to defend these Bajrangis. Because they are strong enemies of Islam and Muslims.
I appreciate that this program was held and there was a short debate clarifying the misconception about Islam and Madarsa, whatever said about Madarsa, Islam and it's followers was clarified on the podium itself.
I wish more such programmes and events should be conducted by our leaders so that there is peace in the region.
All are human beings keep on telling them about islam they will understand one day, just like how media keep on criticising about islam and made people to believe that muslims are bad people. They are working 24x7 to defame us let us work too to propogate the truth even one hour a day is much much enough.
Moilars didn't get any better guest...Even if cow or goat was invited instead of sulibele to the venue it would have been better guest...Awwe avodu nikulegu...
Abusufiyan n zaini supposed to wear orange colour dress,,,, and one day they will
Disgusting! Musliyars wake up ! there is a sayings
\Kardu uughisikonda\""
Moilar: Eer daane moolu?
Sooliebele: Yaan Moole!
Moilar: Bokka eerna cheddi parivara?
Soolibele: Yeregaavuye kiri kiri? yepala avve mone thoodu thoodu saakanad. moolu ragaale ijji.. daada pandala akulu thasbi malthonde uppuver
Hilarious !Disgusting soolibele in our own programme critising madarasa remebering me a famous kannada saying \donne kottu pettu tinnodu\"!!!However organizing team well deserve this tease bcoz themselves dont know what they doing!!!"
Good Gathering of Musliyars!
Musliyar Nannayal Naad Nannai!!!
He is a product of bajrangies...of course he does not like Muslims at all...creating problems among Muslims & Hindus is his fundamental job...why he has been called to this function...don't understand that...
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