Anil Ambani, once celebrated as one of the world's wealthiest individuals with a fortune estimated at $42 billion in 2008, has seen his financial empire unravel in a spectacular fashion over the past decade. Ambani, who was ranked as the sixth richest person globally, now finds himself banned from the securities market and mired in legal and financial turmoil.

SEBI Ban and Financial Penalties
In a significant setback, the Securities and Exchange Board of India (SEBI) recently banned Anil Ambani and 24 other entities from the securities market for five years. This action follows allegations of fund diversion at Reliance Home Finance Limited (RHFL), where Ambani, as the former chairman, was implicated in orchestrating a fraudulent scheme. SEBI’s detailed 222-page order revealed that Ambani misused his position within the Anil Dhirubhai Ambani (ADA) group to siphon off funds under the pretext of loans to entities linked to him.

SEBI also imposed a ₹25 crore penalty on Ambani, along with fines on other individuals and entities involved in the scheme. The order highlighted that loans were sanctioned to companies with negligible assets or revenue, casting serious doubts on the legitimacy of these transactions. Despite directives from RHFL’s Board to cease these practices, the company’s management continued to overlook these instructions, leading to a significant governance failure.

Supreme Court Ruling and Further Financial Struggles
Earlier this year, Ambani's financial troubles were compounded when the Supreme Court overturned an ₹8,000 crore arbitral award granted to a firm within his group. This decision was related to a concession agreement between Delhi Airport Metro Express Pvt. Ltd. (DAMEPL), a subsidiary of Reliance Infrastructure, and Delhi Metro Rail Corporation (DMRC), dating back to 2008. The court ordered DAMEPL to refund approximately ₹3,300 crore that had been previously paid under the arbitral award.

In response to the ruling, Reliance Infrastructure clarified that the Supreme Court's decision did not impose any direct liability on the company and that the funds in question were not received by Reliance Infrastructure. However, this ruling further strained the financial situation of Ambani’s businesses, as DAMEPL, though a subsidiary, operates as a separate entity.

Fall from Grace
Anil Ambani's descent into financial crisis began long before these recent legal setbacks. In February 2020, he declared bankruptcy in a UK court amidst a series of legal and financial challenges. This marked a dramatic shift from his earlier years when he, along with his elder brother Mukesh Ambani, co-managed the sprawling Reliance empire inherited from their father, Dhirubhai Ambani.

Following their father's death in 2002, the Ambani brothers jointly led the Reliance conglomerate. However, in 2005, a dispute over control led to a split between them. Mukesh retained control of the flagship oil and petrochemical businesses, while Anil took over newer ventures, including telecommunications, power generation, and financial services. Unfortunately, many of these ventures, heavily financed through borrowing, faced significant challenges, leading to their eventual downfall.

Failed Ventures and Legal Challenges
Anil Ambani's business ventures across various sectors, including infrastructure, defense, and entertainment, largely failed to meet expectations. His ambitious plan to establish a mega gas-based power project in Dadri, Uttar Pradesh, faced a major setback when the Allahabad High Court quashed the land acquisition in 2009. His ventures in the entertainment industry, including partnerships with Adlabs and DreamWorks, also failed to generate the anticipated returns.

The financial troubles deepened when Reliance Communications (RCom), his telecom venture, began to accumulate substantial debt. By 2019, RCom was driven into insolvency proceedings. That same year, Ambani faced the threat of imprisonment when RCom failed to pay ₹550 crore to Ericsson AB’s Indian unit. His brother, Mukesh Ambani, stepped in at the last moment to provide the necessary funds, preventing Anil's imprisonment.

Further legal challenges emerged when three Chinese banks sued Anil Ambani in a London court over a $680 million loan default. The loans were extended to RCom in 2012, with Anil allegedly providing a personal guarantee. However, Ambani contested in court that he had only offered a non-binding "personal comfort letter" rather than a guarantee tied to his assets. This case remains unresolved.

Ongoing Financial Struggles
The financial woes of Anil Ambani's business empire continue unabated. In 2021, Reliance Capital, another key company within his group, filed for bankruptcy after defaulting on bonds worth ₹24,000 crore. Reliance Infrastructure, known for its role in constructing Mumbai's first metro line, also faced financial strain, missing a bond payment while awaiting funds from asset sales.

Despite these ongoing challenges, Anil Ambani’s influence on various industries in India during his peak years cannot be overlooked. His journey from being one of the wealthiest individuals globally to facing severe financial and legal difficulties underscores the volatile nature of the business world.