Fortis’ downfall; Baba burnt brothers’ billions
Once Ranbaxy was India’s top most pharma company. After the death of its founder, his sons took over the company. From then it was…
Once Ranbaxy was India’s top most pharma company. After the death of its founder, his sons took over the company. From then it was downhill. Once owners of the group, they are bankrupt today. And, a spiritual baba has a key role.
Summary:
Singh brothers had sold Ranbaxy for $ 2bn. After the sale they invested in Fortis Healthcare and Religare.
Brothers have also invested INR 2500 crore in businesses of their spiritual Guru Dhillon is founder of Radha Swami Satsang. He has built an European style commune in Punjab.
Brothers had appointed guru’s follower Sunil Godhwani as the head of their holding company RHC Holding company. They claim that it’s him, who invested money without informing them.
Singh brothers also invested INR 2000 crores in Guru’s real estate venture called Lowe. They also gave personal loans worth INR 500 crores to Guru’s family.
They had to write off the losses of INR 1200 crores. Banks also seized the assets such as their family mansion.
Finally they have sold of their stake in Fortis and Religare to IHH of Malaysia.
Worth your time: The Billionaires and The Guru: How a Family Burned Through $2 Billion