For Anil Ambani, a comeback has always seemed just within grasp, only to be snatched away by a fresh wave of turmoil. The latest in a string of crippling blows for the once high-flying tycoon came last week when the Bombay High Court dismissed his petition challenging the State Bank of India’s (SBI) decision to classify his and Reliance Communications’ loan accounts as fraudulent.
This legal defeat followed closely on the heels of extensive raids by the Enforcement Directorate (ED) at six premises linked to his company, Reliance Infrastructure (RInfra), as part of a probe into alleged illegal remittances and loan diversions exceeding ₹17,000 crore. These events have cast a dark shadow over what briefly appeared to be a story of revival.
Just a few months ago, a different narrative was taking shape. RInfra and Reliance Power (RPower), the last major operating companies of his collapsed empire, were systematically reducing debt. A favorable Supreme Court order allowing them to recover ₹28,000 crore in power dues had injected a massive dose of optimism, and their shares turned into multi-baggers, rewarding investors who had kept the faith.
But just as hope returned, the storm gathered again. In August, the Central Bureau of Investigation (CBI) raided premises linked to Ambani in a separate bank fraud case. This was soon followed by the ED’s sweeping raids, extinguishing the nascent comeback story.
From World’s 6th Richest to Battling Bankruptcy
The current crisis is a stark contrast to Anil Ambani’s zenith in 2008. Fresh off the record-breaking IPO of Reliance Power, he was the world’s sixth-richest man with a fortune of ₹2.12 lakh crore. His group’s market capitalization touched ₹4 lakh crore. By 2019, his personal wealth had plummeted below ₹1,000 crore.
His empire collapsed under a mountain of debt, built on a series of ambitious but ultimately flawed ventures.
- Reliance Communications, his flagship telecom business, buckled under intense competition and debt.
- Reliance Naval and Engineering and Reliance Capital, once touted as future growth engines, both went into bankruptcy. Reliance Capital was acquired by the Hinduja Group, while Reliance Naval was taken over by Swan Energy.
A Pattern of Missteps and Isolation
Ambani’s decline is rooted in years of strategic miscalculations and risky bets that failed to pay off. Costly delays in major defence and infrastructure projects eroded investor trust, and a SEBI order eventually forced him to resign from the boards of his own companies.
Crucially, his split with elder brother Mukesh Ambani left him isolated from the country’s most powerful business ecosystem. Over the years, he failed to cultivate lasting alliances with other industry heavyweights, leaving him to compete alone against giants like the Adani Group and L&T in his core sectors of power and infrastructure.
The Fight for Survival Continues
Despite the setbacks, Ambani has continued to fight. He successfully challenged insolvency proceedings initiated against RInfra at the National Company Law Appellate Tribunal (NCLAT), providing a crucial lifeline.
His companies are also pivoting towards sectors aligned with national priorities.
- Reliance Power has partnered with Bhutan’s Druk Holding to develop a 500 MW solar plant and has won a massive 930 MW solar-plus-storage contract from the Solar Energy Corporation of India.
- Reliance Infrastructure has set an ambitious target of exporting ₹3,000 crore worth of ammunition by FY27.
However, the market remains skeptical. While RInfra and RPower stocks have surged over 1,000% in the last five years, they have lost 38% and 34% respectively in just the last three months, showcasing extreme volatility.
For Anil Ambani, the path ahead remains precariously balanced. The question of whether his comeback is being thwarted by powerful rivals or his own checkered history has no easy answer. For now, he remains caught between redemption and failure, his fortunes swinging with every court order and regulatory raid.
