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.
The proposal prepared by Vidya Bharati Akhil Bharatiya Shikshan Sansthan, the education wing of the RSS and submitted to the Human and Resource Development Ministry, also points out that co-education will have to be discontinued if working hours of schools are extended.
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Comments
Bachelors club want to create rule for families.... First get married then U can follow this rules... and then dont stop modi to reunite his wife... U cheddis have ruined his family life...
It is RSS suggetion.. it means MAD
Learing sanskrit in schools and colleges....i dont think it is an issue at all....we learned kannada, hindi, english...sanskrit is also one of that kind....interesting...
Well, everyone understand the sanskrit, people read & understand the vedas, githas. May they turn real religion
Who are they to decide education strategy. It seems RSS is the supreme authority of governance than indian government. It shows RSS is the decision maker and indian government is simply implementing.
May Allah save our country.
Not all the suggestions are bad.
Support the idea:
- Banning co-education system.
- Relieving parents from Home works system.
- Learning Languages should be optional.
- Indianization of education is Ok, westernization has ruined the family values.
- Extra-curricular activity is good, to know the interest of children.
- Working parents can have option of having their children for long hours at schools where Hindus can study Sanskrit, Muslim can learn Arabic and Christians can have their preference.
Not supporting the idea:
- 12 hrs. is too much, most of the developed countries they limit the working hours of adults to 8 hrs. only.
- Forcing Sanskrit to all is too much.
Indian culture is good, family value is eroding which is bad for society as a whole. But forcing the ideas seems to be dangerous.
12Hrs, we don't want to tell even our enemy's children
Samskri : Nothing should be imposed. It is the people's choice.
We should see where the world is heading.
English : Now the important language is for this worldly life is English.
Arabic : Arabic is also big plus point for job seekers. 22 Countries have mother toungue as Arabic. This is the 2nd highest spoken language
DEAR FRIENDS ,
WHO COMMENTED ABOVE.. YOU PEOPLE FORGOT TO ASK WHO ARE THEY TO TELL TO GOV WHAT TO DO AND ALL..
WHAT THEY KNOW ABOUT SANSKRIT.. FIRST OF ALL THEY HAVE TO LEARN TO WEAR PROPER DRESS....NOT CHADIIES ...
RSS RSS RSS, in logo ko koi kaam nahin hain kya, indian citizens doesnt need your recommendations for education, go and teach your chaddis what to do and what not to do, hypocrites.
its a fact that children from India are spending 20~30% more time in Schools when compared to US/UK childrens..
For 8 Hours daily school times:
-> already they carry 5~6 kg school bags, this will raise to 8~9 kgs.
-> Children need to take healthy food, who will feed them during such a long period.
-> does all schools in states are eligible to keep the students for 12 hours with all such activities., if you survey our states may be hardly you can find 2~3% schools are fit with all activities...other 98% schools are hard to spend 8 hours.
-> why teachers must work for 12 hours daily (against labor law).
before, making any regulation gossips..pls just look for facts...
THE BACHELOR CLUB now wants to separate the FAMILIES ...
Wa re WA --- A clear Sign to those who think, the cheddis who are against women (Cheddis will never be successful with whatever they play with thier devilish agenda.)
Majority of their leaders arent married, hence any suggestion from them on how to raise children should be neglected!!!
None of the chaddis may know the sanskrit language before pushing others to learn
RSS is terrorising children, 12 hours schooling is too much for small children....and its inhuman....its okay if they go with discontinuing co-education....well and fine and its islamic way of thinking....However, at the end more expenses for developing country like India, will have to build more schools and colleges separately for both....
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