Anil Ambani: How the world’s former 6th richest man became bankrupt, banned in just over a decade
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Anil Ambani: How the world's former 6th richest man became bankrupt, banned in just over a decade 2
SEBI has banned Anil Ambani and 24 other entities from the securities market for five years.
The ban is due to allegations of fund diversion at Reliance Home Finance (RHFL), where Ambani, as former chairman, was found to have orchestrated a fraudulent scheme.
SEBI’s 222-page order detailed that Ambani used his position and indirect shareholding in RHFL to siphon off funds disguised as loans to entities linked to him.
SEBI also fined Ambani ₹25 crore and imposed penalties on other individuals and entities involved.
The order highlighted that loans were given to companies with minimal assets or revenue, raising concerns about the legitimacy of these transactions.
Despite the RHFL Board’s directives to stop these practices, the company’s management ignored them, leading to governance failures.
Supreme Court Decision:
Earlier this year in April, the Supreme Court overturned an ₹8,000 crore arbitral award granted to a firm within Ambani’s group.
This decision involved a concession agreement between Delhi Airport Metro Express Pvt. Ltd. (DAMEPL), a Reliance Infrastructure subsidiary, and Delhi Metro Rail Corporation (DMRC).
The court ordered DAMEPL to refund approximately ₹3,300 crore previously paid.
Anil Ambani’s Financial Troubles:
Anil Ambani’s financial decline has been ongoing. In February 2020, he declared bankruptcy in a UK court amid multiple legal and financial challenges.
In 2008, Ambani was valued at $42 billion and ranked as the sixth richest person globally, but his fortunes have since sharply declined.
Financial troubles worsened when his telecom venture, Reliance Communications (RCom), accumulated substantial debt and entered insolvency proceedings in 2019.
That same year, Ambani faced legal pressure when the Supreme Court threatened to imprison him after RCom failed to pay ₹550 crore to Ericsson AB’s Indian unit.
Mukesh Ambani, his brother, stepped in at the last minute to provide the necessary funds, preventing Anil Ambani’s imprisonment.
