The Bombay High Court last week upheld the State Bank of India’s (SBI) decision to label the accounts of Reliance Communications (RCom) as “fraud” and submit Anil Ambani’s name to the Reserve Bank of India (RBI).
On October 3, a panel of Justices Revati Mohite Dere and Neela Gokhale decided that a personal hearing was not required and that the SBI had given him enough time to present his case in accordance with the RBI’s and the Supreme Court’s directives. Ambani asserted that the bank had not given him a chance to present his arguments in a face-to-face hearing.
Why Reliance’s Anil Ambani is Facing the Heat?
The court held that once RCom – where Ambani was a director and promoter – was identified as “fraud”, his name could be disclosed to the RBI since he was “in control” of the firm during the relevant period. Due to his affiliation with RCom, which defaulted on loans and credit facilities totalling more than INR 1,500 crore that were approved between 2012 and 2016, the court’s ruling will essentially prohibit Ambani from raising money or pursuing credit facilities.
The RBI Master Directions on Frauds list this restriction on credit and funding as one of the “penal measures”. These regulations prohibit anyone who is deemed to be a fraudster and those “associated” with them from obtaining credit from banks and non-banking financial companies (NBFCs), which are governed by the RBI.
This restriction is in effect for five years after the date of the settlement of dues or the full repayment of the fraudulent sum. Ambani filed a plea in court contesting a June ruling by the SBI’s Fraud Identification Committee (FIC). In 2020, the SBI initially deemed RCom accounts to be “fraud” in accordance with the RBI’s 2016 Master Directions.
Following a Supreme Court decision in 2023 that required borrowers to have a previous hearing, this injunction was revoked. After that, the bank sent Ambani a new show-cause letter and provided him an opportunity to reply. In June, it declared that RCom’s account was fraudulent and that the RBI would be notified of his identity.
On What Basis HC Termed RCom Fraud?
Based on the financial system’s handling of “fraud”, which is regulated by the RBI’s Master Directions and altered by the Supreme Court’s historic State Bank of India & Ors. v. Rajesh Agarwal & Ors. ruling in 2023, the HC ruling was made. How banks identify, categorise, and report fraud is outlined in the RBI’s 2016 Master Directions on fraud classification and reporting by commercial banks and selected financial institutions.
In 2017, the SBI designated Reliance Communications’ account as a non-performing asset (NPA) due to the company’s failure to fulfil its commitments under the loan restructuring. As instructed by the RBI, SBI’s FIC deemed RCom’s account to be “fraud” in November 2020. In a subsequent case, the directives were contested on the grounds that they did not necessitate a hearing before labelling an account as fraudulent.
Following a historic Supreme Court ruling in the Rajesh Agarwal case, which established that borrowers must be given a chance to be heard before such categorisation, SBI retracted its classification of RCom’s account as fraudulent.
Quick Shots
•Court backs State Bank of India’s move to report
Anil Ambani to RBI over RCom fraud.
•Ambani barred from raising funds or obtaining
credit from banks/NBFCs for five years post-repayment.
•Ruling follows RBI’s 2016 Master Directions on
fraud and the 2023 Supreme Court Rajesh Agarwal judgment requiring borrower
hearings.
•SBI had issued show-cause letters and allowed Ambani
to reply before reaffirming fraud classification.
Reliance Infrastructure Ltd. and Reliance Power Ltd.’s shares are under scrutiny on 7 October following their clarification of SEBI show-cause notifications regarding suspected violations of the SEBI Act of 1992 and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.
Reliance Power stated in a filing to the BSE that it has no exposure to CLE Private Limited and that it has received a show-cause notice from SEBI regarding Reliance Infrastructure Limited’s stake in the company for suspected violations. According to Reliance Power, the business will act appropriately in this case as directed by law.
Reliance’s Response to SEBI
In a different filing, Reliance Infrastructure stated that it had previously revealed on February 9, 2025, that the conflict pertaining to the company’s exposure with CLE Private Limited had been resolved by consent terms filed before the Hon’ble Bombay High Court’s Mediation Centre in accordance with the Mediation Act, 2023.
Following an eight-month delay, Reliance Infra reported that it has now received a Show Cause Notice from SEBI for allegedly violating the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, as well as the SEBI Act, 1992. According to the Mediation Act of 2023, the settlement with CLE Private Limited has already been reached and is completely operative. Reliance Infra promised to follow legal advice and take the necessary action in this case.
Reliance Declaring CPL Issue Now Fully Resolved
Reliance Infra had earlier on February 9 declared that its dispute with CPL was fully resolved, and as a result, INR 5,777.13 crore in assets and economic interests in CPL’s assets were assigned or transferred to the company. Additionally, INR 726 crore, the decreed amount, was converted into a secured loan with customary representations, warranties, and indemnity in the company’s favour.
According to Reliance Infra, Reliance Infrastructure Limited and CPL submitted the consent terms under Mediation Application No. 181/2023 to the Hon’ble Bombay High Court in accordance with the Mediation Act, 2023, in order to settle their unresolved disagreements and claims. It stated that all pending claims and disputes against CPL had been fully and definitively settled for INR 6,503.13 crore.
Quick Shots
•Reliance Power and Reliance Infrastructure shares
under scrutiny on October 7.
•EBI issued notices for alleged violations of SEBI
Act, 1992 and SEBI Regulations, 2003.
•Reliance Power confirmed no exposure to CLE Private
Limited (CPL).
•SEBI notice linked to Reliance Infra’s stake in
CPL.
•Settlement resolved through Bombay High Court
Mediation Centre under the Mediation Act, 2023.
•Despite the prior resolution, SEBI issued a notice
after 8 months.
In a regulatory filing, Bank of India, following State Bank of India, designated Reliance Communications’ loan account as fraudulent and named its former director, Anil Ambani, on the basis of alleged fund diversion in 2016.
Ambani retaliated against the Bank of India, claiming that its actions were biased and against due process. He is being unfairly singled out, Ambani claimed.
