Our Flawed Heroes
The Tatas have always been held in high esteem, scoring both in terms of people’s perception of their ethical governance practices and management of their businesses.
 
Currently, Ratan Tata, as the head of the Tata Group epitomises, and is the beneficiary of, such esteem. I believe, however, that the group is suspect on both counts. Let us look a little deeper at their managerial successes and failures, leaving aside ethical issues for the moment.
 
The Tata group has always been highly unwieldy, with no idea of the number of companies it owns and manages. Ratan Tata took over the reins of the group in 1991. More than two decades after he took charge, the group continues to be as unmanageable as ever, with even estimates of the number of companies in the group showing wide disparity. In addition, the Tata’s holdings in various companies are, at times, more a matter of conjecture than fact. Unravelling the maze of cross holdings would probably require the skills and patience of a James Bond.  
 
Let us look specifically at some of the top entities in the group. Tata Steel acquired Corus Group plc, Europe’s second largest steel producer in 2007. The acquisition has proven to be a monumental failure, with $4.5 billion being written off as impairment in its value.
 
The impairment is likely to continue in future, especially given the state of the industry. Currently, their efforts to dispose of the company are proving more difficult than they imagined. The hubris of Ratan Tata in acquiring Corus at such a high price, ignoring the advice of his managers, has proven to be very expensive. 
 
 
Tata Motors acquired Jaguar Land Rover in 2008.  The initial performance was undoubtedly outstanding, with the Tatas able to revive the fortunes of the company.
 
In recent times, however, Jaguar has caused Tata Motors significant embarrassment, with one of the largest impairments in value at GBP 3.1 billion last year. The future seems less than rosy. The overall impact on Tata Motors will be significant, given the size of the investment in Jaguar and its revenues. 
 
 
The Nano, initially touted as the jewel in the crown and a fine example of the creativity of the elder statesman, has proven to be an unmitigated disaster, finally dead and buried, with only the final rites remaining to be performed. 
 
Tata Motors made its foray into cars three decades back. Their market share continues to be insignificant and the division struggles to make profits. Contrast that with some other companies which entered the market much later, and have performed well, taking advantage of the growth in the Indian four wheeler market. 
 
The biggest failure has obviously been the telecom business. The last two decades have witnessed the vibrant growth of the Indian telecom industry that has been unmatched almost anywhere in the world. Everyone who entered the business has earned handsomely and created value for the industry and for himself, except of course the Tatas. Starting off with their choice of technology (CDMA over GSMA), Tata Tele is a case study in poor management. The business has now been sold off to Bharti Airtel, on terms that have inflicted huge losses on the Tata group. 
 
Other prominent group companies such as Tata Power, Tata Chemicals, Indian Hotels and even Tata Global, have not covered themselves with glory and continue to underperform. 
 
The only two companies that have consistently created value over the years are Tata Consultancy Services (TCS) and Titan. This is probably more due to the hands off attitude of the Tatas in general and some strong personalities, who managed the two companies on their own while paying lip service to their being a part of the Tata group. Tatas should be thankful; the largesse they have received over the years from TCS has ensured that they do not experience cash flow problems and are not constrained in any manner in their penchant for creating major business disasters.
 
 
The purpose here is not to castigate the Tata group, who in their own way have been pioneers in the Indian corporate sector. The objective is to raise questions, the answers to which could be decisive in Indian corporate governance. 
 
How can one of the most revered corporate houses in the country continue to display performance that is so underwhelming? How can they destroy so much wealth and still be considered business leaders? Why are their owners and managers immune from questioning of their actions? A company is a vibrant entity that impacts various stakeholders- shareholders, employees, suppliers, customers, regulators and the government, financial institutions and others. Each of them is paying the price of the hubris of one person. 
 
  • Shouldn’t the Indian corporate sector be absolutely ruthless in evaluating and holding corporate management accountable for performance? Shouldn’t accountability extend to the so called promoters, even revered ones, who display total lack of business acumen but continue to hold sway over their corporate empire?

