[ad_1]
Anil AmbaniThe good old days are unlikely to return anytime soon.
“without money” the younger brother of Asia’s richest man Mukesh Ambanilast week, he resigned as director of Reliance Power and Reliance Infrastructure, after the Securities and Exchange Board of India (Sebi) order barred him from association with any listed company.
The two companies are among many affected by the crisis under the former billionaire’s Reliance Anil Dhirubhai Ambani Group (ADAG).
Why did Sebi ban Anil Ambani?
In February, market surveillance prohibited Reliance Home Finance (RHFL) and Anil Ambani, its promoter, along with three others, from the stock market for allegedly siphoning company funds.
It also acted on complaints from several banks about their loans to ADAG firms that were partially used to pay off loans from other ADAG subsidiaries. These financially weak companies were allegedly used as conduits to divert funds from RHFL to ADAG firms.
In addition to the securities market ban, Sebi has prevented Anil Ambani from associating with any intermediary registered with it or with any publicly listed company. Until further notice, he is not allowed to act as a director/promoter of any public company intending to raise money from the market.
Anil Ambani’s declining fortunes
When the sixth richest billionaire in the world with assets of $42 billion, Anil Ambani declared himself pauper to Chinese banks in 2020 and also informed a UK court that his net worth has become zero.
Over the years, his wealth gradually disappeared, though not so slowly. For example, by 2011, Ambani’s net worth was down to $8.8 billion. It was also the time when he faced allegations of dubious 2G transactions.
“Anil Ambani’s investments were worth more than $7 billion in 2012, now they are worth $89 million, and his net worth is zero when his liabilities are taken into account… Simply, he was a rich businessman, now he is not,” his lawyer said in a UK court in 2020
Meanwhile, his companies were turning into losers and accumulating huge debts.
What’s next for Reliance Power and Reliance Infra?
The boards of directors of the two companies, in separate filings with the BSE (pdf), said they aim to be debt-free in the “next financial year” and expressed full confidence in Ambani’s leadership. In India, the financial year begins on April 1 and ends on March 31.
Retired civil servant, Rahul Sarin, has been appointed as an additional but independent director on the boards of Reliance Infrastructure and Reliance Power.
Sarin was hired for a five-year tenure at Reliance Power and Reliance Infrastructure.
[ad_2]
Source link