According to a representative for Ambani, “It is astounding that certain lenders have now decided to start proceedings in a staggered and selective manner after an excessive lapse of more than 10 years.”
The INR 700-Crore Loan and Alleged Fund Diversion
In August 2016, Reliance Communications received an INR 700-crore loan from Bank of India to cover its capital and operating expenses as well as the repayment of its outstanding debts.
According to the bank’s letter that RCom revealed in the stock exchange filing, half of the sanctioned cash released in October 2016 was invested in a fixed deposit, which was prohibited by the sanction letter. On August 22, RCom reported that it had received a letter from Bank of India dated August 8 announcing the bank’s decision to label the loan accounts of the firm, its promoter and former director Anil Dhirajlal Ambani, and its former director Manjari Ashok Kacker as fraudulent.
In June of this year, State Bank of India (SBI) had previously taken the same action, claiming that bank funds had been embezzled through transactions that went beyond the terms of the loans.
Anil Ambani’s Response to Fraud Allegations
According to a statement from Ambani’s spokeswoman, the Bank of India had sent show-cause notifications to 13 of RCom’s directors and senior management but had subsequently withdrawn the letters against everyone else. Without adhering to natural justice principles, it selectively continued the proceedings against Ambani.
The statement emphasised that Ambani had no involvement in the day-to-day operations or decision-making of RCom and had only been a non-executive director on the board until his resignation in 2019. The business further claimed that the bank denied him a personal hearing prior to making its decision and neglected to provide the required paperwork.
Legal and Regulatory Context
“These actions are against established law and judicial precedents, as well as the RBI regulations issued in July 2024,” the representative stated. A committee of creditors headed by the State Bank of India and monitored by a resolution specialist is still in charge of RCom’s insolvency procedures. The Supreme Court and the National Company Law Tribunal are also considering the case. The letter further stated, “Ambani will pursue legal remedies and categorically denies all allegations and charges.”
Quick
Shots
•Bank of India (BoI) labels Reliance
Communications (RCom) loan account as fraudulent.
•Names Anil Ambani (former director
& promoter) and Manjari Ashok Kacker (ex-director).
•In 2016, RCom took an INR 700 Cr loan
from BoI.
•Half of funds allegedly placed in
fixed deposits, violating sanction terms.
The current inquiry by the Enforcement Directorate (ED) into claims of financial irregularities in the Anil Ambani Group has been stepped up. According to NDTV Profit, the corporation has also started an investigation into the INR 68.2 crore Anil Ambani fresh probe issue.
On the evening of July 28, the ED conducted a series of searches for Anil Ambani in four locations, three of which were in Bhubaneswar and one in Kolkata.
The searches were connected to a business called Biswal Tradelink Pvt. Ltd., a modest organisation under investigation for running a network of shell corporations and providing a phoney bank guarantee worth INR 68 crore to pay commissions.
INR 68 Cr Fake Bank Guarantee: What Happened
Authorities claim that Biswal Tradelink gave the Solar Energy Corporation of India (SECI) a fictitious bank guarantee worth approximately INR 68.2 crore. The company was accused of charging an 8% commission for phoney bank guarantees in the Reliance Group scandal.
Shell Companies and Cloned SBI Emails: The Scam’s Modus Operandi
The thieves used a phoney domain, s-bi.co.in, that was made to resemble State Bank of India’s official website (sbi.co.in).
By sending phoney emails that appeared to be from SECI and other organisations, the cloned domain was utilised to deceive them. By locating communications from suspects, ED officials have demonstrated that the network was using Telegram’s disappearing chat function to evade detection and maintain secrecy.
Link Between Biswal Tradelink and Reliance Group
It was thought that the bank guarantee in the Anil Ambani fraud case was set up to facilitate the transaction between Maharashtra Energy Generation Limited and Reliance NU BESS Private Limited, both of whom are associated with the Anil Ambani business group.
Based on falsified communications that were intended to mimic the State Bank of India (SBI), the agency has concluded that the bank’s guarantee was a fraudulent bank guarantee cost.
When interacting with SECI, the syndicate reportedly tried to pass off the assurance as genuine by substituting the falsified email address “s-bi.co.in” for “sbi.co.in.”
The Decline of Anil Ambani’s Business Empire
Anil Ambani’s attempts to join a number of industries, such as entertainment, defence, and infrastructure, were not very successful. When the Allahabad High Court invalidated the land purchase in 2009, it was a major blow to his plans to build a massive gas-based power station in Dadri, Uttar Pradesh. Additionally, his forays into the entertainment sector, which included agreements with Adlabs and DreamWorks, did not provide the anticipated results.
Ongoing Legal Battles and Past Controversies
When his telecom business, Reliance Communications (RCom), started to accrue significant debt, financial difficulties worsened. The business entered insolvency proceedings in 2019. In the same year, after RCom failed to pay INR 550 crore to Ericsson AB’s Indian unit, the Supreme Court threatened to put Ambani in jail, putting him under intense legal pressure.
By stepping in at the last minute to supply the required finances, Mukesh Ambani was able to keep his brother out of jail. Anil Ambani faced more legal difficulties after three Chinese banks filed a lawsuit against him in a London court over a $680 million loan default.
Anil allegedly offered a personal guarantee when the loans were given to RCom in 2012. Ambani said in court, however, that he had only offered a non-binding “personal comfort letter,” not an asset-tied assurance. This case is still pending resolution.
The rise of the Ambani brothers, Mukesh and Anil, is one of India’s most inspiring business tales. Mukesh and Anil Ambani, sons of the legendary Dhirubhai Ambani, were set to grow Reliance Industries into an even bigger empire. In 2008, Anil Ambani ranked as the sixth-richest person in the world, boasting a staggering net worth of $42 billion.
But his journey soon took a dramatic turn in 2020, when he declared bankruptcy in a UK court, marking one of the most stunning downfalls in corporate India. This is the rollercoaster story of Anil Ambani, a man who went from being one of the world’s richest billionaires to declaring bankruptcy, only to now rise again, this time building business jets and clean energy assets.
