The Rapid Rise and Spectacular Fall of Anil Ambani: From Billionaire to Bankruptcy

Anil Ambani is an Indian businessman who was once considered one of the richest men in the world, with an estimated net worth of over $40 billion at his peak. He is the younger brother of Mukesh Ambani, the chairman of Reliance Industries, one of India's largest conglomerates.

Anil Ambani started his career in the 1980s, working for Reliance Industries, where he was responsible for expanding the company's presence in telecommunications, financial services, and infrastructure. In 2005, when Reliance Industries was split into two separate companies, Anil Ambani inherited Reliance Communications, which was focused on telecommunications and internet services.

Under Anil Ambani's leadership, Reliance Communications expanded rapidly, becoming India's second-largest mobile network operator by subscriber base. However, the company also took on a significant amount of debt to fund its growth, and in the early 2010s, it began to struggle financially. In 2017, the company defaulted on some of its debt, and in 2019, it filed for bankruptcy.

Anil Ambani's personal fortune was also impacted by the financial troubles of Reliance Communications. In 2008, he was listed by Forbes as the sixth richest person in the world, with a net worth of $42 billion. However, by 2019, his net worth had fallen to zero, according to Forbes. He faced lawsuits from various creditors, including telecom equipment supplier Ericsson, which had taken legal action to recover unpaid dues from Reliance Communications.

Anil Ambani's troubles were not limited to Reliance Communications. In 2019, he was also held in contempt of court by the Indian Supreme Court for failing to pay a debt of $77 million to Ericsson. He was given a deadline to make the payment or face a jail term, and eventually made the payment with the help of his brother Mukesh Ambani.

In 2020, Anil Ambani was also ordered by a UK court to pay $716 million to three Chinese banks that had filed a lawsuit against him for unpaid debt. Anil Ambani disputed the claim, saying that he was not personally liable for the debt, but the court ruled against him.

In summary, Anil Ambani's fall from being one of the richest people in the world to facing financial difficulties and legal challenges can be attributed to the struggles of Reliance Communications, the company he headed, which took on a large amount of debt to fund its expansion and eventually filed for bankruptcy.

Anil Ambani's bankruptcy is closely linked to the financial difficulties of Reliance Communications, the telecommunications company he headed. In 2019, Reliance Communications filed for bankruptcy after it failed to repay its debt to various creditors, including banks and bondholders.

As part of the bankruptcy proceedings, Anil Ambani appeared before India's National Company Law Tribunal (NCLT) in March 2020. He testified that his personal net worth was zero, and he had no assets to give to the creditors of Reliance Communications. He also said that he had not taken a salary from the company for two years and that his expenses were being borne by his wife and family.

Anil Ambani's testimony was challenged by the committee of creditors, who argued that he had received money from other sources and had transferred assets to family members to shield them from being seized by the creditors. They also alleged that he had breached a personal guarantee he had given to the State Bank of India for a loan taken by Reliance Communications.

In June 2020, the NCLT appointed a resolution professional to oversee the bankruptcy proceedings of Reliance Communications. The resolution professional was tasked with preparing a resolution plan for the company, which would involve the sale of its assets to pay off the creditors.

Anil Ambani and his lawyers challenged the appointment of the resolution professional, arguing that it violated his right to due process. They also argued that he had not given any personal guarantee to the creditors and that his liabilities were limited to the extent of his shareholding in Reliance Communications.

In February 2021, the Delhi High Court ruled in favor of the creditors, upholding the appointment of the resolution professional and rejecting Anil Ambani's arguments. The court held that he was a guarantor for the loans taken by Reliance Communications and that his personal assets could be seized to repay the creditors.

As of early 2023, the bankruptcy proceedings of Reliance Communications are ongoing, and the resolution professional is still working on a resolution plan for the company. Anil Ambani, meanwhile, continues to face legal challenges from various creditors and has reportedly sold some of his personal assets to raise funds.