<ul><li>The accounts of three Anil Ambani-led Reliance Group entities have reportedly been flagged as fraudulent by three banks, including India’s largest lender, the <keyword id="6354731" type="UNKNOWN" weightage="20" keywordseo="state-bank-of-india">State Bank of India</keyword> (<keyword id="13222" type="CITY" weightage="20" keywordseo="SBI">SBI</keyword>).</li><li><keyword id="46907" type="CITY" weightage="20" keywordseo="Reliance-communications">Reliance Communications</keyword>, Reliance Infratel, and Reliance Telecom owe lenders ₹86,188 crore.</li><li>This is ten times more than the debt garnered by former billionaires Vijay Mallya and <keyword id="571991" type="ORGANIZATION" weightage="20" keywordseo="Nirav-Modi">Nirav Modi</keyword>.</li></ul> India’s infamous fallen billionaire, Anil Ambani, may have claimed that his ‘net worth is zero’ but Indian banks aren’t buying it. In the midst of Reliance Communications’ bankruptcy resolution process, three Indian banks — the State Bank of India (SBI), <keyword id="63524" type="CITY" weightage="20" keywordseo="Union-Bank-of-India">Union Bank of India</keyword> (UBI) and the Indian Overseas Bank (IOB) — are classifying the company’s accounts and the accounts of its units as fraudulent. Sources told the <a href="https://telecom.economictimes.indiatimes.com/news/reliance-communications-resolution-may-hit-a-bump-as-banks-mark-its-account-as-fraud/79985386">Economic Times</a> that the three banks, which includes India’s largest lender, are looking to launch a deeper probe into the transactions from the account of three Anil Ambani-led Reliance Group entities — Reliance Communications, Reliance Infratel and Reliance Telecom. However, the Delhi High Court has directed Union Bank of India and Indian Overseas Bank to maintain the status quo in a matter pertaining to the classification of accounts as fraudulent until the next hearing on January 13. SBI and the Reliance Anil Dhirubhai Ambani Group declined to comment on the issue at the time of writing this article. "It is being falsely and mischievously stated in a section of social media that RCOM Group of companies owe Rs. 86,188 crore to Indian banks and financial institutions. have put out this statement," Reliance Communications told IANS two days later on December 30. The company asserts that as per figures certified by the Resolution Professional appointed by the lenders, the Reliance Communications' group owed ₹26,000 crore to Indian banks and financial institutions as on the date of filing before the NCLT. The Resolution Plans unanimously agreed by the lenders are at various stages of approval before the NCLT, and upon implementation thereof, the lenders are likely to recover at least 70% of their dues, with potential subsequent upside. <div type="image" title="anil ambani mukesh ambani_edited" msid="80003179" hostid="261" caption="&amp;lt;p&amp;gt;Anil Ambani (R) with brother Mukesh Ambani (L)&amp;lt;/p&amp;gt;"></div> Reliance Communications’ owes nearly ten times more money than Vijay Mallya and Nirav Modi The accusation of fraud puts Reliance Communications’ resolution plan at risk. According to the company’s official website, it owes ₹49,193 crore in dues. In addition to that, Reliance Telecom owes ₹24,306.27 crore and Reliance Infratel owes ₹12,687.65 crore. Cumulatively, <a href="https://www.livemint.com/companies/news/nclt-okays-jio-s-proposal-for-reliance-infratel-11607041042489.html">this adds up to ₹86,188 crore</a> — while still excluding the ₹28,837 that’s owed in spectrum dues. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Debt </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Communications </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 49,193 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Telecom </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 24,306.27 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Reliance Infratel </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 12,687.65 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TOTAL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹ 86,188 crore </td></tr></tbody></table> This is ten times more than what another fallen billionaire, <a href="https://www.businessinsider.in/this-is-how-much-vijay-mallya-owes-to-different-banks-in-india/articleshow/58243382.cms">Vijay Mallya</a>, owed Indian banks, with debt amounting to ₹9,000 crore. Compared to <a href="https://www.thehindu.com/news/cities/mumbai/pnb-hasnt-recovered-any-money-from-nirav-modi-mehul-choksi-rti-reply/article32904133.ece">Nirav Modi</a>, who owes at ₹7,409.07 crore, Reliance Communications’ debt is even more than a ten-fold hike. <div type="image" title="vijay mallya_edited" msid="80003173" hostid="261" caption="&amp;lt;p&amp;gt;Vijay Mallya&amp;lt;/p&amp;gt;"></div> Bankruptcy resolution hangs in the balance These allegations come nearly a year after a forensic audit unearthed questionable transactions worth ₹5,500 crore in the three Anil Ambani-led Reliance Group entities. At the time, the probe found three suspicious large entries buried between hundreds of thousands of other transactions between May 2017 and March 2018, which indicated fund diversion. However, the reclassification of Reliance Communication and affiliated companies’ accounts comes at a time when the bankruptcy resolution was finally moving along. The National Company Law Tribunal (NCLT) gave its approval to the resolution plan on December 5 after at least 11 months of negotiations. This opens up the path for Anil Ambani’s brother, Mukesh Ambani, to pick the company’s tower and fibre assets for his own telecom enterprise, Reliance Jio. The total consideration is pegged at around ₹20,000 to ₹23,000 crore to be paid over the next seven years. Meanwhile, Reliance Communications and Reliance Telecom Infrastructure will go to the UV Asset Reconstruction Company. Update: Article was updated on December 30 to reflect Reliance Communications' statement to IANS. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/jack-ma-ant-group-asked-to-overhaul-its-business-model-by-china-central-bank/articleshow/79987683.cms">China's central bank wants Jack Ma's Ant Group to overhaul its business model</a> <a href="https://www.businessinsider.in/science/environment/news/top-10-most-expensive-natural-disasters-of-2020-in-the-world/slidelist/79986294.cms">Cyclone Amphan was the most expensive cyclone of 2020 and the fourth most expensive natural disaster overall</a> <a href="https://www.businessinsider.in/science/health/news/serum-institute-of-india-sii-has-launched-indias-first-homegrown-pneumonia-vaccine-/articleshow/79992790.cms">SII launches India's first indigenous pneumonia vaccine at $3 per dose</a>