The Ambitious Climb: How Anil Ambani Took the Spotlight?
The Great Reliance Split (2005)
After the death of legendary industrialist Dhirubhai Ambani in 2002, a power struggle emerged between his two sons, Mukesh Ambani and Anil Ambani, over the control of Reliance Industries. The boardroom battle soon became public and captivated corporate India. In June 2005, their mother, Kokilaben Ambani, brokered a peace deal, leading to the formal division of the Reliance empire.
Under the demerger agreement, Anil Ambani received control of several non-petrochemical businesses, including:
Telecom – Reliance Communications
Financial Services & Insurance – Reliance Capital
Power & Infrastructure – Reliance Energy (later renamed Reliance Infrastructure)
Anil’s ambition knew no bounds. In 2008, he launched the Reliance Power IPO, which became a historic market event. The IPO was:
Oversubscribed within minutes, drawing massive interest from investors.
It had received bids for 69 times the number of shares on offer, reflecting unprecedented investor enthusiasm.
Raised INR 11,500 crores ($3 billion), making it India’s largest IPO at the time.
Riding on the IPO hype, Anil’s net worth skyrocketed to around $42 billion, briefly making him the 6th richest person in the world, ahead of even his elder brother, Mukesh. It was the peak of his financial might.
Expanding the Empire: From Telecom to Tinseltown
With massive public and investor support, Anil rapidly diversified his portfolio:
Reliance Capital entered insurance, mutual funds, and consumer finance.
Reliance Infrastructure undertook large-scale EPC and urban transport projects.
In media, he launched BIG FM, acquired Adlabs Films, and even partnered with Steven Spielberg’s DreamWorks in 2009, involving $825 million in funding from Reliance, marking one of India’s boldest global entertainment deals.
The Fall of Anil Ambani: Debt, Legal Woes & Public Humiliation
The Telecom Collapse
Reliance Communications (RCom), once India’s telecom leader, couldn’t survive the Jio-led price war. Burdened by debt and failed strategies, it collapsed. A crucial $2 billion merger with MTN in 2008 also fell apart.
Failed MTN deal due to regulatory restrictions (2008)
Lost market share after Jio’s entry (2016)
Filed for bankruptcy under IBC in 2019
Ericsson Contempt
In 2019, Anil was held in contempt by the Supreme Court over unpaid dues to Ericsson. Claiming inability to pay, he faced jail, until Mukesh Ambani stepped in. It was a moment of public embarrassment.
INR 550 crore in dues unpaid to Ericsson
Anil claimed zero liquidity
Mukesh bailed him out with INR 453 crore
Court Order
A UK court has mandated that Anil Ambani pay over $700 million to Chinese banks, marking the conclusion of a high-profile legal battle that exposed the dramatic financial downfall of a businessman who was once among the world’s wealthiest tycoons.
Regulatory Crackdown & Supreme Court Blow
Anil Ambani’s financial troubles deepened in 2024 as SEBI and the Supreme Court took major actions against him. He and 24 others were banned from the securities market over fund diversion at Reliance Home Finance. The Supreme Court also struck down a massive arbitration win for his group.
SEBI barred Anil Ambani & 24 entities from the securities market for 5 years
INR 25 crore fine imposed for mismanagement at Reliance Home Finance
The Supreme Court overturned an INR 8,000 crore arbitration award to Reliance Infrastructure.
Ordered INR 3,300 crore refund to Delhi Metro Rail Corporation (DMRC)
Following a period marked by financial distress and legal hurdles, Anil Ambani set a bold new direction for his business empire in 2024–25. Shedding the high-debt, high-risk model of the past, he pivoted Reliance Group’s focus toward three strategic pillars:
Defense manufacturing
Green and renewable energy
Asset-light, debt-conscious operations
This renewed approach aligns closely with India’s national priorities, including ‘Make in India’, Atmanirbhar Bharat, and the global push for clean, sustainable energy solutions.
Reliance Power’s Turnaround
Q4 FY25 saw a dramatic turnaround: Reliance Power swung from an INR 397.6 crore loss to an INR 125.6 crore profit, committed to becoming debt-free via capital raises & cost control.
The agreement includes the delivery of 930 MW of solar power combined with a 465 MW/1,860 MWh battery energy storage system (BESS), making it Asia’s largest solar-BESS project at a single location to date, the company stated.
Reliance Power Q4FY25 Financials:
Particulars
Q4 FY25 (INR Cr)
Q4 FY24 (INR Cr)
YoY Change (%)
Revenue from Operations
1,978.01
1,996.65
-0.9%
Other Income
87.63
197.20
-55.6%
Total Income**
2,066.64
2,193.85
-5.8%
Total Expenses
1,998.49
2,615.51
-23.6%
Profit Before Tax
67.15
(463.05)
NA
Profit After Tax (PAT)
125.57
(397.56)
NA
Total Comprehensive Income
122.41
(396.62)
NA
Reliance Infrastructure’s Revival
Reliance Infrastructure also staged a comeback in FY25:
Cut standalone net debt from INR 3,831 crore to zero/near zero
Posted an INR 4,387 crore consolidated profit in Q4 FY25
Plans are underway to become fully debt-free and tap into defense & metro-rail projects, including INR 10,000 crore potential from MoD contracts
Reliance Infrastructure Financials FY25
Particulars
Q4 FY25 (INR Cr)
Q4 FY24 (INR Cr)
YoY Change (%)
Consolidated Net Profit
4,387.08
(220.00)
NA
Consolidated Operating Income
4,108.01
~4,666.00 (approx)
-12% (approx)
Adjusted EBITDA
8,876.00
~1,137.00 (approx)
+681% (QoQ)
FY Consolidated PAT
4,938.00
(1,609.00)
NA
Standalone Net Debt
0.00
~3,300.00
Reduced to zero
Big Moves in Defense & Aviation
In June 2025, Reliance took a major step into aerospace:
Partnered with Dassault Aviation to build Falcon 2000 business jets in India, the first assembly outside France
Set up the final assembly line at the DRAL facility in Nagpur, targeting the first “Made‑in‑India” Falcons by 2028
The venture was hailed as “Make in India” and triggered a 4.2% jump in Reliance Infra shares
In parallel, Reliance signed an INR 10,000 crore agreement to:
Manufacture Vulcano 155 mm precision-guided artillery shells at a greenfield plant in Maharashtra, projected to be India’s most advanced private defense production hub.
