How about loosing 3.2bn $ in just a decade ?

Read the curious case of Singh brothers of once famous Ranbaxy Pharmaceuticals of India.

Born to a rich household, Singh brothers hit the jackpot in 2008 when they sold Ranbaxy Pharmaceuticals to Daichiko-A Japanese enterprise.The deal fetched them more than 8000 crore in cash which was billed heavily in favour of Singh brothers as it was forcasted that they minted atleast 2000 crore more then what they should have got.Singh brothers invested fast and invested heavy. They ventured into Healthcare with Fortis hospitals and Financial services with Religare, both of which were successful firms in the beginning.They also loaned about 3000 crore to this Spiritual Guru who runs a multi-million empire in Punjab,India. His name is Gurinder Singh dhillon and is also their maternal uncle.

The spiritual Guru also suggested them to invest in real estate in Delhi-NCR, which was at that time a budding housing community. Singh brothers invested heavy through Guru’s firms.At this point they took massive credit for all their investments.Recession of 2008 hit the market hard and the effects were seen on real estate in coming years, specially in Delhi-NCR as it’s households are mostly consumed by MNC employees.Most of the Singh brothers investment in Real Estate tanked or returned low. The money loaned to Guru was never returned. Once, cash heavy Singh brothers were now indebted to the neck.Daichiko which bought Ranbaxy sued them in court in the case of concealing information about certain regularities with the drugs. The case was decided in favour of Daichiko with 3500 crore to be given by Singh brothers.They had to sell their shares in both Fortis and Religare and are currently out of board from both the companies.Their ancestorial prime property in Lutyens Road – Delhi was sold to pay debts and bought by none other then their own uncle for 185 crore.

Currently, the Singh brothers are infighting with death threats shared to each other, Total debt is now 22000 crore that is plus 13000 crore the cash (9000 crore) they once had with no solution in sight. It will be interesting to see if they will ever be able to repay to creditors and come out of the hole they dug for themselves.