Success in the business world can be fleeting, and even India’s most powerful billionaires have faced downfall due to financial mismanagement, fraud, market disruptions, and legal troubles. While many Indian business tycoons built empires, some lost everything—going from billionaires to fugitives, debt-ridden entrepreneurs, or jailed executives.
This list explores 15 Indian billionaires who lost it all, analyzing their rise, the peak of their success, and the reasons behind their downfall.
1. Vijay Mallya – The King of Good Times Turned Fugitive
Vijay Mallya inherited United Breweries Group (UBG) and turned Kingfisher Beer into one of India’s most recognizable brands. In 2005, he launched Kingfisher Airlines, which aimed to offer luxury air travel. Mallya also owned an IPL team (Royal Challengers Bangalore) and was involved in Formula 1 racing. His lifestyle earned him the nickname “The King of Good Times.“
Peak:
By the late 2000s, his businesses flourished, and UB Group’s valuation was in the billions. Kingfisher Airlines expanded aggressively, acquiring Air Deccan, hoping to dominate the aviation sector.
Fall:
Mallya’s downfall began when Kingfisher Airlines suffered massive losses due to poor financial planning, debt accumulation (₹9,000 crore), and rising fuel costs. Despite bailouts and attempted restructures, Kingfisher shut down in 2012.
- Mallya defaulted on loans from multiple Indian banks.
- In 2016, he fled to the UK to escape fraud and money laundering charges.
- His assets, including luxury properties and shares, were seized, and he is fighting extradition to India.
2. Subrata Roy – The Sahara Empire’s Collapse
Subrata Roy founded the Sahara Group in 1978, which expanded into finance, real estate, media, hospitality, and sports. His empire included:
- Sponsoring the Indian cricket team
- Owning Pune Warriors IPL team
- Purchasing luxury hotels in New York & London
Peak:
Sahara became one of India’s most powerful business conglomerates, controlling vast real estate and financial assets.
Fall:
In 2012, SEBI cracked down on Sahara’s illegal bond scheme, alleging that it raised ₹25,000 crore from investors unlawfully.
- Roy was arrested in 2014 and jailed for fraud.
- Sahara’s assets were auctioned to repay investors.
- Most of the Sahara empire has collapsed, and Roy has been fighting legal battles ever since.
3. Anil Ambani – From Billionaire to Declaring Zero Net Worth
Anil Ambani, once richer than Mukesh Ambani, led Reliance Communications (RCom), Reliance Power, and Reliance Capital after the 2005 Reliance split. He aggressively invested in telecom, infrastructure, and finance.
Peak:
In the late 2000s, Anil was worth $42 billion and was among the richest Indians.
Fall:
- Jio’s entry destroyed RCom, leading to massive losses.
- He took huge loans for failing projects, leading to financial distress.
- In 2020, he told a UK court that he had zero net worth and defaulted on multiple loans.
Most of his companies collapsed, and he lost control over major assets.
4. Nirav Modi – The Billionaire Jeweler Who Fled India
Nirav Modi built a global luxury diamond empire, selling to celebrities and expanding to the US, UK, and Hong Kong.
Peak:
His company was valued in billions, and his stores were in high-end locations worldwide.
Fall:
In 2018, Nirav Modi’s ₹13,000 crore fraud with Punjab National Bank (PNB) was exposed. He used fake letters of credit to obtain loans illegally.
- Modi fled to the UK to escape arrest.
- His assets were seized, including luxury properties, jewelry, and art.
- He is fighting extradition from the UK.
5. Mehul Choksi – The Co-Conspirator of the PNB Scam
Mehul Choksi, Nirav Modi’s uncle, ran Gitanjali Gems, a major jewelry retailer in India.
Peak:
He owned 4,000+ jewelry stores, and his company was listed on the stock market.
Fall:
- Involved in the ₹13,000 crore PNB scam with Nirav Modi.
- Fled to Antigua to avoid arrest.
- His company went bankrupt, and he lost everything.
6. Rana Kapoor – The Rise & Collapse of Yes Bank
Rana Kapoor co-founded Yes Bank, which became one of India’s top private banks.
Peak:
Yes Bank was valued in billions, with Kapoor making aggressive corporate loans.
Fall:
- Gave risky loans to bankrupt companies.
- The RBI took over Yes Bank in 2020 due to a liquidity crisis.
- Kapoor was arrested for fraud and money laundering.
7. Ramalinga Raju – The Satyam Scam
Built Satyam Computers into a leading IT company, competing with Infosys and TCS.
Fall:
- In 2009, Raju admitted to inflating company revenues by ₹7,136 crore.
- Satyam’s stock crashed, and he was arrested for fraud.
Satyam was later sold to Tech Mahindra.
8. Harshad Mehta – The Infamous Stock Market Scammer
Harshad Mehta manipulated stock prices using banking loopholes, fueling a stock market boom in the early 1990s.
Fall:
- His ₹4,000 crore securities scam was exposed.
