The Rise, Fall, and Reinvention of Anil Ambani: From Bankruptcy Claims to Building Jets
🔍Insights
The rise of the Ambani brothers, Mukesh and Anil, is one of India's most inspiring business tales. Mukesh and Anil Ambani, sons of the legendary Dhirubhai Ambani, were set to grow Reliance Industries into an even bigger empire. In 2008, Anil Ambani ranked as the sixth-richest person in the world, boasting a staggering net worth of $42 billion.
But his journey soon took a dramatic turn in 2020, when he declared bankruptcy in a UK court, marking one of the most stunning downfalls in corporate India. This is the rollercoaster story of Anil Ambani, a man who went from being one of the world’s richest billionaires to declaring bankruptcy, only to now rise again, this time building business jets and clean energy assets.
The Ambitious Climb: How Anil Ambani Took the Spotlight?
The Great Reliance Split (2005)
After the death of legendary industrialist Dhirubhai Ambani in 2002, a power struggle emerged between his two sons, Mukesh Ambani and Anil Ambani, over the control of Reliance Industries. The boardroom battle soon became public and captivated corporate India. In June 2005, their mother, Kokilaben Ambani, brokered a peace deal, leading to the formal division of the Reliance empire.
Under the demerger agreement, Anil Ambani received control of several non-petrochemical businesses, including:
- Telecom – Reliance Communications
- Financial Services & Insurance – Reliance Capital
- Power & Infrastructure – Reliance Energy (later renamed Reliance Infrastructure)
- Natural Resources – Reliance Natural Resources Ltd (RNRL)
Devashish Shrivastava
The IPO Boom
Anil’s ambition knew no bounds. In 2008, he launched the Reliance Power IPO, which became a historic market event. The IPO was:
- Oversubscribed within minutes, drawing massive interest from investors.
- It had received bids for 69 times the number of shares on offer, reflecting unprecedented investor enthusiasm.
- Raised INR 11,500 crores ($3 billion), making it India’s largest IPO at the time.
Riding on the IPO hype, Anil’s net worth skyrocketed to around $42 billion, briefly making him the 6th richest person in the world, ahead of even his elder brother, Mukesh. It was the peak of his financial might.
Expanding the Empire: From Telecom to Tinseltown
With massive public and investor support, Anil rapidly diversified his portfolio:
- Reliance Capital entered insurance, mutual funds, and consumer finance.
- Reliance Infrastructure undertook large-scale EPC and urban transport projects.
- In media, he launched BIG FM, acquired Adlabs Films, and even partnered with Steven Spielberg’s DreamWorks in 2009, involving $825 million in funding from Reliance, marking one of India’s boldest global entertainment deals.
Varad Kitey
The Fall of Anil Ambani: Debt, Legal Woes & Public Humiliation
The Telecom Collapse
Reliance Communications (RCom), once India’s telecom leader, couldn’t survive the Jio-led price war. Burdened by debt and failed strategies, it collapsed. A crucial $2 billion merger with MTN in 2008 also fell apart.
- Failed MTN deal due to regulatory restrictions (2008)
- Lost market share after Jio’s entry (2016)
- Filed for bankruptcy under IBC in 2019
Ericsson Contempt
In 2019, Anil was held in contempt by the Supreme Court over unpaid dues to Ericsson. Claiming inability to pay, he faced jail, until Mukesh Ambani stepped in. It was a moment of public embarrassment.
- INR 550 crore in dues unpaid to Ericsson
- Anil claimed zero liquidity
- Mukesh bailed him out with INR 453 crore
Court Order
A UK court has mandated that Anil Ambani pay over $700 million to Chinese banks, marking the conclusion of a high-profile legal battle that exposed the dramatic financial downfall of a businessman who was once among the world’s wealthiest tycoons.
Regulatory Crackdown & Supreme Court Blow
Anil Ambani's financial troubles deepened in 2024 as SEBI and the Supreme Court took major actions against him. He and 24 others were banned from the securities market over fund diversion at Reliance Home Finance. The Supreme Court also struck down a massive arbitration win for his group.
- SEBI barred Anil Ambani & 24 entities from the securities market for 5 years
- INR 25 crore fine imposed for mismanagement at Reliance Home Finance
- The Supreme Court overturned an INR 8,000 crore arbitration award to Reliance Infrastructure.
- Ordered INR 3,300 crore refund to Delhi Metro Rail Corporation (DMRC)
Sakshi Jadhav
The Reinvention: From Crisis to Comeback
Ambani 2.0 Strategy
Following a period marked by financial distress and legal hurdles, Anil Ambani set a bold new direction for his business empire in 2024–25. Shedding the high-debt, high-risk model of the past, he pivoted Reliance Group’s focus toward three strategic pillars:
- Defense manufacturing
- Green and renewable energy
- Asset-light, debt-conscious operations
This renewed approach aligns closely with India’s national priorities, including ‘Make in India’, Atmanirbhar Bharat, and the global push for clean, sustainable energy solutions.
Reliance Power’s Turnaround
- Q4 FY25 saw a dramatic turnaround: Reliance Power swung from an INR 397.6 crore loss to an INR 125.6 crore profit, committed to becoming debt-free via capital raises & cost control.
