Leather business on downturn, Deys took 20 crore loan from six lenders

Kolkata: The Dey family's tragic decision appears to have been driven by overwhelming debts, intensified by the decline in leather goods business. Financial documents from the Dey residence and factory reveal that the brothers had accumulated loans of Rs 18 crore-Rs 20 crore since Dec 2023. Sources said the business went into such a tailspin that Pranay Dey and his brother Prasun had problems making payments to bigger vendors even after taking loans. The family sought loans from six financial institutions and banks, even placing their Tangra property as collateral to address cash flow issues. Despite these measures, the brother struggled to pay major suppliers. Their decision not to renew the trade licence in the previous year suggested they anticipated the business's collapse. The closure of their Bolpur silk export venture further illustrated their financial difficulties. Despite attempts to diversify into new business areas, these ventures proved unsuccessful, worsening their debt situation. However, the Dey family did not cut down on expenses even as several of the 74 workers on their payroll – around 50 odd still works with them – had their dues held up. A few luckier ones though faced no trouble and kept believing that better days lay ahead.The family also maintained their lifestyle, continuing with holidays, acquiring a new vehicle about 18 months ago, and conducting religious ceremonies, possibly hoping for improvement.The authorities have discovered that the Deys operated a facility in North 24 Parganas and are investigating it. They also have a property in Santiniketan.Manoj Gupta, a leather supplier associated with the Dey family since 2020, maintained business relations until 2023. While the brothers cleared 70% of his dues by June 2024, the final payment remained outstanding when the ‘suicide bids' occurred."I don't know the inner workings of their business, but I heard they were sourcing goods from elsewhere. The business didn't shut down, and they never treated me badly. They were always cordial even when they faced huge odds," recounted Gupta.Kolkata: The Dey family's tragic decision appears to have been driven by overwhelming debts, intensified by the decline in leather goods business. Financial documents from the Dey residence and factory reveal that the brothers had accumulated loans of Rs 18 crore-Rs 20 crore since Dec 2023. Sources said the business went into such a tailspin that Pranay Dey and his brother Prasun had problems making payments to bigger vendors even after taking loans. The family sought loans from six financial institutions and banks, even placing their Tangra property as collateral to address cash flow issues. Despite these measures, the brother struggled to pay major suppliers. Their decision not to renew the trade licence in the previous year suggested they anticipated the business's collapse. The closure of their Bolpur silk export venture further illustrated their financial difficulties. Despite attempts to diversify into new business areas, these ventures proved unsuccessful, worsening their debt situation. However, the Dey family did not cut down on expenses even as several of the 74 workers on their payroll – around 50 odd still works with them – had their dues held up. A few luckier ones though faced no trouble and kept believing that better days lay ahead.The family also maintained their lifestyle, continuing with holidays, acquiring a new vehicle about 18 months ago, and conducting religious ceremonies, possibly hoping for improvement.The authorities have discovered that the Deys operated a facility in North 24 Parganas and are investigating it. They also have a property in Santiniketan.Manoj Gupta, a leather supplier associated with the Dey family since 2020, maintained business relations until 2023. While the brothers cleared 70% of his dues by June 2024, the final payment remained outstanding when the ‘suicide bids' occurred."I don't know the inner workings of their business, but I heard they were sourcing goods from elsewhere. The business didn't shut down, and they never treated me badly. They were always cordial even when they faced huge odds," recounted Gupta.
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