Latest news with #RCom
India.com
10 hours ago
- Business
- India.com
Anil Ambani was once 6th richest person in world, far richer than Mukesh Ambani, but lost everything due to…
Anil Ambani and Mukesh Ambani (File) When the wealth was divided between Mukesh Ambani and Anil Ambani, the latter received big companies like Reliance Communications (RCom), Reliance Capital, Reliance Energy, and Reliance Natural Resources. This distribution gave Anil Ambani global presence and he became even wealthier than his brother Mukesh Ambani at the time. Out of his companies Reliance Power gave him so much wealth. At one point, with a net worth of $42 billion (around Rs 3.5 lakh crore), he became the 6th richest person in the world, surpassing his elder brother Mukesh Ambani. In 2002, the combined wealth of both brothers stood at only $2.8 billion. This grew to $6 billion in 2004 and later to $7 billion in 2005. What Went Wrong for Anil Ambani? Despite this success, Anil Ambani's companies started struggling due to poor investment decisions and changing market conditions. It also faced intense competition. Especially, Reliance Communications (RCom) suffered massive losses in the telecom sector. The Debt Trap: Anil Ambani's companies relied on debt, which became unmanageable over time. In February 2020, he declared bankruptcy in a UK court and claimed that he no longer has major assets. Reliance Capital's Crisis: Another major company of Anil Ambani, Reliance Capital, is being sold to repay creditors. IndusInd International Holdings Ltd (IIHL) from the Hinduja Group was the top bidder for the same. IIHL has received approval to increase its stake in the bank from 15% to 26%. The deal will be finalized once clearance is obtained from IRDAI. Anil Ambani Current Net Worth As of March 10, 2025, reports estimate Anil Ambani's net worth at just $530 million (around Rs 4,400 crore) which is far less if compared to the wealth during the time of dispute. His brother Mukesh Ambani's total wealth is currently valued at Rs 9.10 lakh crore.
India.com
5 days ago
- Business
- India.com
Anil Ambani was once richer than Mukesh Ambani! in world's top 10 richest persons list, now how much wealth left with him?
After several setbacks now Anil Ambani is trying to revive his business with the help of his two sons Jay Anshul Ambani and Jay Anmol Ambani. He is also trying to come out of massive debts after some of his company has become debt free. However he was not in a struggling situation since the start of his career. When the wealth of Mukesh and Anil Ambani was divided, Anil Ambani got companies like Reliance Communications (RCom), Reliance Capital, Reliance Energy, and Reliance Natural Resources. During this time his net worth was higher than his elder brother, Mukesh Ambani. After the listing of Reliance Power, his net worth increased very much. During peak time his net worth was $42 billion (around Rs 3.5 lakh crore). He was the world's 6th richest person, ahead of Mukesh Ambani at that time. In 2002, the combined wealth of the two brothers was $2.8 billion, which grew to $6 billion in 2004 and $7 billion in 2005. What Went Wrong for Anil Ambani? After this success, Anil Ambani's companies faced setbacks due to poor investment decisions, market shifts, and intense competition. Reliance Communications (RCom) suffered heavy losses in the telecom sector. Anil Ambani's businesses were dependent on heavy debts, which went out of control over time. By February 2020, Anil Ambani declared bankruptcy in a UK court, claiming he no longer had any major assets. Anil Ambani, Mukesh Ambani Current Net Worth According to March 10, 2025 media reports, Anil Ambani's net worth at just $530 million (Around Rs 4,400 crore), far less than his earlier wealth. Whereas, Mukesh Ambani's net worth is currently around Rs 9.10 lakh crore. One of Anil Ambani's companies, Reliance Capital, is being sold off to repay creditors. The Hindujas' IndusInd International Holdings Ltd (IIHL) was the highest bidder. IIHL has received approval to increase its stake in the bank from 15% to 26%, and the deal is expected to conclude once it receives clearance from IRDAI.
