In my last 12 years of journey of entrepreneur, I never felt so disbursed /depressed, the way I am feeling since last 2 days. There are 2 reasons for this, first one that he was a successful entrepreneur from last more than 30 years, he nurtured a multi-national brand and he was having more assets than liabilities. Second reason is his father-in-law, S M Krishna, was ex Chief Minister of Karnataka and still he was facing so much pressure from lenders/financial institutions or from Govt Authorities, so imagine what must be going through to a normal entrepreneur in India!
Any entrepreneur whether running set up of 5 employees or 5000 or 50,000, directly and indirectly contributing in the growth of country on the cost of day to day pain to run the company. Any business is impacted by internal or external factors which are beyond the control of entrepreneur and he must keep running show irrespective of this.
One side Supreme court is asking Noida Authority in the judgement of Amrapali case that dues of approx. 3000 crore should come in the end if any money is pending after construction / Asking banks to wait or write off their loans in books as delivery to the customers is first priority and I agree that it should be but what about then Vijay Mallaya case.
He is ready to pay principle amount back to banks but Govt/Banks not ready to even leave interest portion in this case however normal NPA cases are being settled in 50% very easily. Why different types of rules in the same country for different business model??
Jet Airway Vs Air India Story: Naresh Goel is failure as he could not put company in profit. He was the person who started Jet Airway in 1993 when most of Indians were not aware about what air flight was. He was pioneer in this industry for nearly 2 decades and in 2005, Forbes magazine made him in the list of richest person of India.
With time competitions started coming and rates started coming down and it was across the industry that all airlines businesses started bleeding so Jet Airways was not big exception. Govt stopped him flying out of India and it was big news but what about Air India which is controlled by Govt of India and having losses of more than 50,000 crores and still operating and incurring losses on daily basis which is more than the subsidy to farmers by Govt.
Who is responsible of this losses and why there is no one behind Jail or harassed by Govt departments or by lenders for all these losses. In any industry, if 6 out of 10 people are in loss that means that industry is in loss and we together need to put efforts to revive that.
BSNL Losses: one time big time success story of Indian PSU, BSNL is now past and every day/month/year it is making losses but who is responsible for that. It is making approx. 7500 Cr losses every month and according to the reports, FY 2008 was the last year of positive operating profit (EBIT) for BSNL and since then, the company has posted a cumulative EBIT loss of Rs 82,000 crore from FY 2009 to FY 2018.
Why no one in any Government from 2008 to till date is not responsible for this loss ? Why someone did not go behind bar for these losses or committed suicide or no pressure from anyone to the extreme. Because it is Govt organization and they have liberty to be at loss because it is pure tax payer’s money and no one can be held responsible for this.
But private entrepreneurs who are in loss, can’t be saved by any means, offering any support or any other system otherwise departments like; GST / income tax/ PF/ Labour dept/ ESI etc. will come and they will screw you from left to right. If by any chance you are in stage to survive then bankers /private lender /equity partners will put pressure on you and will try to make your life hell.
Real Estate and Root problem:
Being in Real estate from last 12 years and too much external factors like; demonetization/ notebandi, RERA, GST, financial institutes stopped funding to real estate, Govt, customers, and lenders want that show must run but nobody is having answer, HOW ??
After Notebandi/ RERA / GST approx. 150 builders across India (As per report shared on one TV channel) are either behind jail or facing cases or gone underground. How many builders were behind jail before all these events? That means whole real estate industry is facing major problems and it is not mistake/blunder of any individual but industry needs help from Govt / Authority / Tax department/ Financial lenders/ Customers/ Private financier to put things back on track.
Sending people in Jail or people committing suicide or departments harassing owners is not a solution for all these problems. We all need to have patience and support each other to have eco-system to survive from this tough time.
Right now real estate needs money flow either from financial institutes with strict mechanism to have proper utilization of this money for development of project / authorities to have patience and give relaxation in due payments / Customers to give times to complete construction / Authority likes RERA to have team to watch project progress / Departments to understand problems and giving time for solutions of money flow. With this approach not 100% but atleast 80% projects will be delivered and things will be back on track.
This suicide is eye opener for everyone that how much pressure he must be having as we all know that this is beautiful life given by GOD and we do not know what will happen after this so ending life by self is not easy decision and he must be going through a lot pain which was more than ending his life.
There are lot of programs these days for employee stress management or personal stress management but how many of us aware any program of stress management for entrepreneur /owners because this is assumed by employees/customers/investors/ govt authority that entrepreneur is JAMES BOND and he will have solutions of all problems around him.
But it is not because end of the day he is also a general human being and his sin is that he had dream to be big and have a brand which can last longer than his life. It is matter of fact that most of the entrepreneurs keep paying cost of this dream for years to years.
Even in his last message, he was worried about his company, employee and people associated with this and even shared the list of people whom he needs to pay from his assets, it shows that how true entrepreneur he was throughout his life.
In my view, it is tough to decide whether it is suicide of an entrepreneur or murder of a true entrepreneur by lenders/Govt system but yes a true eye opener for every entrepreneur and Govt agencies that on what directions we are going.
Hope that his second layer / employees will make CCD a much bigger name in coming years and it will be true respect to him and his brand.