Three Anil Ambani companies have reportedly been accused of fraud by banks⁠ — the amount at stake is nearly ten times more than what Mallya owed

A UK court on Friday directed Reliance Group chairman Anil Ambani to pay USD 100 million towards a conditional order granted to three Chinese banks pursuing the recovery of over USD 680 million owed to them as part of a loan agreement. In what is in effect a deposit to be paid into court pending a full trial in the case, Judge David Waksman has set a six-week timeline for such a payment to be made as he concluded that he did not accept Ambani's defence that his net worth was nearly zero or that his family would not step in to assist him when "push came to shove". "In my overall conclusion, Mr Ambani has not satisfied me that he can't make any payment at all," said Judge Waksman, as he expressed particular criticism of a "lack of candour" and "transparency" on the part of Ambani's defence in reference to his financial means. The Reliance Group indicated that it plans to appeal against the ruling, which will involve a process of seeking permission to appeal. "Mr Ambani is reviewing the order of the UK Court and will take legal advice as to further remedies in appeal," a spokesperson for Anil Ambani said. "The order pertains to an alleged personal liability of Mr Ambani and will have no bearing on the operations of the Reliance Infrastructure Limited, Reliance Power Limited and Reliance Capital Limited," the spokesperson said. The banks - Industrial and Commercial Bank of China Ltd Mumbai Branch, on behalf of itself, China Development Bank and Exim Bank of China - welcomed the order and said they remain confident of their claim succeeding at trial. "This is a straightforward debt claim to recover outstanding loans made to RCom (Reliance Communications) in good faith and secured by a binding personal guarantee given by Mr Ambani, which he has refused to honour," a statement on behalf of the banks said. "We remain very confident in our claim. We hope that Mr Ambani will comply with the court's order and look forward to the swift resolution of the case at trial," the statement said. Another senior Reliance Group official added that based on the legal advice, the RCom chief intends to seek further remedies in appeal and is "confident" that he will have the opportunity to establish that the Chinese claim is "without any merit". Earlier, during a half-day hearing, the court was told that Reliance Group chairman Anil Ambani was a wealthy businessman and now he is not as a result of a "disastrous turn of events" in the telecom market in India. The Chinese banks had sought summary judgment against Ambani over an alleged breach of a personal guarantee on a debt refinancing loan of around USD 925 million in February 2012. Ambani, 60, denies providing authority for any such guarantee, resulting in the High Court action in the UK - the jurisdiction agreed to as part of the terms of the loan agreement. At the hearing at the Commercial Division of the High Court of England and Wales in London to set the terms for the "conditional order" granted to three Chinese banks last year against the Reliance Communications (RCom) boss, his legal team sought to establish that his net worth was zero once his liabilities were taken into account. "The value of Mr Ambani's investments has collapsed since 2012. The Indian telecom sector in particular has been dramatically hit by the Indian government's change of policy in relation to the grant of spectrum," notes his defence. "Whereas Mr Ambani's investments were worth more than USD 7 billion in 2012, they are now worth USD 89 million, and his net worth is zero once his liabilities are taken into account... Quite simply, he was a wealthy businessman, now he is not," said his barrister Robert Howe. The banks' counsel called Ambani's claims into question and repeatedly referred to his "lavish lifestyle". "So, Mr Ambani's assertion is that he is massively personally insolvent, is bankrupt. Has he filed for bankruptcy in India," questioned Justice David Waksman during the course of the half-day hearing. Ambani's legal team, including leading Indian lawyer Harish Salve, responded in the negative, followed by a brief reference in court to India's Insolvency and Bankruptcy Code (IBC) only recently coming into play. "The evidence overall is that Mr Ambani could not come close to paying a sum of USD 700 million into court," said Howe. The banks, represented in court by barrister Bankim Thanki, sought to establish that Ambani had been "at best economical with the truth" in his evidence statements to the court in relation to his financial means. They also pointed to a series of instances where Ambani family members had stepped in to bail him out, even as Ambani's defence sought to establish that their client had no access to the assets and shares under the name of his mother Kokila, wife Tina Ambani and sons Anmol and Anshul in the form of loans. "Are we seriously to believe that his own mother, wife, and sons can't help him in his hour of need for the purpose of complying with a conditional order," said Thanki, who claimed Ambani's evidence was akin to the proverbial "glossy lipstick on the pig" in terms of some "blatant" lies despite the burden of proof lying with him in the case. "ADA's (Anil Dhirajlal Ambani) brother Mukesh is widely regarded as the wealthiest man in Asia and is ranked by Forbes as the 13th richest person in the world and by Bloomberg as the 14th richest person in the world. He has an estimated net worth of USD 55 to 57 billion," notes the banks in court.

A British judge won't believe Anil Ambani is 'broke'⁠— or that his family won't bail him out

