Mattennavar, who had openly admitted planting bombs in LH, acquitted by court

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.

Bhopal, Mar 10: Senior Congress leader Digvijay Singh on Tuesday parried questions on the exact number of MLAs supporting the party in Madhya Pradesh amid a political crisis triggered by the resignation of Jyotiraditya Scindia and 14 MLAs loyal to him.

Repeating his allegation that the BJP was trying to destabilise the Congress-led government, Singh told reporters that the BJP had arranged three chartered planes for Bengaluru on Monday to fly out some MLAs loyal to Scindia.

"We want to know why Bengaluru is used every time to destabilise governments?" he questioned.

When asked about the number of MLAs supporting the Congress in the current political scenario, Singh only said, "Just wait".

He said an atmosphere of uneasiness has been prevailing in the BJP since the Kamal Nath government started cracking a whip on various mafias.

"We (the state government) are exposing Vyapam scam, e-tendering scam, Madhyam scam. In the honey-trap case, BJP men were found to be involved. This will be exposed," he said.

The political crisis in Madhya Pradesh precipitated with the resignation of Jyotiraditya Scindia over his apparent marginalisation in the state politics. Following Scindia's suit, 14 legislators loyal to him have sent their resignation letters via e-mail to Madhya Pradesh Raj Bhavan.

Scindia was subsequently expelled from the Congress by party president Sonia Gandhi.

Speculation that the Guna royal might join the BJP gained ground after he met Prime Minister Narendra Modi in Delhi this morning.

Bengaluru, Apr 20: As many as 59 people were arrested on Monday for attacking police and health officials at the minority dominated Padarayanapura in the city when they went to quarantine some people, police said.

"Fifty-nine people have been arrested (in Padarayanapura) and have been taken into custody. The people attacked the officials who had gone to quarantine some poeple who were the primary and secondary contacts of three COVID-19 patients," a police officer said.

A large number of people, mostly youth from the minority community poured on to the road on Sunday and thrashed the health workers who had gone to quarantine some people who were the primary and secondary contacts of the health workers.

The officials were allegedly beaten black and blue.

Some local residents who went to the rescue of these officials were also thrashed.

According to police, one among the arrested is a woman by name Firoza who had allegedly instigated the mob to attack the health and police officials.

Subsequently, a large number of police personnel were deployed in the area to avert any untoward incident and to quarantine those who are suspected to be infected with COVID- 19.

Blowing sirens, a strong contingent of policemen carried out a flag march in the area.

The Bengaluru police commissioner Bhaskar Rao later called on Chief Minister B S Yediyurappa and briefed him about the situation in Padayarayanapura.

The violent incident drew angry reactions from various quarters.

Karnataka Home Minister Basavaraj Bommai said an incident like the one at Padayarayanapura will not be tolerated.

"I met Chief Minister and briefed him about the incident. He has told us to act strictly. I have told the same to my officials. We won't tolerate such acts by anyone. We have arrested 59 people. Five FIRs have been registered," the minister told reporters.

Bommai, who visited the area took the senior police officials to task for not being present on the spot when the incident took place.

"Where were you? What were you doing when the incident happened?" he questioned a senior police officer.

"We will demonstrate to the people what is containment zone, what is seal down and what is police action," he said.

Condemning the incident, Health Minister B Srimulu warned those who indulged in such activities.

"The inhuman act of attacking police and health workers in Padarayanapura is highly deplorable. Our government will take appropriate step against those indulging in the attack on health officials and police officials who had gone there to protect them," he tweeted.

BJP's firebrand MP Shobha Karandlaje reacted sharply.

"Seculars attack #CoronaWarriors when they were quarantining the secondary contacts of #Covid19 in Padarayanapura of BLR. While #HealthcareHeroes are working overnight to contain #CoronaPandemic, these morons are assaulting our heroes! Let's not be soft on these anti- nationals!" Karandlaje tweeted.

Meanwhile, the minority leaders called on Congress state president D K Shivakumar to persuade the people of the minority community to assist in identifying the COVID-19 patients or carriers.

Former chief minister H D Kumaraswamy too condemned the attack and demanded stringent action against the culprits.

The Congress MLA from the area B Z Zameer Ahmed Khan while condemning the incident, sought to know why the health workers and police officials went to the area late in the night and not in the morning.

"Why did the police and the health workers go in the night when I had told the BBMP Commissioner that I will take them at 10 am?" Khan told reporters.

Defending those who attacked the government officials, Khan said they were uneducated labourers who didn't know what they were doing.

Padarayanapura and Bapuji Nagar were among the first areas to be completely sealed as people were not abiding by the prohibitory orders under Section 144 of the CrPC.