Darshanam Mogulaiah, 73, a Padma Shri awardee in 2022, has been forced to become a daily wager after he spent all his savings and award money on lavish marriage ceremonies for his children, bought a plot of land and began constructing a house that is left half-complete.

Mogulaiah, who hails from the southern Indian state of Telangana, received Rs 1 crore in award money from the state government for his outstanding contribution to tribal music after then-president Ram Nath Kovind bestowed on him the prestigious Padma Shri award.

Mogulaiah was also provided with a monthly honorarium of Rs 10,000 in his honour, although he now claims the money had stopped coming sometime in September or October 2023.

From Successful Artiste To A Life Of Misery 

When the artiste was recently found working as a daily wage earner at a construction site in Turkayamjal, near Hyderabad, people were reportedly shocked and confused at his drastic change in economic condition from a celebrated artist to a life of misery and distress.

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Known as “Kinnera Mogulaiah” in his hometown, the 73-year-old artiste now struggles to meet even two square meals daily. So, what has led to his financial disaster? It has been reported that Mogulaiah spent all his money to marry off his two children. He also bought a piece of land in Turkayamjal, where he was constructing a house, but it remains incomplete.

Mogulaiah’s story evokes sadness and frustration. When a great artist struggles with daily needs, it calls for deep introspection regarding our money habits. Mogulaiah’s abrupt descent into financial ruin was his lack of financial literacy and should serve as an eye-opener for people.

How Can He Come Out Of This Situation?

Says Abhishek Kumar, a Securities and Exchange Board of India (Sebi)-registered investment advisor and founder and chief investment advisor of SahajMoney.com, a financial planning firm: “The family has been pushed against a wall, and desperate times require tough measures. An unfinished real estate project and children’s marriage have eaten away their corpus. We would advise them to unlock the value already embedded in the real estate project and involve a party that could provide capital to complete the project so that they can either generate regular rental income or sell the completed project to others.”

Adds Shweta Jain, founder of Investography Pvt. Ltd, an investment firm: “It’s unfortunate that he’s in a situation like this. But this sounds familiar as many retirees use their retirement funds to build or buy houses or spend the rest on children and become dependent on them or others. It is recommended that they create a cash flow by investing in safer avenues like senior citizen savings schemes, post office monthly income schemes, etc., to ensure cash flow and fixed return and invest a part in equities to beat inflation, which would be for the long term. They often forget that even when they retire, they still have decades to invest and stay invested. Individual allocations depend on the family, requirements, corpus, etc., but a 20 per cent investment in equity and 40 per cent in debt is the bare minimum.”

Says Abhijit Talukdar, a Sebi-registered investment advisor: “It appears that Mogulaiah spent the award money on his dream (a house) and his responsibilities (marrying off his children) without planning for his needs and dependents. This is a case of failing to prioritise his goals.”

How To Allocate Assets For Regular Cash Flow?

Talukdar explains, “If a person has Rs 1 crore and is looking for regular income, he or she should invest in low or zero-risk instruments, such as fixed deposits or short-term debt funds,” depending on the person’s risk appetite. He stresses that a financial strategy based on individual risk tolerance is vital, and one must also not forget the aspect of higher life expectancy.

Kumar suggests a comprehensive bucket strategy for withdrawals over the next 30 years, assuming the person has Rs 1 crore. He advises, “One should decide on asset allocation for the next 30 years. I would suggest a bucket strategy where the retirees create three ‘time’ buckets for each decade. This way, a retiree can plan their cash flow need and avoid a life of penury due to lack of money.”

Mogulaiah’s story suggests that he didn’t judiciously use his money nor invest in assets which could have ensured regular cash flows for his survival. Due to his lack of financial knowledge, the Padma Shri awardee’s life has gone from a life of plenty to a life of poverty.

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The Padma Shri Awards were instituted in 1954, and since then, 3,531 people have been bestowed with the honour. The government also awards the Padma Bhushan and Padma Vibhushan to people every year for their outstanding contributions in various fields.