<ul><li>RCom made an early bet on CDMA technology which went out of style, while Jio chose LTE technology of 4G. </li><li>Mukesh spent massively on country-wide fibre networks, yet he is cognizant of the risks that a massive debt at the group level.</li><li>The plan to list Reliance Retail and <keyword id="6354504" type="DEFINITION" weightage="20" keywordseo="reliance-jio">Reliance Jio</keyword> in the next five years will complete the circle of deleveraging giving his telecom venture a longer lifetime than RCom.</li></ul>It's been three years since Mukesh Ambani launched Jio, a business that is close to his heart. Moreso, this is the second time that he is launching a telecom venture, yet it is the first time he tasted success. His first telecom venture, <keyword id="46907" type="CITY" weightage="20" keywordseo="Reliance-communications">Reliance Communications</keyword>, was launched in early 2000s under the auspices of his father, the legendary Dhirubhai Ambani. Even before the business went to his brother as the Ambani family divided in 2004, the first venture was fraught with troubles. A bet on the wrong technology meant extra investments, which coincided with the global economic slowdown, and piled debt so high, the risks of which were ignored at its peril. Now, RCom is facing bankruptcy proceedings while Jio seems to be thriving. The only difference is Mukesh seems determined not to repeat the mistakes of the past, both his own and that of his brother, with Jio. CDMA- a technology that took its toll on finances RCom had early on bet on an obsolete-to-be technology, which became its undoing. In the early 2000s when Airtel and Hutch (later Vodafone) went with GSM technology, both Tata Teleservices and RCom went in for CDMA technology, which users did not fancy. "I doubt if that could be termed as a mistake as many countries were using the technology but the world just went another way," Alok Shende, Managing Director of Ascentius Insights, a management consulting firm tells Business Insider India. Years after RCom came under Anil Ambani, as <a href="https://www.indiatoday.in/business/india/story/ambani-vs-ambani-when-brothers-broke-up-150083-2011-12-27">Reliance Industries was divided </a>in 2004, he had to shift to the much-popular GSM technology. The shift required one more costly one-time investment in terms of network upgrade and spectrum; and the timing wasn’t right either. Mukesh Ambani has stepped with Jio, which started out on LTE technology of 4G. And he is not stopping at that. "Because of our early adoption of the ongoing enhancements to LTE technology our wireless network is already 4G PLUS. And we can upgrade this to 5G at minimum incremental cost," he promised his shareholders at his annual general meeting this month. <keyword id="4056036" type="PERSON" weightage="20" keywordseo="Jio-Fiber">Jio Fiber</keyword> cable will deliver high-speed Internet right to homes and this will kickstart yet another set of services without having to fork out extra for spectrum. The telecom tariff war and its many victims Jio is currently waging a bitter price war in the telecom market. However, it is nothing new. A raging telecom price war started by Tata Teleservices in 2008 with one paisa per second plan, had hurt many others <a href="https://www.livemint.com/Home-Page/vaUfK95QU2z2cInvqWBv2I/RCom-sets-1-paisa-SMS-fee-extends-the-tariff-war.html">including him</a>. However, the shift from CDMA to GSM soaked in a lot of fresh investment that RCom could have spent to survive the price war. There are times when investments are affected the broad economic conditions. RCom’s second round of investments was followed by a global credit crunch after the Lehman Brothers’ collapse in September 2008, which made debt expensive and business extremely difficult. Debt is not bad, high-cost debt is. What is worse is to binge on it. Jio too has piled on a massive debt in rolling out its services and burning cash offering discounts and ultra-cheap tariffs to lure over 330 million customers in the first three years of its operations. The tariff attack <a href="https://www.businessinsider.in/details-of-jio-fibre-new-tariff-plan/articleshow/70639942.cms">continues with Jio Fibre</a>, too as the company speeds to acquire 500 million subscribers, but there is a difference between the Ambani brothers. Clearing debts will clear the air of apprehension Mukesh spent massively on country-wide fibre networks and is bleeding his competitors. Yet, he is cognizant of the risks that a debt of ₹2.8 lakh crore at the group level poses. In a timely move, Reliance Industries (RIL) announced that it would sell 20% stake in its oil-to-chemicals business to Saudi Arabia’s state-owned Aramco, the world’s largest oil producer, for $15 billion. Not just that, he plans to turn RIL into a zero net debt conglomerate by March 2021. Within the telecom business too, he brought in Canadian fund Brookfields which invested ₹ 25,215 crore in the towers unit. The plan to list Reliance Retail and Reliance Jio in the next five years will complete the circle of deleveraging giving his telecom venture a longer lifetime than Anil’s RCom. "It is a very classic Reliance way of doing things which is vertically integrated model. And, the results will play out in the next 5-10 years," Shende said about Mukesh’s plan to retire debt early. It will allow Jio to focus on adding services, like it already plans to, and bring its A-game to the tight race in telecom with Airtel and Vodafone Idea. "Jio will look at massive dominance in many areas like entertainment, e-commerce, Internet Of Things and will get more aggressive," says Kunal Bajaj, a top telecom expert and consultant.