 

  • Shouldn’t we hold corporate leaders to high standards of management and governance, especially given the powers they enjoy and the esteem we hold them in? Shouldn’t our assessment be based on merit and not the personality involved in the poor governance?

 

  • What can the small shareholders do to ensure they do not suffer from the megalomania that afflicts most of our corporate heads? 

 

  • While nothing illegal has been done, with no apparent malfeasance, does it not call for the removal of Ratan Tata from decision making powers despite the large shareholding he continues to have?

 

  • What role can regulatory organisations such as SEBI play when the interest of the small shareholders is being given short shrift in this manner?
 
As a country, hero worship is in our genes; we build heroes easily. Since ancient times, we have believed in the mythical powers of our heroes to lift us up from the desperate conditions in our lives. May be, many of our problems stem from the fact that we raise our heroes to such a high pedestal and then keep them away from scrutiny. While hero worship of political and religious leaders is understandable, given that they are mass leaders, it is rather surprising in the corporate environment. The country pays a heavy price for its propensity towards hero-worship.
 
(Sunil Mahajan, a financial consultant and teacher, has over three decades experience in the corporate sector, consultancy and academics.)
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    COMMENTS

    Hemant Desai

    1 month ago

    Very aptly covered
    Hatts Off

    SANDESH PAWAR

    1 month ago

    Very cliché to end an Article with “we Indian’s….” Hero Worship is everywhere, think about Warren Buffet, Jeff Bezos.. I could go on. I have been living outside India for half a decade and I can say Hero Worship is not an India thing.
    Roughly a year back, I had absolutely no idea what an economic slowdown meant, what happened in 2009, what Market cap meant, which company is generating great results (I am saying I am proud of it) However 99% people like me look at TATA’s for what they have done with regards to generating enormous Jobs and creating visible name for our Country.
    I am part of a very successful technology company outside Indian I was surprised to see how many time TATA’s (not particularly TCS) are considered as pioneer of technological disruption amongst the giants like Amazon, Microdot and Cisco.
    TATA’s have always put emotions before business. Foraying into Steel only because country needs Steel to prosper. From selling “The Jubilee Diamond” world 6th largest to save Jobs, building Hotels only because Indians were no allowed in 5 Star Hotels, Is not a businessmen at work.
    I personally believe all Ratan TATA have done is followed the tradition. Trying to sell 1 Lakh car so that every Indian would drive one (I hardly see anyone would think of profit). To buying Corus and JLR out of Pride to let the world know we Indians have arrived at the world stage.
    I agree with Abhijit Gosavi’s comment, “You can't write articles like these only on the basis of your understanding of stock-market economics & finance” Think like an average middle class working class and you will understand why people Hero Worship TATA’s.

    REPLY

    Aarmin Banaji

    In Reply to SANDESH PAWAR 1 month ago

    I am sorry but I greatly differ from you Mr. Pawar.

    To start with, it is only folks who have not value for the individual (in this case, an ordinary middle-class customer) who need heroes to worship. The good and the bad an individual or an organisation does, vary with time. To keep on serving the customer is the moral/ethical duty of an organisation. Past glory and achievements mean nothing. As already mentioned by me, I do know of first-hand, what the House of Tata had accomplished (that is what made them a household name) and just because you might still find many who think so, Mr. Mahajan has done an objective assessment of the present state of affairs.

    As a case in point, the President of the Honourable Consumer Forum was surprised that I came forward to hold Tata Sky responsible for unethical trade practises and deficiency in service. He readily admitted to being a subscriber himself but as a consumer was totally unaware of how all Tata Sky consumers were being short-changed, he having taken their service on the name attached to the DTH provider.