The plant is a part of the upcoming Dhirubhai Ambani Defence City (DADC) in Ratnagiri. It is expected to produce 200,000 shells annually, along with 10,000 tonnes of explosives and 2,000 tonnes of propellants.
These high-stakes ventures mark Reliance’s decisive push into critical defense and aerospace manufacturing, aligning with India’s Atmanirbhar Bharat (self-reliant India) initiative and supporting Anil Ambani’s broader corporate revival strategy.
As Anil Ambani reshapes his business empire, his sons Jai Anmol Ambani and Jai Anshul Ambani have stepped up as key drivers of the group’s revival. The next generation of the Ambani legacy is quietly but firmly taking charge, bringing fresh energy, strategic clarity, and a modern lens to the Anil D. Ambani Group (ADAG).
Jai Anmol Ambani – The Financial Brain
Anil Ambani, Tina Ambani and Jai Anmol Ambani
The elder son, Jai Anmol, previously a director at Reliance Capital and Reliance Nippon Life AMC, has taken a more hands-on role in the group’s financial restructuring.
He began his career as an intern at Reliance Mutual Fund in 2014 and rose to become Executive Director at Reliance Capital in 2017
Instrumental in raising stakes in Nippon India Asset Management.
He is popular for his focused style of leadership in financial ventures.
Conclusion
Anil Ambani’s story is a rare mix of extreme success, public downfall, and quiet reinvention. Once the 6th richest man in the world, he lost it all, facing bankruptcy, legal troubles, and market bans. But he didn’t give up. Today, with a renewed focus on defense, green energy, and debt-free growth, Anil is slowly rebuilding.
FAQs
What is Anil Ambani’s current role in Reliance Group?
Anil Ambani is Chairman of the Reliance Group, overseeing all its major listed companies, Reliance Communications, Capital, Infrastructure, Power, Defence & Engineering, among others.
How has Anil Ambani’s net worth changed in recent years?
As of March 2025, Anil Ambani’s net worth has plunged to approximately $530 million, down from a peak of $42 billion in 2008, with most of the decline unfolding over the past decade.
What is the status of Anil Ambani’s legal or bankruptcy cases?
Anil Ambani is facing multiple legal issues. In July 2025, SBI flagged Reliance Communications’ loan account as fraud. SEBI banned him from the securities market for 5 years in 2024 over fund diversion. NCLT admitted insolvency proceedings against Reliance Infrastructure, though NCLAT later paused it. He also withdrew a tax notice challenge in April 2025 and was fined.
Reliance Communications Ltd. (RCOM) announced in a regulatory filing on July 1 that the State Bank of India (SBI) had labelled the loan account of RCOM as “fraud” and was taking steps to submit the identity of the company’s former director, Anil Dhirubhai Ambani, to the Reserve Bank of India (RBI).
According to SBI’s letter dated June 23, 2025, which was attached to the application, the bank’s Fraud Identification Committee has determined that the loan account of Reliance Communication Limited is fraudulent.
Reliance Telecom Ltd. (RTL) and other group firms are among the associated entities mentioned in the letter, which was received on June 30. Other irregularities mentioned include possible fund diversion and loan term violations that resulted in the fraud classification.
According to SBI, the decision was made after forensic audits and a review of several show-cause notices.
Response from Reliance Communications
According to Reliance Communications, since 2019, the business has been subject to the corporate insolvency resolution process (CIRP). Creditors have adopted a resolution plan, which is pending National Company Law Tribunal (NCLT) final approval.
According to the SBI letter dated June 23, 2025, the credit facilities or loans mentioned therein relate to the time frame before the CIRP. According to the Insolvency and Bankruptcy Code (IBC), these must be settled either in liquidation or as part of a resolution plan.
As per Reliance Communications, the corporation is shielded from the institution and continuation of any lawsuits or other actions taken against it during the CIRP.
Following the NCLT’s acceptance of the resolution plan, the corporation will be immune from liability for any alleged crimes committed before the CIRP begins, according to the protection afforded by Section 32A of the IBC. The business also stated that in light of the latest development, legal counsel is being sought for the future.
Journey of RCOM
Dhirubhai Ambani formed the Reliance Group, which includes the Indian telecom business Reliance Communications Limited which was established in 2004.
Following the Reliance Group split, RCOM, under the leadership of Anil Ambani, provided enterprise services, internet, and mobile and underwater cable connectivity. It suffered from high debt, increased competition, particularly from Reliance Jio, and a declining market share in the late 2010s.
According to the Insolvency and Bankruptcy Code, the business went through the corporate insolvency resolution process in 2019. Anish Niranjan Nanavaty, a resolution specialist, has been running the company since the board was suspended.
Many of RCom’s licences have expired or been surrendered, and the company is still in the process of going bankrupt. Its assets are being evaluated for sale or restructuring in order to pay off its creditors.
Indian billionaires have carved a niche in global luxury real estate by combining opulence, strategic investments, and immense wealth. Whether in Mumbai’s bustling streets or the quiet countryside of Switzerland, these magnates’ properties embody their global influence and architectural marvels. In addition to serving as personal retreats, their residences showcase a blend of cultural heritage and modern luxury, often located in the world’s most coveted locations.
In this article, we take you inside the most stunning homes owned by Indian billionaires. Think palatial estates, futuristic penthouses, and historic villas, each with its own story of ambition, prestige, and India’s rising global influence.
Mukesh Ambani, chairman of Reliance Industries and India’s richest man with a net worth of $113.6 billion (as of 2025), is not just known for his business expertise, but also his taste in real estate is just as headline-worthy. From owning one of the most expensive private residences in the world to acquiring luxury properties in global hotspots, Ambani’s real estate empire is a reflection of both personal lifestyle and business foresight.
