Being Human

‘Being Human’—the fashion and charitable brand founded by Bollywood actor Salman Khan—has long been celebrated for its philanthropic mission and stylish merchandise. However, beneath the brand’s polished exterior lies a complex web of legal disputes, financial controversies, and operational challenges that have raised questions about its transparency and ethical practices. This report delves into the critical issues surrounding ‘Being Human,’ examining the allegations, media coverage, and the brand’s response to these concerns.

Legal Challenges and Fraud Allegations

In July 2021, ‘Being Human’ found itself embroiled in a legal controversy when the Chandigarh Police summoned Salman Khan, his sister Alvira Khan, and several others associated with the brand in connection with an alleged fraud case. A local businessman, Arun Gupta, accused the brand’s licensee, Style Quotient, of failing to honor commitments related to stock delivery and promotional support for a ‘Being Human Jewellery’ store he had invested in. While Style Quotient issued a statement denying the involvement of Salman Khan and Alvira Khan, the incident highlighted potential operational mismanagement and raised concerns about the brand’s oversight mechanisms.

Financial Mismanagement and Money Laundering Allegations

Further scrutiny of ‘Being Human’ intensified with the Enforcement Directorate’s (ED) investigation into Mandhana Industries Ltd (MIL), the company responsible for manufacturing and retailing ‘Being Human’ merchandise. In October 2024, the ED filed a chargesheet in a ₹975 crore money laundering case, naming three female family members of MIL’s promoters. The charges allege that these individuals were involved in the concealment and utilization of proceeds from crime, including the siphoning off of company loan funds through layering and fraudulent transactions.

The ED’s investigation revealed that the proceeds of crime were concealed through layering and moved multiple times via bank accounts of different bogus sister concerns of MIL and personal bank accounts of members of the Mandhana family. Large amounts of these proceeds were allegedly utilized by the Mandhana family in paying off personal debts, investing in the share market, and purchasing immovable properties and jewelry.

Transparency Concerns in Charitable Operations

Despite its charitable branding, ‘Being Human Foundation’—the philanthropic arm of the brand—has faced criticism regarding the transparency of its financial operations. The foundation reportedly receives only 8–10% of the revenue generated from the sale of ‘Being Human’ merchandise, raising questions about the allocation of funds and the actual impact of its charitable initiatives.

Additionally, the foundation’s reliance on a licensing agreement with Mandhana Industries for the use of the ‘Being Human’ brand name has led to concerns about the independence and effectiveness of its charitable activities. The limited share of merchandise sales directed towards the foundation has prompted calls for greater accountability and transparency in its operations.

Operational and Financial Instability

The operational challenges faced by ‘Being Human’ are further compounded by the financial instability of its associated entities. Mandhana Retail Ventures Ltd (MRVL), the retail arm responsible for the brand’s physical stores, has experienced declining stock prices and operational risks following a demerger from Mandhana Industries. The demerger has led to concerns about the sustainability of the brand’s retail operations and its ability to maintain profitability in a competitive market.

The widening spread observed in the financial performance of ‘Being Human Clothing’ suggests cautious positioning within the broader market. This divergence may reflect concerns specific to the brand’s operations or financial strategy, indicating potential vulnerabilities that could impact its long-term viability

Media Coverage and Public Perception

The media’s portrayal of ‘Being Human’ has been a mix of admiration for its charitable endeavors and scrutiny over its financial and operational practices. While the brand has garnered positive attention for its philanthropic initiatives, the recent legal and financial controversies have cast a shadow over its public image. The media’s coverage of these issues has been instrumental in bringing to light the challenges faced by the brand, prompting calls for greater transparency and accountability.

Conclusion

‘Being Human’ presents a complex case of a brand that intertwines fashion with philanthropy. While its charitable intentions are commendable, the legal disputes, financial controversies, and operational challenges it faces cannot be overlooked. The brand’s association with Mandhana Industries, the allegations of financial mismanagement, and the limited transparency in its charitable operations raise significant concerns about its ethical practices and commitment to its philanthropic mission.

For ‘Being Human’ to restore public trust and credibility, it must address these issues head-on. This includes providing clear and transparent financial disclosures, ensuring that a substantial portion of its revenue directly supports charitable initiatives, and implementing robust governance structures to oversee its operations. Only through such measures can ‘Being Human’ hope to align its brand image with its purported mission of making a positive impact on society.