As Reliance Jio turns three, another telecom venture of Mukesh Ambani is counting down to its end

<ul><li><keyword id="9171" type="PERSON" weightage="20" keywordseo="Anil-Ambani">Anil Ambani</keyword>’s <keyword id="54268" type="COMPANY" weightage="20" keywordseo="Reliance-Group">Reliance Group</keyword> borrowed over ₹1400 crore from <keyword id="45660" type="CITY" weightage="20" keywordseo="Yes-Bank">YES Bank</keyword>, making it one of the biggest borrowers.</li><li>Ambani’s RCom which declared bankruptcy in 2019, has a massive ₹46,000 crore in debt. </li><li>YES Bank founder Rana Kapoor was questioned by the ED and subsequently was taken under custody on charges of alleged financial irregularities and mismanagement in the operations of the bank.</li></ul>Reliance Group chairman Anil Ambani was summoned by the Enforcement Directorate regarding the <keyword id="8873513" type="UNKNOWN" weightage="20" keywordseo="yes-bank-crisis">YES Bank crisis</keyword>. According to a <a href="https://www.business-standard.com/article/companies/ed-summons-anil-ambani-in-connection-with-probe-against-rana-kapoor-120031500864_1.html">Business Standard report</a>, an ED official confirmed that Ambani was called in as all the big and troubled loans given out during Rana Kapoor’s leadership were being questioned. The group borrowed over ₹1400 crore from YES Bank, making it one of the biggest borrowers. Ambani who has three companies reeling under default and bankruptcy zone – Reliance Communications, Reliance Home Finance and Reliance Naval – has a massive ₹46,000 crore in debt, the report said. However, Ambani <a href="https://www.thehindubusinessline.com/companies/reliance-group-has-no-exposure-in-yes-bank-anil-ambani/article31042284.ece">had said</a> that his company has no direct or indirect exposure to YES Bank. The company said that its entire exposure to YES Bank is fully secured and transacted in ordinary course of business. “Reliance Group is committed to honour repayments of all its borrowings from YES Bank through its various asset monetisation programmes which are all at advanced stages,” it had said earlier in the statement. YES Bank founder Rana Kapoor was questioned by the ED last week and subsequently was taken under custody on charges of alleged financial irregularities and mismanagement in the bank’s operations. Kapoor will be kept under custody until today (March 16). Given the bank’s rising troubles, India’s central bank the Reserve Bank of India capped the withdrawals from YES Bank at ₹50,000 on March 5 – which resulted in chaos. However, this would be lifted on March 18, after three top - SBI, ICICI and HDFC said that they will take equity in it. See Also: <a href="https://www.businessinsider.in/thelife/news/yes-bank-founder-rana-kapoor-money-laundering-charges-international-hotels-and-bungalows-in-delhi/articleshow/74644767.cms">Buying international hotels, bungalows in Delhi and expensive paintings — everything that Yes Bank founder Rana Kapoor did with kickbacks for giving out bad loans</a> <a href="https://www.businessinsider.in/india/news/yes-bank-withdrawal-limit-to-be-lifted-in-three-working-days/articleshow/74624128.cms">Yes Bank withdrawal limit to be lifted in three working days</a>