Antilia
Mukesh Ambani’s Antilia
At the heart of his real estate portfolio is Antilia, a 27-story vertical mansion located on Altamount Road, Mumbai, one of the most expensive addresses in the world. Valued at approximately INR 15,000 crore, the skyscraper mansion is a marvel of modern architecture and luxury.
Designed by Perkins & Will and built by Leighton Holdings, Antilia spans 400,000 square feet and includes a multi-level garage for 168 cars, a three-helipad rooftop, a private movie theater with 50 seats, a snow room, multiple swimming pools, a yoga studio, and a multi-level garden. It’s not just a home; it’s a statement of ambition, scale, and wealth.
Palm Jumeirah Villas
In 2022, Ambani made waves when he entered the Middle Eastern property market with not one but two back-to-back acquisitions on Palm Jumeirah, one of the world’s most exclusive man-made islands in Dubai. Just a few months later, Ambani purchased a second beachfront property nearby, setting a new record for Dubai’s residential market.
Stoke Park
In 2021, Ambani expanded his empire into the UK with the acquisition of Stoke Park Estate, a 300-acre Georgian-era property located in Buckinghamshire, England. This acquisition aligns with his broader investments in lifestyle and leisure businesses, further diversifying Reliance’s global portfolio.
Mandarin Oriental, New York
Ambani also has a strategic stake in the United States through his acquisition of a majority interest in the iconic Mandarin Oriental Hotel in New York. In 2022, Reliance Industrial Investments and Holdings (RIIHL), a subsidiary of Reliance Industries, purchased the hotel for $98 million. The 248-room hotel is located at Columbus Circle in Manhattan and offers sweeping views of Central Park and the Hudson River.
In 2023, industrialist Pankaj Oswal, known for his ventures in the fertilizer and energy sectors, made headlines across Europe and India with one of the most extravagant real estate purchases of the year. He acquired Villa Vari, a palatial estate nestled in Gingins, Switzerland, between Geneva and Lausanne.
The property, estimated to be worth INR 1650 crore, is among the most expensive private residences in the region. Villa Vari spans 40,000 square meters and offers breathtaking views of Mont Blanc. This acquisition places Villa Vari among the world’s top 10 most expensive private residences.
Adar Poonawalla
Adar Poonawalla, the CEO of Serum Institute of India—the world’s largest vaccine manufacturer entered the elite real estate circuit of London in late 2023 with the acquisition of Aberconway House, a historic mansion near Hyde Park. Purchased for a staggering £138 million (approx. INR 1,446 crore), this 25,000-square-foot estate was previously owned by Polish billionaire Dominika Kulczyk.
The acquisition places Poonawalla among a growing list of Indian billionaires investing in global trophy properties, particularly in London’s exclusive neighborhoods. Known for his refined taste in luxury cars and architecture, Poonawalla’s new residence is another reflection of his affinity for timeless grandeur and international status.
Ravi Ruia, co-founder of the Essar Group, created ripples in the UK real estate market with his purchase of Hanover Lodge in Regent’s Park, London, for £113 million (approx. INR 1,200 crore) in 2023. This estate holds the title of the most expensive mansion sold in the UK that year, and rightfully so.
The palatial residence was previously owned by Russian billionaire Andrey Goncharenko, and its rich neoclassical architecture is a tribute to 19th-century European design. Set within expansive, manicured gardens, Hanover Lodge includes a swimming pool, spa, private screening room, and exquisitely decorated salons filled with antique European art and bespoke furniture. Ruia’s acquisition highlights a growing trend of Indian billionaires reclaiming elite global properties in a post-pandemic world where luxury real estate has once again become a symbol of global economic influence.
Lakshmi Mittal
Lakshmi Mittal’s Kensington Palace Gardens
A tribute to Lakshmi Mittal’s status as one of the world’s most powerful steel executives is his investment in Kensington Palace Gardens, one of the world’s most prestigious streets. Mittal owns multiple properties here, but his most iconic acquisition is the mansion at 18–19 Kensington Palace Gardens, bought for £117 million (approx. INR 1,150 crore) in 2008.
The 12-bedroom estate features marble sourced from the same quarry as the Taj Mahal, a deliberate nod to his Indian roots. In 2013, he gifted this mansion to his son, Aditya Mittal, as a wedding present.
The home includes indoor pools, Turkish baths, ballrooms, and an array of opulent chambers showcasing European and Mughal-influenced interiors. For Mittal, these residences are not just living spaces but enduring symbols of success, culture, and global standing.
Hinduja Brothers
Hinduja, one of the wealthiest families in both the UK and India, owns the majestic Carlton House Terrace in London with a net worth exceeding £37.1 billion. It’s a six-storey Georgian mansion, actually an interconnected block of four townhouses, just steps from Buckingham Palace.
Purchased in 2006, the property underwent a £50 million renovation, transforming it into a residence that marries historical grandeur with cutting-edge technology. The restoration involved conservators, artisans, and historians to preserve the building’s 19th-century charm while integrating modern luxuries like automated climate control, home theaters, and a private spa.
Gautam Singhania
Gautam Singhania’s Luxury House
Gautam Singhania, Chairman and Managing Director of the Raymond Group, is known for his taste in luxury, whether it’s bespoke fashion, rare supercars, or prime real estate. True to that reputation, his Mumbai residence is a 30-storey skyscraper located on Altamount Road, one of India’s most exclusive and expensive residential areas, often compared to London’s Billionaires’ Row.
Valued at a jaw-dropping INR 6,000 crore, it is the second most expensive private residence in India, just behind Mukesh Ambani’s Antilia. This towering mansion isn’t just a residence, it’s a vertical palace that redefines urban luxury.
Anil Ambani
As former chairman of Reliance Communications, Anil Ambani continues to live a life of grandeur reflected in his 17-storey residence in Bandra, one of Mumbai’s most coveted neighborhoods and home to many celebrities.