    When you mention Bezos, this is what I have found while dealing with Amazon. Having been a user of their services even before they came to India, the speed with which they address a complaint (and believe me, I am a complaining sort who demands impeccable service from anyone I deal with) first astonished me and now I take it for granted. The one time when their Customer Service repeatedly failed to resolve a complaint over an extended time, when in exasperation I demanded the contact details of Mr. Bezos, I was sent those within 5 minutes. A reply to that complaint, was received by me from Mr. Bezos’s office within half an hour and though it took a few days after that, my complaint was resolved completely to my satisfaction. That is why till date, I have made purchases in Lakhs from Amazon.

    Contrast that with my attempt to contact Mr. Ratan Tata and the Chairman of Tata Sons in 2016 and 2017 (for, the chicanery on the part of Tata Sky has been on-going since 2013), for which the result has been zero.

    After all this will I hold Mr. Bezos as hero? Emphatically not.

    It is just how organisations big or small and individual lives should be led, with ethics, morality and due diligence at all times and not lead an indifferent public, shareholders and their customers, up a garden path.

    Intentions, subjectively noble or not, like you sight about the Nano car mean nothing, when the customer has been left holding a badly engineered glorified rickshaw, which was a white-elephant even at Rs. 1 Lakh ( which BTW was not the final on-road price when it was sold even initially).

    Urge you to rethink your assessment. Thank you.

    Aarmin Banaji

    1 month ago

    As a person living in Nagpur (who was born a Parsi), where J.N. Tata laid the foundation of his vast industrial empire by starting The Empress Mills in 1877 and having had my friends, family and myself being intimately involved with the house of TATA since close to a hundred years, the content of what Mr. Mahajan says is quite insightful and correct.

    Over the last half a century, I have not seen anything but a steady decline, not only in the financial fortunes of the Tata Group and their ill-conceived ventures but most distressingly in the ethos of its persons at the helm, percolating way, way down the line. Business ethics which proverbially Parsis and specially the Tatas were known for, have gone for a toss long ago.

    To the extent, that after giving much leeway and opportunity for corrective action to be forth-coming from their side, in June 2019 I was forced to approach the Consumer Forum to address the deficiency in service and unethical trade practices from a Tata company. It is an issue which not only effects me but literally lakhs of people in India, which use this particular service, many of them doing so because it is from the house of Tatas.

    They have no idea to what depth of indifference, high-handedness and utter chicanery this ‘hero’ has sunk.

    To start with, I did not care to name the Tata company which forced my hand but I see below that Mr. Dilip Modi has done so and I offer my sympathies to him, having faced this shoddy behaviour stretching back to 2013. Whichever way the Honourable Forum decides the case, I shall be happy to post the entire matter on Moneylife if the editor allows and so wishes.

    DILIP CHIMANLAL MODI

    1 month ago

    I recently questioned TATA SKY personnel for reason for their increase in the fees on second and subsequent set top boxes, where previously they used to charge a flat fee. The answer given was, "It is not us but IRDA has compelled us to levy the same". When I asked if they could direct me to the actual page/ paragraph in the IRDA Ruling of 2019 implementation, they could not and despite repeatedly writing to the CEO and the Nodal office of TATA SKY, to date they have been evading a response to my query. May be there is no such ruling by IRDA and TATA SKY has chosen to increase the charges … but not in a transparent and fair way?

    P M Ravindran

    1 month ago

    I do not know economics much. But the economics discussed here made sense even for me.

    Regarding ethics I recollect two instances which do not stand the Tatas in good stead. One, is the allegation of paying protection money to the insurgents in assam and the other is about Lalu Prasad Yadav's men driving off Tata vehicles from their show rooms in Bihar during his daughter's marriage and returning them after the event. I see both of these as succumbing to terror, though of different kinds. Not expected of a corporate giant like Tatas.