Anil Ambani questioned by ED for his loans from troubled YES Bank

<ul><li>Vodafone Idea is left with no choice but to proceed for insolvency as the JV landed with the accumulated cumulative bill of ₹53,000 crore. </li><li>Tata Sons might either borrow or are known to either borrow or sell stakes in a business to pay it off. </li><li>Anil Ambani’s RCom was already in bankruptcy struggling to find buyers for its spectrum, fibre and other assets. </li></ul>When the government opened the telecom sector to private players, every big business house of the country rushed to invest in it. But now, right from Ambanis to Tatas and Birlas — everyone is <a href="https://www.businessinsider.in/business/news/airtel-voda-idea-tata-tele-likely-to-pay-agr-dues-on-monday-dot-source/articleshow/74162195.cms">paying the price for the many shocks this sector has posed. </a> It is yet to be seen if the sector which stood through two rounds of tariff war, will be able to survive the reparations sought<a href="https://www.businessinsider.in/business/corporates/news/airtel-and-vodafone-idea-share-price-hit-after-supreme-court-summons-sunil-mittal-and-kumar-mangalam-birla/articleshow/74129606.cms"> by telecom department as spectrum dues</a>. Birlas and the curse of Vodafone When Kumar Mangalam Birla— the tenth richest man in the country who is worth<a href="https://www.forbes.com/profile/kumar-birla/#2d68deb448ca"> $9.7 billion</a>— decided to merge his Idea Cellular with Vodafone India, he was hoping to create a stronger entity. Little did he know that it would mean merging liabilities — especially after SC backed telecom department’s definition of aggregate gross revenues. They landed with the accumulated cumulative bill of ₹53,000 crore. After seeking government relief, and pleading the courts to not take ‘coercive action’ on non-payment, Birla has ended speculation that Vodafone Idea would go under and<a href="https://www.businessinsider.in/business/telecom/vodafone-offers-to-pay-2500-crore-upfront-yet-sc-refuses-to-back-down-on-coercive-action/articleshow/74171965.cms"> decided to pay up</a>. “The Company is currently assessing the amount that it will be able to pay to DoT towards the dues calculated based on AGR as interpreted by the Hon'ble Supreme Court. The Company proposes to pay the amount so assessed in the next few days,” Vodafone Idea said in a press release. Birla who had earlier said that there is no point in good money following ‘bad’ money — had a lot more to lose i<a href="https://www.businessinsider.in/business/corporates/news/airtel-and-vodafone-idea-share-price-hit-after-supreme-court-summons-sunil-mittal-and-kumar-mangalam-birla/articleshow/74129606.cms">f Vodafone goes under </a>The group’s credit rating will be affected if Vodafone is liquidated, Sandeep Parekh, a lawyer at Finsec Law Advisors said in a TV interview. And, it will have a bearing on the Birla group’s corporate guarantees will make in the future. The conglomerate with interest in businesses ranging from cement to mining and a 147-year history might not be able to afford such a dent. Tatas to borrow or sell take to pay dues The ghost of Tata Docomo is back to haunt the Tatas. The company which started the first telecom tariff war in India had to sign a multi-billion dollar cheque to Japanese telecom major DoCoMo in 2017, as the business closed down. The predatory discounts and the slow