Anil Ambani excluded from the securities market: Another chapter of a falling empire

Anil Ambani, one of India's most renowned businessmen and Chairman of the Reliance Group, has been barred from trading on the stock market for five years by the Securities and Exchange Board of India (SEBI). Additionally, he must pay a fine of approximately 3 million USD. The ban was imposed due to allegations of fund misappropriation. Ambani has indicated his intention to review the decision and consider legal action. Once the sixth richest person in the world, topping global rich lists in 2008, he has faced significant legal and financial challenges for years, culminating in a bankruptcy announcement before a UK court in 2020. The troubles began in 2005, when the Ambani family decided to split the Reliance Group between Anil and his brother Mukesh Ambani. While Mukesh Ambani, now regarded as Asia's richest man, took over Reliance Industries, Anil Ambani led Reliance Communication and Reliance Infrastructure. Between 2014 and 2017, Anil Ambani's energy and infrastructure companies began to accumulate substantial debt. Soon after, insolvency proceedings were initiated against Reliance Naval and Engineering. From 2017 to 2019, problems intensified with an unpaid 2.5 billion-rupee loan from Reliance Communications to Dena Bank. This resulted in a 240 billion-rupee asset divestment to reduce debt. Additional legal issues, including a potential jail term due to outstanding payments to Ericsson AB and lawsuits by Chinese banks, further burdened the businessman. PwC withdrew as auditor for Reliance Capital, citing unsatisfactory responses to questions regarding the 2019 financial statements. This eventually led Reliance Communications to insolvency court as well. In August 2020, the Delhi High Court halted insolvency proceedings against Anil Ambani based on a personal guarantee of 12 billion rupees for loans from the State Bank of India to his companies. In November 2021, India's central bank initiated insolvency proceedings against Reliance Capital. In February 2022, SEBI issued an interim order preventing Anil Ambani and other executives from associating with listed companies or acting as their directors, as well as from associating with market intermediaries, pending further orders due to alleged fund misappropriation. In March 2022, Anil Ambani resigned from the boards of Reliance Infrastructure and Reliance Power. Finally, on August 23, 2024, the final order was issued, banning Anil Ambani from stock trading for five years.