Mint
01-05-2025
- Business
- Mint
NCLT to decide on RCom's ₹550 crore refund plea against Ericsson in June
The insolvency court said it will decide next month on bankrupt telco Reliance Communications Ltd's plea seeking a ₹ 550 crore refund from Swedish telecom equipment maker Ericsson. During a brief hearing at the Mumbai bench of the National Company Law Tribunal (NCLT) on Thursday, Ericsson's counsel termed the plea 'frivolous'. The tribunal has directed both parties to file their responses and listed the matter for hearing on 11 and 12 June. RCom and its two subsidiaries—Reliance Telecom and Reliance Infratel—paid Ericsson ₹ 550 crore in 2019 following a Supreme Court order. The bankrupt company now argues that the payment amounted to preferential treatment, since Ericsson is an operational creditor and received full payment ahead of secured financial creditors. In a court petition this week, RCom's resolution professional, Anish Nanavaty of Deloitte, said the payment to Ericsson amounted to a 'preference' as it had 'the effect of putting the respondent in a beneficial position vis-a-vis the other creditors of the corporate debtor in the event of distribution being made under liquidation of the corporate debtor'. The respondent here refers to Ericsson while the corporate debtor is RCom. Ericsson is in no mood to give in. 'The demand for refund is an abuse of process of law inasmuch as the settlement and undertaking was in an order passed by the Supreme Court under Article 142 of the Constitution of India,' Anil Kher, senior advocate representing Ericsson, earlier told Mint. Article 142 allows the apex court to pass any order to ensure justice. RCom had approached NCLT in 2019 seeking a refund from Ericsson, which asked the tribunal to dismiss the petition 'with exemplary costs', calling it wholly misconceived. The Swedish company had called the petition 'motivated at the instance of the members of the Committee of Creditors who are also the Financial Creditors'. Nanavaty's petition this week was a rejoinder to this. Once among India's leading telecom operators, RCom could not survive a brutal tariff war that began in 2016, and filed for bankruptcy in 2019. Earlier in 2013, RCom and its subsidiaries had engaged Ericsson to maintain their telecom networks. By 2017, with unpaid dues mounting to over ₹ 1,500 crore, Ericsson initiated insolvency proceedings. The case escalated, and after payment deadlines were missed, Ericsson filed a petition in the Supreme Court against RCom's former chair Anil Ambani and the company's units. At the time, RCom was reeling under a debt load of over ₹ 46,000 crore, with major financial creditors including the State Bank of India and China Development Bank. Operational creditors included the telecom department, tower companies, and vendors. In early 2019, RCom filed for bankruptcy, and Deloitte was appointed as the resolution professional. That same year, RCom cleared the dues to Ericsson—paying ₹ 458.77 crore in addition to an earlier deposit of ₹ 118 crore. Later in 2019, Deloitte filed a petition before the National Company Law Appellate Tribunal (NCLAT) seeking a refund from Ericsson on grounds of preferential payment. The appellate tribunal directed the parties to approach the NCLT's Mumbai bench, which is now hearing the matter afresh.
Mint
01-05-2025
- Business
- Mint
NCLT to decide on RCom's ₹550 crore refund plea against Ericsson in June
The insolvency court said it will decide next month on bankrupt telco Reliance Communications Ltd's plea seeking a ₹ 550 crore refund from Swedish telecom equipment maker Ericsson. During a brief hearing at the Mumbai bench of the National Company Law Tribunal (NCLT) on Thursday, Ericsson's counsel termed the plea 'frivolous'. The tribunal has directed both parties to file their responses and listed the matter for hearing on 11 and 12 June. RCom and its two subsidiaries—Reliance Telecom and Reliance Infratel—paid Ericsson ₹ 550 crore in 2019 following a Supreme Court order. The bankrupt company now argues that the payment amounted to preferential treatment, since Ericsson is an operational creditor and received full payment ahead of secured financial creditors. In a court petition this week, RCom's resolution professional, Anish Nanavaty of Deloitte, said the payment to Ericsson amounted to a 'preference' as it had 'the effect of putting the respondent in a beneficial position vis-a-vis the other creditors of the corporate debtor in the event of distribution being made under liquidation of the corporate debtor'. The respondent here refers to Ericsson while the corporate debtor is RCom. Ericsson is in no mood to give in. 