    Rajneesh Agarwal

    1 month ago

    I have felt a strong lack of vision and leadership in the tata group and have stayed away from their shares not knowing when they will mess up things. Too many businesses, high cost acquisitions, questionable partners, huge media spending on image building, promoting yes men, Cyrus episode, Nira Radia episode, excessive politics etc have really led to a huge loss of value....They have really lost out on their share of golden future of India

    Ramesh Poapt

    1 month ago

    Trent, Tata Elixi ignored as good co.s...and what about acquisition of
    Bhushan Steel?

    REPLY

    Ajay Sharma

    In Reply to Ramesh Poapt 1 month ago

    Not sure about Elixi...It was initially hailed as some kind of high-tech engineering company, but just acted as the outsourcing arm of JLR.

    Virendra Sharma

    1 month ago

    TATAs should search a very honest and dynamic business oriented person to head overall group.

    Virendra Sharma

    1 month ago

    TATAs should search a very honest and dynamic business oriented person.

    Suketu Shah

    1 month ago

    The way Ratan ousted his relative Cyrus Mistry shows they are a business group not to be trusted.I have exited all Tata stocks and wl never buy again.

    REPLY

    Abhijit Gosavi

    In Reply to Suketu Shah 1 month ago

    A very smart move, as the Tatas don't really prioritize high stock-market prices. Their priorities are elsewhere: sustaining profits that they use on their own employees or to help other ventures of their own in trouble. Their employees have gotten great benefits over the years and are thankful for having worked for them.

    Yes, they're quite autocratic & don't speak easily to journalists, but they are not required to, as long as no laws are broken. They don't spend money on building lavish temples or Sheesh Mahals & don't discriminate on the basis of religion etc when it comes to hiring.

    I can now see where all these comments are coming from. Creating stock-market wealth has not been their priority. If that's all you care about, go after the pharma stocks. They've been rising for years. It's another matter that doctors have been over-prescribing those drugs & killing people with them.

    P S Krishnan

    1 month ago

    Take out TCS and Titan from thr Tata Group, they are then no different than the ADAG Anil Ambani Group.

    Abhijit Gosavi

    1 month ago

    Who are these car manufacturers who have entered the market and outperformed the Tatas? Are they of Indian origin, or are you talking about the Japanese or the Americans, who have been making cars for decades? Come and take my class on Production Management, Mr. Mahajan :) The only thing you got right in this article is the risk-pooling, which has helped them get over failures due to the success of other entities in their group. Nothing illegal there. It is better to fail than produce sub-standard junk and ensure that you have a market by bribing people in high places, which is a part of Indian corporate culture. You can't write articles like these only on the basis of your understanding of stock-market economics & finance. Sorry to disagree here.

    REPLY

    Abhijit Gosavi

    In Reply to Abhijit Gosavi 1 month ago

    Btw, wasn't trying to be rude. Mastering any technology and then producing a commercially viable product from it takes years. It is remarkable that the Tatas were able to produce a car in India on the basis of their know-how of making diesel trucks. (Plus, other than Nelco, Tata Timken, and now Tata Motors, most Tata ventures have succeeded). So I respectfully disagree with this analysis.

    But sadly, people only listen to the economists and finance folks nowadays, when in fact it is the engineers who get the job done and create jobs. That Nobel Prize in Economics most definitely needs to be converted to a prize in Engineering.

    Ajay Sharma

    In Reply to Abhijit Gosavi 1 month ago

    All other Indian car companies have done better than Tata Motors. The Tata Indica was an initiative heavily pushed through by Ratan Tata himself and was seen as a great success, yet never even made unit profitability.

    Abhijit Gosavi

    In Reply to Ajay Sharma 1 month ago

    I meant car manufacturers of Indian origin, not Japanese, American, or German. Thus, Maruti is not really an Indian-origin company; their technology came from Japan. I may be wrong about the Tatas, but afaik, no company of Indian origin has manufactured a car. It's very complicated product that needs sophisticated manufacturing processes.