- Arrested and died in jail in 2001.
9. Ketan Parekh – The Second Market Manipulator
Like Harshad Mehta, Parekh rigged stock prices in the 1990s-2000s.
Fall:
- ₹1,000 crore fraud exposed.
- Convicted and banned from trading.
10. D. S. Kulkarni – The Real Estate Ponzi Scheme That Collapsed
D. S. Kulkarni, often called DSK, was a prominent real estate developer in Pune. His company, DSK Developers, was known for large-scale residential and commercial projects across Maharashtra.
Peak:
At its height, DSK Developers had multiple high-value projects, attracting significant investor money through fixed deposit schemes, promising high returns.
Fall:
- DSK misused investor funds, using a Ponzi scheme model where new investments funded previous investors’ returns.
- ₹2,043 crore fraud case led to massive defaults.
- He was arrested in 2018, and his company collapsed, leaving thousands of homebuyers and investors stranded.
11. Jignesh Shah – The NSEL Scam That Rocked Indian Markets
Jignesh Shah founded Financial Technologies India Ltd (FTIL) and the National Spot Exchange Limited (NSEL), introducing electronic commodity trading in India.
Peak:
- FTIL was seen as a game-changer in India’s financial sector.
- NSEL grew rapidly, handling huge trading volumes in commodities like gold, silver, and agricultural products.
Fall:
- The ₹5,600 crore NSEL scam was exposed when it was found that NSEL was facilitating fake trading contracts.
- When the scam came to light, investors lost huge amounts, leading to government intervention.
- Jignesh Shah was arrested and banned from the financial sector.
- His companies were shut down, and his wealth evaporated.
12. Shivinder & Malvinder Singh – The Ranbaxy & Fortis Scandal
Brothers Shivinder and Malvinder Singh inherited Ranbaxy, one of India’s largest pharmaceutical firms. They also ran Fortis Healthcare and Religare Enterprises.
Peak:
- Ranbaxy was a leader in India’s pharma industry and was sold to Daiichi Sankyo for $4.6 billion in 2008.
- The brothers invested in healthcare and financial services, aiming to build a multi-industry empire.
Fall:
- Ranbaxy was accused of selling substandard drugs, leading to legal battles and heavy penalties.
- Daiichi Sankyo sued them, accusing them of hiding critical data during the sale.
- Their financial mismanagement in Fortis and Religare led to a ₹2,400 crore fraud investigation.
- Both were arrested in 2019, and their empire crumbled, with Fortis being taken over by new investors.
13. Vikram Kothari – The Rotomac Pen Scam
Vikram Kothari was the owner of Rotomac Pens, once a well-known Indian stationery brand competing with Reynolds and Cello.
Peak:
- Rotomac became a trusted brand for pens in India.
- The company expanded into exports and international markets.
Fall:
- Kothari took loans worth ₹3,695 crore from multiple Indian banks but defaulted on payments.
- The CBI accused him of bank fraud, and Rotomac went bankrupt.
- He was arrested in 2018, and his assets were seized.
14. Gautam Kundu – The Rose Valley Ponzi Scheme
Gautam Kundu’s Rose Valley Group operated in real estate, tourism, media, and finance, promising high returns to investors.
Peak:
- The group attracted lakhs of investors, growing rapidly in Eastern India, especially in Bengal and Odisha.
- It expanded into television, film production, and resort businesses.
Fall:
- A ₹17,000 crore Ponzi scheme was uncovered, revealing that Rose Valley had no sustainable business model.
- Kundu was arrested in 2015, and the government seized Rose Valley’s assets.
- Millions of investors lost money, similar to the Saradha scam.
15. Nakul Sekhseria – The Collapse of Rei Agro
Nakul Sekhseria was the founder of Rei Agro, once India’s largest basmati rice processing company.
Peak:
- Rei Agro dominated the basmati rice export market, with revenues reaching thousands of crores.
- It was a market leader in premium rice brands.
Fall:
- The company took heavy loans to expand but defaulted, leading to huge financial losses.
- ₹5,700 crore worth of bank fraud was uncovered.
- Rei Agro collapsed, Sekhseria lost everything, and legal actions were initiated against the company.
Final Thoughts: Lessons from These Business Collapses
The rise and fall of these 15 Indian billionaires serve as a lesson on:
- Poor Financial Management Leads to Disaster – Over-expansion, risky loans, and Ponzi schemes cause businesses to collapse.
- Corporate Fraud and Corruption End in Ruin – Misusing investor money or committing fraud eventually leads to legal troubles and asset seizures.
- Overdependence on Debt Is Dangerous – Many of these tycoons borrowed heavily without sustainable revenue, leading to bankruptcy.
- Regulatory Violations Have Consequences – Businesses that ignore compliance and ethical standards face legal action and loss of investor trust.
- Government Policies & Market Changes Can Kill Businesses – Regulatory crackdowns (e.g., SEBI vs. Sahara, RBI vs. Yes Bank) can dismantle even the biggest companies.