This newly built home, which he shares with his wife Tina Ambani, a former Bollywood actress and philanthropist, is worth possibly INR 5,000 crores, making it the third most expensive private residence in India, after Antilia and Gautam Singhania’s Altamount Road tower.
Built as a luxury high-rise, this 17-floor mansion sprawls vertically, a hallmark of Mumbai’s elite real estate culture where land is scarce but vertical space is limitless. Each floor in the Ambani residence is tailored with ultra-premium amenities, the kind you would only expect in a seven-star hotel.
Conclusion
There is a story behind every property that reveals its global reach and personal legacy. As India’s economic influence grows, so does the architectural imprint of its wealthiest citizens are creating skylines and redefining luxury across the world.
Which Indian billionaires are known for owning exceptionally luxurious homes globally?
The article highlights Mukesh Ambani, Pankaj Oswal, Adar Poonawalla, Ravi Ruia, Lakshmi Mittal, the Hinduja Brothers, Gautam Singhania, and Anil Ambani as Indian billionaires with extravagant properties worldwide.
Where are some of the key locations of these billionaires’ luxurious homes?
Their properties are located in prime areas such as Mumbai (India), Perth (Australia), London (UK) and other exclusive locations around the world.
Is Gautam Singhania’s residence as extravagant as his lifestyle?
Yes, Gautam Singhania owns JK House in Mumbai, a towering residence with multiple swimming pools, private theaters, and a unique architectural design reflecting his interests.
People usually think that they just need a paycheck to become rich. If they keep making money and spending it simultaneously, they’ll be rich. But we very well know the secret to becoming rich is way beyond just paychecks. A better understanding of this can be taken from the example of those billionaires who didn’t think twice before spending and ultimately, filed for bankruptcy.
This article covers those billionaires who declared bankruptcy or claimed to be completely broke at some point in their lives. Now, you might be thinking, what makes a person bankrupt, especially when they have billions of dollars? Various factors come here such as lousy investment, massive fraud cases, economic downturn, and many more. But the bottom line here is, that they didn’t plan any backups and went on and on with their money. And that’s what sank their ship!
As we have a basic understanding here, let’s get on with knowing the stories of how these billionaires become bankrupt.
We can get started with Mike Tyson, the super famous fighter who used to earn up to $22 million per fight, which ultimately became a lifetime earning of half a billion dollars. Even after such big paychecks, he filed for Chapter 11 bankruptcy in 2003 as per the Benjamin Law. The reason for this bankruptcy is the huge debt that sank him.
The debts were so high that the law firm reported that Mike Tyson owed $38.4 million to the creditors which included the Internal Revenue Service along with his ex-wife, Monica Turner.
Elizabeth Holmes
Occupation
Founder and CEO, Theranos
Bankruptcy Year
2013
Reason for Bankruptcy
Fraud
Elizabeth Holmes – Billionaire Who Became Bankrupt
The woman who made it to the cover of Forbes for founding the incredible startup worth $9 billion, Elizabeth Holmes, was forced to declare bankruptcy. She was convicted of criminal fraud through her company, Theranos. Her company claimed to be developing a revolutionary blood test that will come in the form of testing hundreds of diseases and medical conditions with just a few drops. But later it was proved that the company was not even close to developing such technology. This resulted in Elizabeth Holmes awaiting sentencing for facing up to 20 years in prison.
Aubrey McClendon – Billionaire Who Became Bankrupt
The next in the line is Aubrey McClendon, co-founder of Chesapeake Energy, which is an oil and gas company with a net worth of $1.2 billion. He was accused of unfair manipulation of bids for drilling rights along with charges of federal conspiracy. However, due to an unfortunate car accident, McClendon died a day later of the accusations.
A very well-known name in India, Vijay Mallya was an airline and liquor tycoon famous for his luxurious and high-flying lifestyle. He was the owner of Kingfisher Airlines, which is a now-defunct Indian airline.
Eike Batista, the name that was made the seventh richest person in the world, ultimately declared bankruptcy. He was an oil baron with the oil company, OGX. However, due to his failure in managing the production target, he started losing money. And the situation worsened when Brazil’s economy suffered a tough time.
And when in the year 2012, Eike Batista’s net worth was estimated to be $30 billion, it fell into money laundering and corruption and he filed for bankruptcy.
Sean Quinn
Occupation
Founder, Quinn Group
Bankruptcy Year
2011
Reason for Bankruptcy
Debts
Sean Quinn – Billionaire Who Became Bankrupt
This Irish Businessman who was once noted as the richest man in Ireland according to Forbes went bankrupt because of huge debt from the banks. Starting with cement manufacturing, Quinn’s biggest decision of entering the hospitality industry turned the way. In 2008 it was estimated the Quinn group owed 2.8 billion British pounds to the Anglo-Irish Bank. A lavish lifestyle without debt repayment and owning luxurious hotels as a new venture put down Quinn completely.
Another hard fate that hit Quinn was Quinn’s insurance levied a sum of 3.25 million pounds and 200000 million pounds personally. This was due to Quinn Insurance issuing loans against the Financial regulation of Ireland. The wholesome amount was used in investing in stocks and for other luxuries.
In the year 2012, the Ireland government declared Sean Quinn bankrupt and was sent to jail for 9 weeks. Perhaps Quinn used the law “Right to be Forgotten” to delete his lavish lifestyle details from the internet.
Bernie Madoff
Occupation
Founder, Bernard L. Madoff Investment Securities
Bankruptcy Year
2008
Reason for Bankruptcy
Ponzi Scheme
Bernie Madoff – Billionaire Who Became Bankrupt
Bernie Madoff, the biggest fraudulent sentenced to 150 years punished ever in the history of mankind. This man ran the biggest and longest Ponzi Scheme over 17 continuous years. The Ponzi Scheme was worth 65 billion dollars. He netted many investors to invest in the scheme by attracting them to an investment firm named Penny Stock Brokerage. The fraud worth was 65 billion dollars. But it was all known to the world when Madoff confessed the whole matter to two of his sons and that’s where the game began. The unimagined thought of Madoff was his sons Mark and Andy revealed the entire story to the FBI. The shocked FBI arrested Madoff and punished him serving 150 years sentence with forfeiture of 170 billion dollars. Many of his investors killed themselves, Mark’s suicide two years after the tragedy, and the entire fraud life of Madoff remains.