    Also, again I may be wrong, but in the old days, most large Tata firms (Telco & Tisco) ran schools and hospitals for their employees (including the operators, thereby transforming their lives) from their profits, unlike building Sheesh Mahals for themselves. Jamshed Irani was the big boss at my first employer. Things may have changed, but I find that hard to believe.

    Rajiv Gupta

    1 month ago

    If there is no respect for dissent then sooner or later, there is decline.
    Mistry was right in raising red flags & taking steps to correct course but thrown out. This episode is a pointer towards the rot in the system. It is not good to throw good money in saving failing enterprise. Reportedly Tata Nano, Corus & even JLR was flagged of by Mistry but to no avail.
    People need to give up controls & then refrain from meddling (even if they are majority shareholders), that seems to be the case now but too late. Business turnaround is very difficult because of the slowing economies all over the world.
    Recent success of Titan may be driven by the infamous 20:80 Gold import scheme & not competence alone. The GoI should publish whitepaper after conducting forensic audit of money trail about dirty profits.
    Nira Radia episode is not worthy of mention.
    The only point is that the empire is not built on friends in power & favours therefore the group is still revered & this definitely sets them apart from all others.

    Milind Nadkarni

    1 month ago

    The article is an eye opener and depicts what is really happening in the Tata Group which is considered perhaps the no 1 amongst Indian corporates for professionalism and culture. The failed ventures listed in the articles were not started to generate employment but to generate profit for the shareholders. The cases listed in the articles do not show any calculated risk taking, they show the Chairman / CEO not listening to professional managers / advisors and taking decisions on his own and then the shareholders / employees paying for his misadventures. Sorry state of affairs to say the least, thanks to the author to bring out such stories in so called # 1 corporate of the country.

    Pankaj Mahidhar

    1 month ago

    I got blasted when I said something similar in a closed social group on WhatsApp. I hope more is coming.

    REPLY

    Ajay Sharma

    In Reply to Pankaj Mahidhar 1 month ago

    Why would more come? You have to wait for some whistleblower to reveal the true nature of the group. Even the Cyrus Mistry episode did not wake people up to the corporate governance concerns...

    Fitch Downgrades Jain Irrigation to 'RD' on Bank Loan Default
    Fitch Ratings has downgraded India-based micro-irrigation company Jain Irrigation Systems Ltd (JISL)’s long-term issuer default ratings (IDR) to restricted default ('RD') from 'CCC-' due to the company's uncured payment default, high risk of insolvency proceedings, cross default with notes and overdue receivables that are causing liquidity squeeze.
     
    Firth says, "JISL's IDR has been downgraded to 'RD' as our definition of the rating is uncured payment default but no initiation of bankruptcy filings administration, receivership, liquidation, or other formal winding-up procedure yet and continuity of business operations."
     
    The ratings agency also cut to 'C' from 'CCC-' with a recovery rating of 'RR4' its rating on JISL's $200 million 7.125% senior unsecured notes due in 2022. The downgrade follows JISL's uncured payment default on working capital debt, following which the lenders are pursuing an out-of-court debt resolution process.
     
    "The recovery analysis assumes that JISL would be considered a going-concern in bankruptcy and that the company would be reorganised rather than liquidated. We have assumed a 10% administrative claim," the ratings agency says.
     
    Firth also removed all its ratings on JISL from rating watch negative (RWN), on which they were placed on 21 June 2019. The notes are issued by JISL's wholly owned subsidiary, Jain International Trading BV, and guaranteed by JISL.
     
    JISL informed Fitch that it failed to meet debt service commitments on its working capital facilities in India with delays of between 60 to 90 days in some cases. JISL's working capital lenders have signed an inter-creditor agreement (ICA) whereby the lenders introduce policies for the resolution of stressed assets under the Indian regulatory framework. Fitch says its understanding is that lenders are pursuing an out-of-court process to formulate a debt resolution plan by early January 2020.
     
