Anil Ambani's journey from $42 billion net worth to claiming poverty

Prabhjote GillFeb 8, 2020, 17:14 IST

Business Insider India

Anil Ambani claims "zero net worth"BCCL

Once worth $42 billion and sixth on Forber’s Billionaire Index, Anil Ambani pleaded poverty in a dispute against Chinese banks on Friday. He told a UK court that his “net worth was zero” according to Bloomberg.

This is despite the fact that he owns a fleet of cars, a jet, a helicopter and a yacht. However, he told the court that these possessions were owned by corporate entities rather than by him personally. As of 3 April 2019, Ambani net worth is around $1.7 billion.

Three Chinese banks — Industrial and Commercial Bank of China (ICBC), China Development Bank and the Export-Import Bank of China — are suing Mukesh Ambani’s younger brother for defaulting on a loan that was given to Reliance Communications.

The banks allege that the former Reliance Communications chairman owes them over $700 million (₹5,000 crore), which includes interest.

Lenders to Reliance Communications are expected to claim dues of up to ₹90,000 crore — double the ₹46,000 crore that the company owes. This is one of the highest demands from a company that’s become insolvent.

Banki Thanki QC, the lead counsel for the Chinese banks, claims that was “a dichotomy” between the younger Ambani’s claims of poverty and his lavish lifestyle.

“One is bound to ask why he can’t arrange for his companies to sell those assets and use the funds to pay the courts,” said Thanki.

Here’s Anil Ambani’s rags to riches story:

See Anil Ambani's journey from $42 billion net worth to claiming poverty >>

In 2008, Anil Ambani was at his peak with a net worth of $42 billion, according to Forbes.

By 2011, his net worth collapsed 4-fold to $8.8 billion after the 2G scandal broke and the Central Bureau of Investigation’s (CBI) enquiry into his involvement with Swan Telecom.

In 2013, Anil Ambani’s net worth fell by another $3 billion to $5.2 billion as Reliance Power lost steam.

By 2016, his worth halved to $2.5 billion after many of its companies ran into debt and operational troubles. Reliance Power was selling its assets and Reliance Communications was unable to compete against the top reigning telecom companies and was losing consumers.

By the time 2018 rolled around, Anil Ambani’s net worth saw a slight bump to $2.8 billion.

However, in 2019, Reliance Communications had to file for bankruptcy. The Supreme Court ordered Anil Ambani to pay up or head to jail. His elder brother, Mukesh Ambani - who is Asia’s richest man, bailed him out by paying up ₹4.5 billion.

Last year, Ambani dropped out of the billionaires club with reports claiming that his net worth is around $500 million. But, Forbes data still shows his net worth to be $1.7 billion.

Thanki claims that Ambani’s fleet of luxury cars is worth $3 million (₹21.4 crore).

Thanki also points out that Ambani’s luxury yacht named Tian is worth $56 million (₹400 crore).

Source: Luxury Topics

“It remains unclear how he is funding his $700,000 (₹5 crore) legal fees in these proceedings,” said Banki Thanki QC, the lead counsel for the Chinese banks.

Justice Waksman was also critical of Ambani’s statements. “He clearly has more assets or income than he is letting on,” said the judge.

“It would be absurd if Mukesh said he could not afford to lend the money given the size of his fortune. This is an extremely wealthy family who have helped each other in the past. I don’t accept his own available assets are as limited as he says,” he added.

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