uptake had made the group liable to their Japanese partner. After the AGR dues case, the legacy claims of losses have only extended. They have been sent a bill of ₹13,823 crore, and Tata Sons might either borrow or sell stakes in a business to pay it off, <a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/tata-sons-may-bank-on-tcs-to-clear-teleservices-agr-dues/articleshow/73709600.cms">according to Economic Times</a>. Telecom business and its failure was one of the main points that former chairman of Tata group, Cyrus Mistry pointed out as its many fallacies. Years before the cheque to DoCoMo was signed, <a href="https://www.businessinsider.in/business/corporates/news/cyrus-mistry-warning-to-ratan-tata-on-jlr-tata-motors-airasia-and-telecom/articleshow/72873129.cms">Mistry had predicted that Docomo's telecom</a> venture would leave a massive hole in Tata’s business. He said the cost of exiting the business would be $4-6 billion. Even Mistry could not have predicted the ‘extras’ (like the bill it is faced with right now) they would have to keep on paying after exiting the business. The double dues of Ambani-led RCom Anil Ambani’s problems with the telecom business started long before SC judgement. In fact, it was already in bankruptcy struggling to find buyers for its spectrum, fibre and other assets. Even after the sale, the creditors who are o<a href="https://economictimes.indiatimes.com/industry/telecom/telecom-news/rcom-insolvency-coc-expects-to-raise-rs-14000-cr-from-assets/articleshow/72357982.cms?from=mdr">wed ₹49,000 crore will only receive</a> a quarter of what they are owed. Since Government’s claim came much after, it might not receive any. But, no one is vindicated in the case. If the spectrum dues are added to the liabilities, they might have a bearing on the sale which has received ₹25,000 crore bids from Reliance Jio and UV Asset Reconstruction Company (UVARC). In addition to this, the business of telecom itself left the younger Ambani in all sorts of troubles - one of them being a court case in the UK. A UK High Court <a href="https://www.moneylife.in/article/anil-ambani-asked-to-pay-100-million-within-6-weeks-by-uk-hc-in-loan-default-case-filed-by-3-chinese-lenders/59472.html">asked Anil Ambani, the chairman of Reliance Communication to pay $100 </a>million within six weeks. This comes a week after Ambani declared his net worth zero. Three Chinese banks — Industrial and Commercial Bank of China (ICBC), China Development Bank and the Export-Import Bank of China — sued Anil Ambani <a href="https://www.businessinsider.in/thelife/personalities/news/anil-ambanis-journey-from-42-billion-net-worth-to-claiming-poverty/articleshow/74028627.cms">for defaulting on a loan</a> that was given to Reliance Communications. According to the banks, Mukesh Ambani’s younger brother owes them over ₹5000 crore (about $700 million). See also: <a href="https://www.businessinsider.in/business/corporates/news/airtel-and-vodafone-idea-share-price-hit-after-supreme-court-summons-sunil-mittal-and-kumar-mangalam-birla/articleshow/74129606.cms">India's Supreme Court threatened Airtel and Vodafone with 'contempt' proceedings⁠</a> <a href="https://www.businessinsider.in/stock-market/news/supreme-court-verdict-on-airtel-and-vodafone-idea-adjusted-gross-revenue/articleshow/71737421.cms">Airtel and Vodafone-Idea get a devastating blow from India's Supreme Court</a>

