Reality Check: Is Anil Ambani Net Worth Really Rs. ZERO?

In the corporate world, there is no need to introduce Anil Ambani. He became well-known as the Chairman of the Reliance ADA Group, making him one of the most well-known corporate tycoons in both India and the entire world. However, in recent years, his financial fortune has taken a massive hit. He is now referred to as the man who went from riches to rags. Anil Ambani took on the duty of growing the Reliance Group’s financial services segment in the late 1980s

The son of wealthy tycoon Dhirubhai Ambani, Anil Ambani never faced financial problems in his early years. Anil Ambani took on the duty of growing the Reliance Group’s financial services segment in the late 1980s. He played a key role in the group’s foray into the telecom industry. In 2002, he created Reliance Infocomm, which swiftly grew to become one of the country’s top telecom providers. He was also a key figure in the group’s entry into the electricity industry with the founding of Reliance Power.

Anil Ambani’s net worth, which was reported to be approximately $42 billion in 2008, was a testament to his success in business. According to Forbes magazine, he was one of the wealthiest people in the world at that time.

Things began to turn around for Anil Ambani following the 2008 global financial crisis

The group’s investments in a number of industries, including infrastructure, electricity, and telecommunications, started to go bad. A court dispute between Anil Ambani and his older brother Mukesh Ambani in 2010 marked the beginning of Anil Ambani’s financial empire’s demise. While the disagreement was ultimately settled, the financial health of the group suffered greatly.

Following the 2G scandal and CBI inquiry into his involvement with Swan Telecom, his net worth fell by an astounding 4-fold to $8.8 billion in 2011. He experienced a further setback in 2013, when one of his businesses, Reliance Power, started to falter. As a result, his net worth dropped by $3 billion to $5.2 billion.

Things become worse in 2016 when many of Anil Ambani’s companies faced mounting debt and operational troubles. It caused his net worth to be halved to $2.5 billion. Reliance Power was compelled to sell its assets, while Reliance Communications failed to compete with more established telecom firms.

Anil Ambani’s net worth increased slightly to $2.8 billion in 2018. However, in 2019, the Supreme Court ordered Anil Ambani’s Reliance Communications to pay back dues worth Rs. 453 crores to Ericsson, a Swedish telecommunications company.

When Mukesh Ambani saved saved Anil from going to jail

The circumstances led the business into bankruptcy in the following year. Consequently, Anil Ambani was obliged to liquidate many of his assets to cover debts. The Supreme Court ordered Anil Ambani to pay up or head to jail. At that point, his older brother Mukesh Ambani stepped in to save the day by providing a 4.5 billion bailout. Despite the bailout, Anil Ambani’s net worth reportedly fell to around $500 million in 2020. It resulted in him dropping out of the billionaires club.

Furthermore, three significant Chinese banks, the Industrial and Commercial Bank of China (ICBC), the China Development Bank, and the Export-Import Bank of China have filed lawsuits against Anil Ambani for allegedly defaulting on a loan. The banks assert that Anil Ambani owes them money totaling more than $700 million (about Rs. 5,000 crores), plus interest, for money Reliance Communications borrowed from them.

Anil Ambani said in a British court that his current net worth is zero rupees

Anil Ambani earlier claimed in court that he had no wealth, yet he still possesses some of the most priceless possessions, such as a big Mumbai home with 17 floors, a collection of cars valued at Rs 20 crore, and some of the most costly boats and private jets in the world.

Anil Ambani’s net worth has significantly decreased, but his present net worth and investments are not worth zero rupees. His current investments and possessions total more than $83 million, or Rs 728 crore, according to Quartz.

While Anil Ambani is currently going through a rough patch in his life, his elder brother Mukesh Ambani is currently on the list of the top 10 richest people in the world. According to Forbes, he has an estimated net worth of $83.4 billion.

Anil Ambani’s decline from grace was quick and unexpected, and it was caused by a number of things. But all we can say is that his experience should serve as a warning about how rapidly things can turn around in the economic world.