    The company also faces formal insolvency proceedings if its liquidity position does not improve and lenders initiate legal proceedings upon the failure of the debt resolution efforts. The ICA dated 5 July 2019 signed by the Indian working capital lenders has a review period of 180 days, in accordance with Reserve Bank of India (RBI) regulations. The lenders have appointed Brescon to work on a resolution plan.
     
    Nonetheless, Fitch says, "We believe the risk of insolvency is high, considering uncertainty around the timing of collection of overdue government receivables. JISL's access to new debt capital is poor in our view, considering the default on its working capital debt and signing of the ICA. JISL is exploring the sale of minority stakes in some of its businesses to reduce debt. It is highly uncertain if JISL can achieve it in a timely manner to avoid insolvency proceedings."
     
    The ratings agency says it believes the non-payment on the working capital facilities may have triggered an event of default on the notes. "Under the bond indenture, an event of default occurs if JISL, which is the guarantor for the notes, fails to pay principal on any debt following a grace period, with an outstanding principal of more than $15 million. The bond trustee or 25% of the noteholders can declare the principal immediately due and payable," it added.
     
    According to Fitch, further delays in the recovery of receivables from government customers in JISL's micro-irrigation systems (MIS) projects business coupled with a weak sales momentum in the six months to 30 September 2019 (1HFY20) led to the liquidity squeeze. 
     
    JISL indicated that its liquidity has reduced to Rs1.5 billion - with all working capital lines fully drawn in India - from Rs11.9 billion at FYE19. JISL collected a further Rs1.5 billion of overdue government receivables since July 2019, but fresh delays caused the total of overdue government receivables to rise to Rs14 billion.
     
    "We expect the delayed start but prolonged monsoon season to have hit the trading performance of retail segment of MIS business in 1HFY20. Enlarged receivables in MIS projects business are likely to reduce the pace of execution in 2HFY20, in our view," the ratings agency concluded.
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    Ramesh Poapt

    1 month ago

    blessing in disguise...promoters have not pledged any shares
    as per 30 june,2019 submission. they expect 3500 cr from sale of
    some business, but...

    DFHL NCD Defaults: High Court Issues Notice to SEBI, the Company & Trustee
    The Punjab & Haryana High Court has issued notices to market regulator Securities and Exchange Board of India (SEBI), and Dewan Housing Finance Corp Ltd (DHFL) and Catalyst Trusteeship Ltd among others for the company and trustee's failure to safeguard interests of debenture holders. 
     
    The petition, filed by Jyoti Khemka through Advocate Shreenath A Khemka, had requested the Court to direct SEBI to take regulatory action against the market intermediaries by conducting an investigation involved in the DHFL non-convertible debenture (NCD) issue.
     
    Catalyst Trusteeship was the trustee for the debentures issued by DHFL in 2016. At that time, ratings agencies CARE and Brickworks had given their highest 'AAA' rating to the DHFL debentures that had a tenure of three year. However, upon maturity on 16 August 2019, DHFL defaulted in the payment. 
     
    The petition says, "Catalyst failed to safeguard the interests of the Complaint, by completely failing to ensure realization of the Debenture amount that became due on 16.08.2019. The said debentures were 'secured', and the debenture trustee was supposed to hold adequate Security to secure the debenture amounts. Yet, Catalyst failed to secure and realize the amounts that became due."
     
    While the credit rating agencies had given AAA rating to the DHFL debentures, during February to May 2019, it was downgraded to 'D' (default) when it had become apparent that DHFL being insolvent will default in its financial obligations. The consistent down-grading demonstrated that financial health of DHFL did not suddenly deteriorate due to external shock, Ms Khemka says in her petition.
     
    The petition says, "It is impossible for the credit rating of a housing finance company in the business of mortgage finance to fall so sharply overnight, especially for housing finance companies in the business of mortgage finance. Non-performing assets (NPAs) of a housing finance company is usually very low at about 1%-1.5%. Further, there are ongoing investigations by into the conflict of interest issues surrounding the credit rating agencies in the case of IL&FS and its subsidiaries, therefore vitiating the proposition of having acted in bona fide fiduciary capacity."
     