Every one of India’s biggest billionaires is dealing with the telecom crisis differently

<ul><li>Reliance Capital said that it repaid as much as ₹72.6 crore in loans. </li><li>RCap is holding its annual general meeting today. </li><li>The company’s stock dropped by 13% today to trade at ₹24 per share. </li><li>The total debt of RCap stands at ₹46,000 crore. </li></ul> On the day of its annual general meeting, <keyword id="9171" type="PERSON" weightage="20" keywordseo="Anil-Ambani">Anil Ambani</keyword>’s company Reliance Capital said that it repaid as much as ₹72.6 crore on September 27 and 30. This amount includes the payment the company has made in both interest and principal. “This is across a range of instruments including non-convertible debentures, term loans and inter-corporate deposits. The company is current on all its repayment obligations,” the company told the stock exchanges today. The total debt of RCap <a href="http://businesstoday.in/current/corporate/japan-nippon-completes-acquisition-of-75-stake-anil-ambani-rnam/story/381767.html">stands at </a>₹46,400 crore. The company’s stock dropped by 13% today to trade at ₹24 per share as of 12:26 pm. On Friday (September 27), the Anil Dhirubhai Ambani Group company said that it completed the sale of its 21.5% stake in Reliance Nippon Life Asset Management for ₹3,030 crore or for $430 million. “Based on the above, and other asset monetisation deals presently underway, Reliance Capital expects to reduce its debt by at least ₹12,000 crore ($ 1.7 billion) or 70%, in the current financial year,” the company said in a statement on Friday. As it closes the Nippon transaction, Reliance Capital said that it old entire stake in its wholly owned subsidiaries like Reliance Capital Trustee and Reliance Capital AIF Trustee. All of Anil Dhirubhai Ambani Group companies like Reliance Capital, Reliance Infrastructure, Reliance Power, Reliance Home Finance and Reliance Communications are holding their annual general meetings today. The shareholders of RCom which is currently undergoing bankruptcy proceedings will be presided by a debt resolution professional.

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Three Anil Ambani companies have reportedly been accused of fraud by banks⁠ — the amount at stake is nearly ten times more than what Mallya owed

Prabhjote Gill

A British judge won't believe Anil Ambani is 'broke'⁠— or that his family won't bail him out

PTI

As Reliance Jio turns three, another telecom venture of Mukesh Ambani is counting down to its end

Katya Naidu

Anil Ambani questioned by ED for his loans from troubled YES Bank

Sanchita Dash

Every one of India’s biggest billionaires is dealing with the telecom crisis differently

Preeti

Katya

Anil Ambani’s Reliance Capital repays ₹72.6 crore loans; stock tanks

Katya Naidu