Björgólfur Guðmundsson
Occupation
Chairman, Landsbanki
Bankruptcy Year
2008
Reason for Bankruptcy
Global financial crisis and business troubles
Bjorgolfur Gudmundsson – Billionaire Who Became Bankrupt
Iceland’s second richest man Björgólfur Guðmundsson went bankrupt for over 500 million Euros in the year 2008. He was already jailed for about a year on a bookkeeping offense in the early 1990s. After becoming the chairman of the bank Landsbanki, Björgólfur Guðmundsson misused a lot of money and became a disaster for Iceland’s economy. He owed more than 500 million dollars personally which devastated his faith.
Robert Allen Stanford alleged massive ongoing fraud of 7 billion dollars and over amounts uncalculated. This biggest fraud ran the biggest Ponzi scheme under the name of Stanford Financial Groups which is defunct now. In 2009 FBI and SEC imposed several violations of acts on Stanford such as a money laundering case, a Ponzi scheme, violated financial securities, and many more. This mesmerizing brain manipulated many clients by showing hypothetical records as real data to pitch them and invest in him. Although tried to fly off from the US to Antigua with failed attempts he surrendered himself to the FBI in 2009 and the same year the Judicial Law of Florida sentenced him to 110 years. Being absent of guilt he even applied for an appeal in 2014 but got rejected in 2015.
Sam Bankman-Fried
Occupation
Founder, FTX
Bankruptcy Year
2022
Reason for Bankruptcy
Liquidity crunch
Sam Bankman-Fried – Billionaire Who Became Bankrupt
Sam Bankman-Fried had made his fortune through FTX exchange and Alameda Research trading firm and established himself as Crypto King. FTX crashed in November 2022 due to a liquidity crunch. The crypto exchange collapsed after it emerged Alameda had been using FTX customer assets to cover trading losses. Its users began withdrawing their investments at a rapid pace. As a result, Sam filed for bankruptcy for both of his firms.
On Nov 11, 2022, FTX filed for Chapter 11 bankruptcy protection in the US. The fall of FTX and bankruptcy filing have impacted the crypto industry worldwide.
Before FTX’s collapse, he ranked the 41st richest American in the Forbes400 and the 60th richest person in the world by The World’s Billionaires. His net worth peaked at $26.5 billion.
The US Court has charged him with Securities fraud, Wire fraud, and Conspiracy. He faces a maximum of 115 years in prison if convicted on all eight counts and sentenced to serve each charge consecutively. He has been released on a $250 million bond and is under house arrest. On Jan 03, 2023, he pleaded not guilty to fraud and other charges.
Jocelyn Wildenstein
Occupation
Socialite
Bankruptcy Year
2003
Reason for Bankruptcy
Debt
Jocelyn Wildenstein – Billionaire Who Became Bankrupt
The woman was famous as a “Catwoman” because of her looks, Jocelyn Wildenstein was a big socialite. Based on reports, she used to spend $1 million on shopping and $5,000 on her phone bill per month. She is a former wife of the late Alec Wildenstein, who used to be a billionaire in his days.
Later in 2018, Jocelyn Wildenstein declared bankruptcy and claimed that she had $0 in her bank account.
Anil Ambani
Occupation
Businessman
Bankruptcy Year
2020
Reason for Bankruptcy
Bad Investments, Debt
Anil Ambani – Billionaire Who Became Bankrupt
The younger son of Dhirubhai Ambani, Anil Ambani hasn’t had much luck since 2002. After his father’s death, the $15 billion Reliance business split, with Anil getting control of companies like Reliance Communications, Reliance Capital, and Reliance Infrastructure, while his brother Mukesh took over Reliance Industries.
In the past 15 years, he has gone from being the world’s sixth richest person with $42 billion in 2008 to facing bankruptcy, selling family assets to pay lawyers, and seeing his companies auctioned. He was even threatened with jail by the Supreme Court. Recently, the Securities and Exchange Board of India (SEBI) banned him from the stock market for five years in August 2024.
Conclusion
We can say that with mere paychecks, one doesn’t stay rich. Some of the billionaires are or were forced to file for bankruptcy in their lives. Many of these served jail time because of money laundering and severe debts, such as Allen Stanford, Eike Batista, and many more. To make you familiar with this, we rounded up these above-mentioned billionaires who filed for bankruptcy.
FAQs
Has a billionaire ever gone broke?
Usually, billionaires and their teams are smart enough to protect their wealth. However, unfavorablesituations can make them bankrupt. Adverse economic scenarios, bad investment decisions, or fraud can make billionaires file for bankruptcy.
Which billionaires went Bankrupt?
Some billionaires who became bankrupt are:
Mike Tyson
Elizabeth Holmes
Aubrey McClendon
Vijay Mallya
Eike Batista
Sean Quinn
Bernie Madoff
Björgólfur Gudmundsson
Allen Stanford
Sam Bankman-Fried
Jocelyn Wildenstein
Anil Ambani
Was Vijay Mallya a billionaire?
Yes, Vijay Mallya was a billionaire with a net worth ranging from $1 billion to $1.5 billion. in years 2006-2012.
How many billionaires are there in the world?
There are 2781 billionaires in the world as of 2024.
The State Bank of India which is one of the largest Public Sector Banks in the country and is one of the leading banks of the country. The bank had tagged Reliance Infratel Limited which is a company under the Anil Ambani group as Fraud and has recently announced that the bank is withdrawing the tag. Let’s look at why SBI is removing the Fraud tag from the company.
On 9 June 2021, the State Bank of India had conveyed that they would choose to withdraw the tag placed on Reliance Infratel which is a Reliance company that comes under the Anil Ambani group which is a Reliance communications tower and Fiber company. The bank had filed an affidavit in NCLT Mumbai stating that they would want to remove the Fraud tag on the company.
