From Billionaire to Legal Battles: The Rise, Fall, and Scrutiny of Anil Ambani

The prominent billionaire, Anil Ambani who is also the head of the Reliance Group is presently experiencing a dramatic fall from grace, marked by financial troubles, legal battles, and a significant decline in his net worth as well.

The Enforcement Directorate (ED) carried out several raids at over 35 premises and 50 companies which are linked to Anil Ambani's Reliance Group (RAAGA Companies), in connection with a money laundering probe related to the Yes bank loan fraud case on Wednesday.

ED's Scrutiny On Anil Ambani

These raids were followed by two FIRs registered by the CBI and inputs shared by agencies including the Securities and Exchange Board of India (Sebi), the National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA).

As per the ED, preliminary investigations indicate that loans worth around Rs 3,000 crore, sanctioned by Yes Bank between 2017 and 2019, were allegedly diverted to shell firms and other group entities as well.

There is also evidence wherein investors have found that the Yes Bank officials have possibly been bribed, including its promoter.

The agency has also pointed out several lapses in the approval process of Yes Bank, which includes back-dated credit documents, absence of due diligence and loans given to firms with weak financials and common directors.

Additionally, several violations have also been found with regards to loan terms, evergreening of accounts, and instances where the disbursal occurred on the same day as or before the approval of the loan.

According to the ED, more than 50 companies and 25 individuals are under the watch. Sebi has also  submitted findings related to Reliance Home Finance Ltd (RHFL), which saw its corporate loan book more than double within a year, raising concerns about irregularities and violations at the process level.

The Rise Of Anil Ambani

After Dhirubhai Ambani's death in July 2002, Mukesh Ambani took over as the Chairman of Reliance Group, while Anil Ambani became the Managing Director. At this time, the combined net worth of the Ambani brothers was $2.8 billion.

After the two brothers split Reliance Industries in December 2005, Anil Ambani founded the Reliance Anil Dhirubhai Ambani Group (Reliance Group) in July 2006. The Group's constituent businesses are involved in infrastructure, power, financial services (Reliance Capital) and other sectors. This also included telecommunications (Reliance Communications), and entertainment (Reliance Entertainment).

The Fall Of Anil Ambani

Eventually, Anil Ambani's company faced several challenges including high debt levels and cash flow issues. His companies Reliance Capital and Reliance Communications were also struggling to pay their debts.

Additionally, in 2019, Reliance Communications also defaulted on its debt payments and the company was later admitted to insolvency proceedings.

He also had to close the operations of the BTVI, a broadcast channel owned by him, citing a deep financial crisis, in 2019.

Anil Ambani was also personally bankrupt in 2020, as his financial situation had deteriorated severely and he was declared a willful defaulter by certain lenders in a UK court in 2020.

Consequently, he lost his reputation and control of several businesses. His net worth plummeted, and he faced numerous legal and financial challenges.

Also Read: Anil Ambani Under ED Lens: Reliance Power & Reliance Infra Stocks Crash Nearly 5% In Rs 3,000 Crore Loan Scam Probe