Anil Ambani Birthday: How One-Time Billionaire Ambani's Empire Is Fading Into Oblivion?

Anil Ambani's flagship company Reliance Communications lost its bet in the telecom market, which had witnessed several changes apart from the company getting embroiled into controversies, leading to bankruptcy towards the end.

(Photo by Indranil MUKHERJEE / AFP)

New Delhi:  Reliance Group chairman Anil Ambani, who turned 61 on Thursday, became part of the world's billionaire club in 2008 with $42 billion but crashed out of the list last year with his empire shrinking and enormous debt piling up. The beleaguered businessman who ushered in an era of telecom boom didn't preempt this downfall as the battle in the sector intensified with the turn of events. Also Read: Mukesh Ambani’s Wealth Surges After Facebook Deal, Topples Jack Ma To Become Asia’s Richest Person Even several companies under the group witnessed value erosion over a period of time due to a higher level of pledging of promoter's stake in group companies and legal battles from lenders besides the dwindling market values. The businessman inherited a part of the Reliance industrial conglomerate created by Dhirubhai Ambani, who died in 2002. The death of the visionary leader was followed by a tussle between the two brothers on controlling stakes that had already hampered the enterprise value. While elder brother, Mukesh, became Asia’s richest man in 2018 with an increase in net worth to over $43 billion, Anil Amb­ani’s wealth reduced to $1.5 billion. Anil Ambani promoted Reliance Communications lost its bet in the telecom market which had witnessed several changes apart from the company getting embroiled into controversies as well. The company finally filed for bankruptcy last year and he resigned as the director of the company.  There was a time when his rivals charged between ₹4-6 per minute for incoming calls, the RCom had offered the service with a handset of Rs500. He has invested heavily in RCom’s in CDMA technology and expansion into 3G and GSM services. However, Reliance Communications Ltd the flagship company was battered by the price war Jio started. And now the UK court ruling last month came as a blow for the beleaguered businessman with the court directing the chairman to make an interim payment of $716.91 million within 21 days, while it vacated a pre-trial review and trial proceedings listed for 2021, according to Hindu Businessline. The businessman has been ordered to pay the amount to a trio of Chinese banks include the Industrial and Commercial Bank of China Ltd Mumbai Branch, on behalf of itself, China Development Bank and Exim Bank of China following a dispute over defaulted loans. While in his plea earlier in February, the chairman’s lawyer has informed the court saying, “Mr Ambani's investment has collapsed since 2012. The Indian telecom sector in particular has been dramatically hit by the Indian government's change of policy in relation to the grant of spectrum". However, the 60-year-old is the younger brother of Mukesh Ambani, the wealthiest man in Asia who has rescued him in the past. On Wednesday, the Anil Ambani-promoted Reliance Infrastructure, at the consolidated level, defaulted to the tune of Rs 3,315 crore, according to Business Standard report. In its annual report for FY20, the company has defaulted on payments of both interest and principal to various lenders. This spiraling of debt seems to have taken a toll on the group's businesses and it's high time that the once-wealthy businessman sprung into action before the empire starts fading into oblivion.