Netflix made a documentary on them which had to face a legal battle in our country, this itself gives a clear picture as how difficult to narrate the story of the businessmen who had looted the banks and the people of India in a broad daylight and yet remained immune to the legal consequences.
Here are seven Indian billionaires, dubbed as “bad boys” in their own right, who had to declare bankruptcy.
The Chronicles of a King of ‘Good Times’
Vijay Mallya, an Indian businessman, former Rajya Sabha MP, and former owner of an IPL franchise, has dabbled in new fields such as sports, politics, and the now-defunct Kingfisher Airlines. Mallya, dubbed the “King of Good Times,” charge him with a crime on Indian soil, as the Indian government attempts to extradite him from the UK.
A cohort of 17 Indian banks is attempting to obtain approximately Rs 9,000 crore ($1.3 billion) in loans that Mallya allegedly used to acquire a 100 percent or partial stake in approximately 40 companies around the world. Several agencies, including the Income Tax Department and the Central Bureau of Investigation, are looking into Mallya on financial fraud and money laundering charges.
Mallya has lost his fight in the UK High Court and has petitioned the Supreme Court to prevent his extradition. Nevertheless, it is possible that he will be extradited within a few months.
The Heist of Billion
Mehul Choksi, a runaway businessman currently residing in the island nation of Antigua and Barbuda, is wanted by Indian authorities for criminal conspiracies, breach of trust, and money laundering. Choksi was the founder of the Gitanjali Group, an Indian retail jewellery company with 4,000 stores. In the Punjab National Bank fraud case, an arrest warrant has been issued for him.
Choksi is accused of committing a $1.8 billion fraud with two employees of Punjab National Bank (PNB), the country’s second-largest state-owned lender.
In 2018, a designated PMLA authority ruled that 41 properties worth approximately Rs 1,210 crore attached by the ED in the name of Mehul Choksi and his associated firms are money laundering assets and that their attachment should be maintained.
Satyam Computers’ Demise
Satyam Computers was a highly successful IT firm in the 1990s that eventually collapsed and shut down in 2015. Among the many reasons for the company’s demise was the resignation of Ramalinga Raju, the former Chairman, and CEO of Satyam Computer Services, following his acceptance that he embezzled Rs 7,140 crore from the company.
After the Satyam Scandal, Raju resigned from the Satyam board, admitting to falsifying revenues, margins, and over Rs 5,000 crore in cash balances of the company.
On January 7, 2009, he resigned from the Satyam board of directors after admitting to an accounting fraud worth Rs 7,000 crore ($1.5 billion). Satyam was acquired by Tech Mahindra in April 2009 and renamed Mahindra Satyam.
The Sparkling Diamond
Nirav Modi, a runaway businessman, has been wanted by Interpol and the Indian government since August 2018 for criminal conspiracy, corruption, money laundering, fraud, and breach of contract. Modi is being investigated in a $2 billion Punjab National Bank fraud case.
After PNB filed a complaint against Modi and his associates for defrauding the bank of Rs 28,000 crore, the CBI registered a case against Modi and the ED began investigating him. But wait, there’s more. Modi has also been sued for $4.2 million by a California-based entrepreneur over two custom diamond engagement rings that turned out to be lab diamonds.
Modi is apparently residing in the United Kingdom and has applied for political asylum there. On June 8, 2020, the Prevention of Money Laundering Act (PMLA) Court ordered the confiscation of Modi’s property worth nearly Rs 1,400 crores.
The Man Responsible for Sahara
Subrata Roy, the managing employee and Chairman of Sahara India Pariwar, had a run-in with law enforcement in 2014. The Supreme Court of India ordered Roy’s detainment on February 26, 2014, for failing to appear before it in connection with a legal dispute with Market Regulator – SEBI.
Roy was imprisoned in Delhi’s Tihar Jail and has been on parole since May 2016. Since then, he has been successful in obtaining bail extensions on a variety of grounds. Sahara still had to pay Rs 10,621 crore as of 31 January 2019 to meet its complete liability.
Telecom Issues
Being a member of the prestigious Ambani clan is no easy feat. In March, the Chairman of the Reliance Group was on the verge of going to jail when his elder brother and Asia’s richest man, Mukesh Ambani, bailed him out at the last minute.
The ex-billionaire was brought to light when India’s top court ordered him to pay Ericsson AB’s India unit $77 million in past dues or face jail time because Anil Ambani, had given a personal guarantee.
Anil Ambani has been battling creditors and fighting multiple court cases as his phone company, Reliance Communications Ltd., has filed for bankruptcy.
A Lot Can Happen Over Coffee
Upon V.G. Siddhartha’s death, after jumping off a bridge into a river in July, the Internet was flooded with moving tributes to the CCD founder, with many of them eulogizing the late entrepreneur with the phrase “a lot can happen over coffee.”
the founder of India’s largest coffee chain, Cafe Coffee Day, penned a letter in which he spoke of pressure from lenders, a private equity firm, and tax officials.
Senior officers of the Income Tax Department of Karnataka and Goa regions conducted a tax raid at more than 20 V. G. Siddhartha locations in Mumbai, Bengaluru, Chennai, and Chikmagalur on September 21, 2017.