    According to a whistle-blower, Catalyst Trustee has a legal duty to act on behalf of NCD and bondholders and it is legally bound to file a case against DHFL for liquidation in Debt Recovery Tribunal (DRT).
     
    "The rule says if DHFL defaults, the trustee should immediately file the case. Till date DHFL has defaulted on more than 100 instances for retail NCD on interest and principal payments. Yet, Catalyst Trustee has not yet filed any case, and still says that filing of a case is 'under process'. This 'in process' status by the trustee is there for more than one or two months. Is the delay in case filling by Catalyst Trustee because of some undue favour by DHFL promoters to promoters of Catalyst Trusteeship," the whistleblower alleged.
     
    In February 2019, ratings agency ICRA Ltd downgraded the Rs8,000 crore commercial paper (CP) issued by DHFL to A2+ from A1+ due to challenges faced by the lender in raising funds from traditional bank lines of credit and instruments.  
     
    "The risk is further heightened by the moderate economic capitalisation levels, concentration risks arising out of 17% exposure (as a proportion of assets under management- AUM as on 31 December 2018) to the construction finance segment, a large part of which remains under construction/moratorium, and the reduced ability of DHFL to support fresh business," ICRA, a unit of Moody's, says.
     
    DHFL, however, expressed concern over ICRA's re-rating of the company's CPs citing it is not merit-based and is unwarranted. (Read: DHFL Cries Foul as ICRA Downgrades Its Rating on Rs8,000 Crore Commercial Paper of the HFC)
     
    Earlier in September, a whistleblower had alleged that the resolution plan (RP) as proposed by financially stressed DHFL will allow the company promoters to continue with the previous lending malpractices for another 10-15 years as there are no substantial cash outflows for the next 10 years. 
     
    The RP has also left several depositors and non-convertible debenture (NCD) holders high and dry as the return on investment (RoI) is shown as nil. Even other lenders like banks, NCD holders, including mutual funds, insurance companies, and pension funds, ECB and NHB will have to buy 2.3% stake each at Rs54 per share in the debt-ridden company.
     
    As per the RP, balance deposits after 31 October 2019 are proposed to be restructured over 10 years with nil interest rates. Even deposits payable till October 2019 end are assumed to be paid with existing interest rate. (Read: DHFL Resolution Plan Will Allow Promoters Continue Previous Malpractices, Alleges Whistleblower
     
    Separately, the Bombay High Court on Tuesday extended its previous stay on further payments by DHFL to its creditors except for payments made parri passu (in equal proportion) to all secured creditors. According to a report by Mint, the extension was given after hearing a case filed by Reliance Nippon Life Asset Management Company or RNAM (now Nippon India Asset Management Company). 
     
    “The court noted that that DHFL owes around ₹74,000 crore to secured creditors and ₹10,000 crore to unsecured creditors and thus secured creditors formed the overwhelming majority. Some of the company’s lenders led by banks signed an Inter-Creditor Agreement (ICA) which provided for conversion of debt to equity and restructuring of DHFL debt. However the Court noted that the resolution plan provides ‘no respite in the short run,” the report says. 
     
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    COMMENTS

    Hemant Agrawal

    1 month ago

    No one will work for retail investors interest, we have to come together and start fight. drop me a mail at hemant108 at gmail.com, we will start forming the group.

    Hudaf Shaikh

    1 month ago

    Under the Companies Act, the debenture trustee is liable for any loss caused by the trustee's failure to be diligent on ensuring that the interest of the debenture holders are protected. It is clear that huge sums of money were skimmed off to pay favored banks and shockingly even unsecured creditors by creating preferential pass through certificates on some of the securities on which debenture holders had a charge without taking consent of the debenture holders with the tacit buy-in of the trustees and bankers.

