Archive · 21 Aug 2025
Investor Lessons: Corporate Collapses of DHFL, BPSL, and Jet Airways
Several big companies in India, like DHFL, Bhushan Power, and Jet Airways, got into big trouble.
DHFL faked its numbers and gave out bad loans.
Bhushan Power got into debt and had fraud issues.
Jet Airways spent too much and owed a lot of money.
These companies failed because of debt, fraud, and bad decisions.
Investors should watch for rising losses, a lot of debt, and any trouble with the law.
If things look bad, it's better to sell to avoid losing money.
Also, it's important not to put all your eggs in one basket.
DHFL, once India's third-largest housing finance company, collapsed due to fraud and bad loans.
Bhushan Power and Steel Ltd. faced multiple bankruptcy proceedings and legal battles involving alleged fraud.
Jet Airways, a prominent airline, failed due to overexpansion, debt, and money-laundering allegations.
Rising losses, mounting debt, and high promoter pledges are key warning signs for investors.
Diversifying investment portfolios can help mitigate losses from unavoidable failures.
- Who
- DHFL, Bhushan Power and Steel Ltd., and Jet Airways
- What
- Multiple prominent companies collapsed due to financial issues.
- When
- DHFL's issues arose around 2018, Jet Airways in 2019, and Bhushan Power had repeated issues.
- Where
- India
- Why
- Due to fraud, debt, poor financial management, and overexpansion.
Investors' Perspective
Company Management
Risks and Early Warnings
Investors' Perspective
Investors risk losing their investments as a company's financial health deteriorates.
Company Management
Early warning signs such as rising losses, mounting debt, and litigation involving fraud should be noted.
- DHFL's peak loan book
- ₹1 trillion
- DHFL merger
- Merged with Piramal Capital and Housing Finance Ltd in 2021
- Bhushan Power debt to banks
- ₹47,000 crore
- JSW Steel's BPSL acquisition
- Nearly ₹20,000 crore in 2021
- Jet Airways debt to lenders
- ₹8,500 crore
- Jet Airways debt to employees/creditors
- ₹16,500 crore