- The agreement includes the delivery of 930 MW of solar power combined with a 465 MW/1,860 MWh battery energy storage system (BESS), making it Asia’s largest solar-BESS project at a single location to date, the company stated.
Reliance Power Q4FY25 Financials:
| Particulars | Q4 FY25 (INR Cr) | Q4 FY24 (INR Cr) | YoY Change (%) |
|---|---|---|---|
| Revenue from Operations | 1,978.01 | 1,996.65 | -0.9% |
| Other Income | 87.63 | 197.20 | -55.6% |
| Total Income** | 2,066.64 | 2,193.85 | -5.8% |
| Total Expenses | 1,998.49 | 2,615.51 | -23.6% |
| Profit Before Tax | 67.15 | (463.05) | NA |
| Profit After Tax (PAT) | 125.57 | (397.56) | NA |
| Total Comprehensive Income | 122.41 | (396.62) | NA |
Reliance Infrastructure’s Revival
Reliance Infrastructure also staged a comeback in FY25:
- Cut standalone net debt from INR 3,831 crore to zero/near zero
- Posted an INR 4,387 crore consolidated profit in Q4 FY25
- Plans are underway to become fully debt-free and tap into defense & metro-rail projects, including INR 10,000 crore potential from MoD contracts
Reliance Infrastructure Financials FY25
| Particulars | Q4 FY25 (INR Cr) | Q4 FY24 (INR Cr) | YoY Change (%) |
|---|---|---|---|
| Consolidated Net Profit | 4,387.08 | (220.00) | NA |
| Consolidated Operating Income | 4,108.01 | ~4,666.00 (approx) | -12% (approx) |
| Adjusted EBITDA | 8,876.00 | ~1,137.00 (approx) | +681% (QoQ) |
| FY Consolidated PAT | 4,938.00 | (1,609.00) | NA |
| Standalone Net Debt | 0.00 | ~3,300.00 | Reduced to zero |
Big Moves in Defense & Aviation
In June 2025, Reliance took a major step into aerospace:
- Partnered with Dassault Aviation to build Falcon 2000 business jets in India, the first assembly outside France
- Set up the final assembly line at the DRAL facility in Nagpur, targeting the first "Made‑in‑India" Falcons by 2028
- The venture was hailed as "Make in India" and triggered a 4.2% jump in Reliance Infra shares
In parallel, Reliance signed an INR 10,000 crore agreement to:
- Manufacture Vulcano 155 mm precision-guided artillery shells at a greenfield plant in Maharashtra, projected to be India’s most advanced private defense production hub.
- The plant is a part of the upcoming Dhirubhai Ambani Defence City (DADC) in Ratnagiri. It is expected to produce 200,000 shells annually, along with 10,000 tonnes of explosives and 2,000 tonnes of propellants.
These high-stakes ventures mark Reliance’s decisive push into critical defense and aerospace manufacturing, aligning with India’s Atmanirbhar Bharat (self-reliant India) initiative and supporting Anil Ambani’s broader corporate revival strategy.
Sakshi Jadhav
Passing the Baton: A New Era for the Ambanis
As Anil Ambani reshapes his business empire, his sons Jai Anmol Ambani and Jai Anshul Ambani have stepped up as key drivers of the group's revival. The next generation of the Ambani legacy is quietly but firmly taking charge, bringing fresh energy, strategic clarity, and a modern lens to the Anil D. Ambani Group (ADAG).
Jai Anmol Ambani – The Financial Brain
The elder son, Jai Anmol, previously a director at Reliance Capital and Reliance Nippon Life AMC, has taken a more hands-on role in the group's financial restructuring.
- He began his career as an intern at Reliance Mutual Fund in 2014 and rose to become Executive Director at Reliance Capital in 2017
- Instrumental in raising stakes in Nippon India Asset Management.
- He is popular for his focused style of leadership in financial ventures.
Conclusion
Anil Ambani’s story is a rare mix of extreme success, public downfall, and quiet reinvention. Once the 6th richest man in the world, he lost it all, facing bankruptcy, legal troubles, and market bans. But he didn’t give up. Today, with a renewed focus on defense, green energy, and debt-free growth, Anil is slowly rebuilding.
FAQs
What is Anil Ambani’s current role in Reliance Group?
Anil Ambani is Chairman of the Reliance Group, overseeing all its major listed companies, Reliance Communications, Capital, Infrastructure, Power, Defence & Engineering, among others.
How has Anil Ambani’s net worth changed in recent years?
As of March 2025, Anil Ambani’s net worth has plunged to approximately $530 million, down from a peak of $42 billion in 2008, with most of the decline unfolding over the past decade.
What is the status of Anil Ambani's legal or bankruptcy cases?
Anil Ambani is facing multiple legal issues. In July 2025, SBI flagged Reliance Communications' loan account as fraud. SEBI banned him from the securities market for 5 years in 2024 over fund diversion. NCLT admitted insolvency proceedings against Reliance Infrastructure, though NCLAT later paused it. He also withdrew a tax notice challenge in April 2025 and was fined.
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