    The Court should hence order the immediate recovery of all the skimmed off funds which should be paid out on a pari-passu basis to debenture holders and other secured creditors - with any shortfall in recovery should be made good by the Debenture Trustee.

    Sankar Ganesh

    1 month ago

    Catalyst Trustee is under slavery to DHFL and they informed nothing much can be done for the secured NCD if DHFL wants to repay in 10years later. Corrupted Indian government or FM won't do anything to protect small investors.

    Ramesh Poapt

    1 month ago

    when retail(read small) investor enters a AAA co; and suffers, it can be
    the best case for ML to intervene to safe guard such investors.

    Nagaraju Bommanahalli

    1 month ago

    In India nobody knows how Indian companies are doing fraud from the beginning to last ,for example a big business men will start the company in India as below .His companies actual value is Rs2000crores but with the help of the auditors,Banks,and chartered accountants he made his company s values to RS 6000 crores by book adjustment with bribe and he call IPO that is in share market and collect Rs10000 crores in share market, first he pumped 60%of money to foreign country in the name of business and will deposit most of the money in his name next he will file bankruptcy due to losses and will write off all the loans this is the business doing in India ED is doing drama ICICI Bank chandakochar is well known to all she done huge fraud in ICICI Bank, this drama of enquire is doing from past one year, but still she is not arrested, reasons In this icici bank scam all SEBI auditors ED RBI central government rating agencies big leaders of all parties involved.central government making all efforts to avoid arrest these fellows,if arrested all all foreign country become knows most of the Indian companies running on bogus and take away all foreign investment,then India become bankruptcy.This is well known by central government hence avoiding all efforts to arrest directors of icici bank chandakochar DHFL jetairways Videocon kingfisher airline PNB bank head [email protected] etc .even Vijaymalya kingfisher airline companies don't have single plane in his companies name but all banks gave Rs10000 crores money, same type loans gave to jet airways,DLF, Devan housing finance company,[email protected],fs,etc wait in few months most of the common people investment in icici bank NBFC PSU banks equity NCD mutul funds become Zero,All parties RBI officers, SEBI, etc are corrupt they are taking India towards bankruptcy

    REPLY

    Palash Nandi

    In Reply to Nagaraju Bommanahalli 1 month ago

    Modiji is running after Mallya, Chowksi for exradition but not taking any action who are inside the country and done bigger fraud.
    This is all drama, unfortunately common man will lose their hard earned money. I am pretty sure Pulwama type thing will soon take place to divert public attention. Modi is very shrewd and choron ka raja

    arjav patni

    1 month ago

    RETAIL BOND HOLDER HAS TO GIVE THEIR LIFEIF GOVERMENT NOT COME FORWARD WITH IEPF FUND AS IT IS MADE FOR INVESTOR PROTECTION,IF IT WILL NOT HELP IT SHOULD CATCH CRIMINAL ,THIS TYPE OF SCAM WITHOUT HELP OF RATING AGENCY,BOND TRUST AND SEBI NOT POSSIBLE

    REPLY

    Palash Nandi

    In Reply to arjav patni 1 month ago

    Not a single statement heard from any minister in this regard. A to Z sob chor hai. Age se kisi bhi private company me ek paisa bhi mat do. Humlog itna hi kar sakte hai. Dekhte hai public ke bina economy kaise chalta hai

    Nagesh K

    1 month ago

    Hard earned money of common man is invested in order to get better returns. request the central government , SEBI to initiate tough punishment on the looters of common men. Else, people will loose faith in the system.

    Arun M

    1 month ago

    The common man is cheated and the complete system is a scam and protects the interests of the looters. Surprised that the government has just failed to protect the interests of the retail holders.

    manas bhatnagar

    1 month ago

    Common man has lost complete trust on the whole system, noone can safeguard interest of retail NCD holders . Noone from retail side should buy even AAA rated NCD in future , these NCDs are secured but only by name . Everyone can get paid using money power and authority except small retail holder.

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