Year-Ender 2023: 5 Big Controversies Of India's Business World

From financial scandals to hiring scams, India witnessed its share of corporate controversies in 2023. Here are the five controversies that created headlines this year.

The Raymond family feud began in November 2023 with billionaire textile tycoon Gautam Singhania announcing his separation from Nawaz Modi Singhania after 32 years of marriage.

Reports have surfaced that Nawaz has demanded a significant portion of Gautam Singhania's wealth as part of the divorce settlement. Following the news of the divorce, the company's stock price initially plunged and the public scrutiny surrounding the Singhania family cast a shadow over the brand.

Gautam Singhania also has a soured relationship with his father Vijaypat Singhania since early 2015. The senior Singhania has publicly backed his daughter-in-law, stating he would support Nawaz if needed.

In late June, reports surfaced of an alleged "recruitment scam" in the country's largest IT services company, Tata Consultancy Services (TCS). Staffing firms were alleged to have indulged in malpractices in collusion with TCS staffers.

In a letter to the CEO and COO of TCS, a whistleblower had alleged that a senior official from the company's Resource Management Group, which is tasked with recruiting contractual employees, had been taking bribes from staffing firms for several years.

Following an investigation launched in June, TCS found 19 employees to be involved in the bribes-for-jobs scam.

“Sixteen employees have been separated from the company for code of conduct violations, and three employees have been removed from the resource management function,” TCS stated in an exchange filing.

On May 3, budget carrier Go First filed for bankruptcy at the National Company Law Tribunal. With nearly half its fleet grounded due to engine woes and mounting losses, the airline was no longer able to sustain operations. The airline stopped flying on May 3.

The Wadia Group airline blamed it on American engine manufacturing company Pratt & Whitney. It stated the faulty engines supplied by the company had led to its fleet being grounded. Faced with financial headwinds and engine woes, Go First is undergoing an insolvency resolution process.

Once hailed as the poster boy of India's edtech industry, Byju faced a series of challenges, ranging from Enforcement Directorate raids and slashed valuations to legal battles with lenders, widespread layoffs, delayed results, and more.

ED has issued a show cause notice of Rs 9,300 crore to Byju's founder, Byju Raveendran, and its parent company for alleged violations of Foreign Exchange Management Act. Byju's has terminated around 3,500 employees in the current fiscal year.

The tutorial platform is exploring options to sell its US-based kids' digital reading platform, Epic! The crises marks a significant low for Byju's that was one of the big players in India's edtech space.

Dabur India, the 138-year-old FMCG major managed by the Burman family, was in the news over its tussle with financial services firm Religare Enterprises. The dispute is over the plan to acquire Religare. The Burman family is the single-largest shareholder in Religare with a 26.5% stake. After the Burmans made an open offer for an additional 26%, independent directors of Religare lodged a fraud complaint with SEBI and the RBI against the Dabur promoters.

The Burmans, on their part, have raised concerns about governance within Religare. They have claimed that Religare Chairperson Rashmi Saluja sold company shares worth about Rs 150 crore immediately after learning about the open offer. Religare has denied these allegations.