'The demand for refund is an abuse of process of law inasmuch as the settlement and undertaking was in an order passed by the Supreme Court under Article 142 of the Constitution of India,' Anil Kher, senior advocate representing Ericsson, earlier told Mint. Article 142 allows the apex court to pass any order to ensure justice. RCom had approached NCLT in 2019 seeking a refund from Ericsson, which asked the tribunal to dismiss the petition 'with exemplary costs', calling it wholly misconceived. The Swedish company had called the petition 'motivated at the instance of the members of the Committee of Creditors who are also the Financial Creditors'. Nanavaty's petition this week was a rejoinder to this. Once among India's leading telecom operators, RCom could not survive a brutal tariff war that began in 2016, and filed for bankruptcy in 2019. Earlier in 2013, RCom and its subsidiaries had engaged Ericsson to maintain their telecom networks. By 2017, with unpaid dues mounting to over ₹ 1,500 crore, Ericsson initiated insolvency proceedings. The case escalated, and after payment deadlines were missed, Ericsson filed a petition in the Supreme Court against RCom's former chair Anil Ambani and the company's units. At the time, RCom was reeling under a debt load of over ₹ 46,000 crore, with major financial creditors including the State Bank of India and China Development Bank. Operational creditors included the telecom department, tower companies, and vendors. In early 2019, RCom filed for bankruptcy, and Deloitte was appointed as the resolution professional. That same year, RCom cleared the dues to Ericsson—paying ₹ 458.77 crore in addition to an earlier deposit of ₹ 118 crore. Later in 2019, Deloitte filed a petition before the National Company Law Appellate Tribunal (NCLAT) seeking a refund from Ericsson on grounds of preferential payment. The appellate tribunal directed the parties to approach the NCLT's Mumbai bench, which is now hearing the matter afresh. In 2020, RCom's committee of creditors selected UVARCL as the preferred bidder for RCom and Reliance Telecom, while Reliance Jio was chosen for Reliance Infratel's assets. However, both transactions remain entangled in legal challenges. First Published: 1 May 2025, 02:06 PM IST
India.com
01-05-2025
- Business
- India.com
Bad news for Anil Ambani as court case between Reliance Communications, Ericsson returns after…, it is related to..
A six-year-old legal battle between the bankrupt Reliance Communications (RCom) and Swedish telecom equipment vendor Ericsson has resurfaced. The dispute was over Rs 550 crore payment made by RCom and its two subsidiaries to Ericsson in 2019. How telcos resolution professionals (RP) are now seeking to reclaim it. Reliance Communications VS Ericsson Dispute In 2013, RCom and its subsidiaries Reliance Telecom and Reliance Infratel entered into a contract with Ericsson to maintain their telecom networks. However, after Mukesh Ambani's Reliance started its Jio network in 2016 other small telecom players like RCom started getting weaker. By 2017, unpaid dues to Ericsson were almost around Rs 1,500 crore, so the Swedish company lodged an insolvency case against RCom. The case was heard before multiple legal forums like the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). The NCLAT ordered RCom to settle the dues by December 15, 2018, but when the payment deadline was missed, Ericsson filed a contempt petition in the Supreme Court against Anil Ambani, then chairman of RCom. Payment And Current Dispute In early 2019, RCom was already debt ridden with debt of Rs 46,000 crore and filed for bankruptcy. As part of a court-directed settlement, RCom paid Rs 458.77 crore to Ericsson (with an additional Rs 118 crore deposited earlier). Anil Ambani publicly thanked Mukesh and Nita Ambani for their financial help in making the payment. However, RCom's resolution professional, Deloitte's Anish Nanavaty, argued that the payment to Ericsson constituted 'preferential treatment' under insolvency laws. Deloitte stated that operational creditors like Ericsson should not be paid ahead of financial creditors like State Bank of India and China Development Bank. The RP filed a petition in the NCLT and claimed the payment gave Ericsson an unfair advantage over other creditors in the liquidation process. Ericsson's Stand Ericsson has declined the demand for a refund and stated that the payment was made under a Supreme Court order under Article 142 of the Indian Constitution, which allows the apex court to give justice through its rulings. In 2019, Ericsson sought the dismissal of Deloitte's petition with exemplary costs, deeming it baseless and influenced by the Committee of Creditors, comprising financial creditors. The dispute over preferential payment has now returned to the NCLT's Mumbai bench and is scheduled for a hearing on Thursday.
