It is generally a trend seen that the third generation of business families usually does not prosper. Ofcourse their are always a few exceptions.
By the by if you have not read my posts on the stories of Anil Ambani and vijay Mallya read it by clicking the links below.
Now comming into our topic, the brothers who lost everything.
To know about them we should travel back a little, pre- partition of India.
Bhai Mohan Singh was a business man in Rawalpindi, today's pakistan.After the partitial he cam to India and settled in the national capital - Delhi. Bhai Mohan sing acquired the company from his cousins, at the time of his aqusition it was highly debt ridden..Bhai Mohan Singh revived the pharmaceutical company.
After his death, the company was carried on to his heir and son Parvinder singh. By then Ranbaxy was a well set up business. The famous singh brothers were the sons of Parvinder singh. They were born with high financial security and recived formal education from prestigious institutes abroad.
By 1999 Parvinder had 33.5 stake in Ranbaxy, upon his death the stake was passed on to his sons Malvinder and Shivinder.
The singh brothers ran the business till 2008, and at the peak time if their thriving business,the brothers who had the majority control stake in Ranbaxy sold it to Daiichi sankyo- a Japanese pharma company.
The sale earned the brothers an amount around 10000 crores. Thing we're looking pretty good. They used almost 2000 crores to pay off their debts. And started two new ventures Religare and Fortis healthcare.
The brothers were spiritually related to Gurinder Singh Dhillion ,a spiritual leader popularly known as Baba. According to sources the allegedly transferred 2,700 crores to Baba and his family.
Yet their new ventures were thriving.at a time, Religare was considered the largest Non banking financial company in country, and Fortis was the the largest chain of hospitals in India.
But there huge expansion increased their debts rapidly. And Daiichi sued them for hiding facts and singh brothers were ordered to pay $500 million to them.
The mounting debts forced them to sell their stakes and finally loosing control over them. They were arrested for financial crimes.
Now both the brothers are busy with lawsuit s that they filed against each other and those failed against them.