The contrasting treatment of wealthy businessmen in India and China has renewed questions about corporate accountability, debt recovery and the influence of powerful business groups on economic policy.
The debate follows the sentencing of Chinese property tycoon Hui Ka Yan to life imprisonment and the approval in India of a resolution plan that would allow Zee founder Subhash Chandra to settle only a tiny portion of his outstanding debt.
China takes a tougher stand on billionaire wrongdoing
Hui Ka Yan, once China’s richest person, was sentenced by the Shenzhen Intermediate People’s Court on August 20 for offences including bribery, swindling public funds and fraud. His personal property was confiscated, while companies once controlled by him were fined more than $2 billion.
The action reflects China’s increasingly tough approach towards some of its wealthiest business figures, particularly when authorities believe corporate misconduct or financial wrongdoing has occurred.
India’s Chandra case sparks creditor concerns
In India, the National Company Law Tribunal approved a resolution plan for Subhash Chandra, who owed creditors, including state-owned companies, Rs 22,007 crore.
Under the approved plan, creditors would receive slightly more than Rs 6 crore, a fraction of the amount owed. Some creditors have questioned the process, alleging connections among people involved in voting on the plan and claiming that Chandra’s assets may have been underreported.
The case has generated public criticism because some of the affected lenders are state-owned institutions, meaning losses can ultimately affect public finances.
Billionaire power raises a bigger economic question
The controversy extends beyond individual debt cases. Critics argue that increasing concentration in sectors such as aviation, telecom, cement, steel and tyres could weaken competition and create an uneven playing field.
Economists Arvind Subramanian and Josh Felman have described concerns around the influence of politically connected large businesses, while former Reserve Bank of India Deputy Governor Viral Acharya has warned about the risks of crony capitalism.
The comparison between India and China therefore raises a broader question: how can India encourage successful businesses while ensuring that markets remain competitive and powerful companies remain accountable?
For a growing economy, the challenge is not simply creating billionaires, but ensuring that growth, investment and opportunity remain accessible beyond the most powerful business groups.