Why did SBI tag Reliance Infratel as Fraud?
Reliance Infratel is a bankrupt company that owes a lot of debt in the market majorly to many other investors. The company has around 13 lenders and some of the claims from the investors include State Bank of India – INR 3,628. 68 crores, Syndicate Bank – INR 1,225.18 crore, Bank of India – INR 1,064. 82 crore and also from the Industrial and Commercial Bank of China (ICBC) – INR 1,832.91 crore. These are the major lenders of the company.
Apart from these, there were a lot of financial creditors the company owed money to. Since the company owed a lot of money and had also recorded bankruptcy the State Bank of India had tagged the company as Fraud.
The Reliance Industries Group which is owned by Mukesh Ambani had been a resolution partner for Reliance Infratel. Reliance Industries Reliance Projects and Property Management Service had been successful in being the resolution partner in the Corporate Insolvency Resolution Process (CIRP) and also won the right to acquire a 100 % stake in the shareholding of Reliance Infratel Ltd.
The resolution order was given by the NCLT which awarded the Reliance Infratel company to the Reliance Industries owned by the Mukesh Ambanias on 3 December 2020 but then SBI had already classified the company as Fraud on 10 November 2020 and later on SBI had withheld this information before the NCLT before it gave the order.
The Fraud tag being classified by the bank and withholding it from the NCLT is considered to be a grave error and the State Bank of India also did not upload the same on the CRILIC website for 45 days until 21 December 2020 which is considered to be against the norms and violating the principles. Later the bank also filed a complaint to the CBI on the directors of Reliance Infratel.
One of the major reasons for the removal of the tag was because after the complaint being filed to the CBI, Reliance Infratel had moved to the High Court of India on 6 January 2021 and got a stay regarding the actions taken by the State Bank of India.
The court also ordered the CBI to not to take any actions on the complaint filed by the State Bank of India. Later on, the State Bank of India had moved towards withdrawing the Fraud tag which it had posted against Reliance Infratel by filing an affidavit in order to declassify it before the NCLT Mumbai.
Resolution plan of Reliance Infratel and Reliance communication
The dedicated insolvency court had provided a nod to the resolution plan of Reliance Infratel by providing 100 % shareholding towards Reliance Communication. The Reliance Jio Infocomm has received the permission to pick the tower and the fiber assets of the Reliance Infratel which is a bankrupt company.
Conclusion
It is said that the lenders are expected to take a 60 % of the 100% stake through the Asset monetization plan of the tower company. According to the plan provided by NCLT, the lenders are expected to recover an amount of INR 4000 crore through the resolution plan of the company.
FAQ
Who owns Reliance Infratel?
The Reliance Jio Infocomm received the permission from the court to pick the tower and the fiber assets of the Reliance Infratel which is a bankrupt company.
Why did SBI tag Reliance Infratel as Fraud?
Since the company owed a lot of money and had also recorded bankruptcy the State Bank of India tagged the company as Fraud.
Why did SBI Withdraw the fraud tag?
As the Reliance Industries Group which is owned by Mukesh Ambani had been a resolution partner for Reliance Infratel and has acquired a 100 % stake in the shareholding of Reliance Infratel Ltd, SBI had to withdraw the fraud tag.
There was a recent news headlines which said SEBI has slapped INR 25 crore fine on Ambani’s due to the 2000 case over the allegation of violation of the takeover code regulations. Let’s look at the below article to get a clear understanding about the regulation and the reason for imposing the fine.
Substantial Acquisitions of Shares and Takeovers (SAST) Regulations 1997
According to the Substantial Acquisitions of Shares and Takeovers (SAST) Regulations 1997, If a company’s promoter group acquires more than 5% of the voting rights in the company, during a financial year. Then the company will have to make an open offer to the minority investors which will give them an option to exit the company if required.
What Happened with the Ambani family?
SEBI has fined the Ambani family which include Mukesh Ambani, Nita Ambani, Anil Ambani, Tina Ambani and the various other firms linked to the Ambani group. It is because they have been alleged for violation of the takeover code regulations in 2000.
The case is because of the increase in the promoter stake of the Reliance Industries Ltd. (RIL) which is during January 2000. The promoter stake in the company was increased after the conversion of various warrants which was issues during 1994.
In January 2000, the promoter stake of Reliance Industries Ltd (RIL) had increased to 6.83% from the maximum limit of 5% according to SEBI. Securities Exchange Board of India has even alleged that the company or the promoter group had failed to make an offer to the minority investors providing them an opportunity to exit the company.
SEBI has said that the promoter group of Reliance Industries Ltd had failed to make an open offer as required under the norms issued.
SEBI has said that in the instant case the violation was not just committed for a particular year or once and for all but it continues till date, that is even now the promoters of Reliance Industries have the majority voting rights in the company.
In an 85-page adjudication order it was written that the violation of the statutory provisions by which the acquisitions of securities giving the notices that is the Ambani family has provided enhanced control by the exercise of voting rights, etc.
Which is a disobedience against the regulation and these are violations which are being continued so long as the voting rights are acquired by violating the letter and the spirit of the law.
SEBI has said that the notices have been alleged because they have been failed to make a public announcement, when they were acquiring more shares of the company to increase the promoter holdings. This has led the other shareholders to be deprived of their statutory rights and opportunity to exit from the target company.
This has led the promoter group of Reliance Industries Ltd to breach the provisions of Substantial Acquisitions of Shares and Takeovers (SAST) Regulations 1997. All these charges against the notices will make the instant matter grave.
The SEBI order has said that it has been difficult to ascertain the value of the unfair advantage made by RIL promoter group due to this violation.
SEBI had said that while determining the amount of penalty they have not found any amount which can be expressed as figures or any data which can be used to record the gain received by the promoter group because of this violation and the amount of loss which has been caused to the minority shareholders in the company as a result of the default that was committed.
Under Section 15H of the SEBI Act which was amended in October 2002, a maximum penalty of INR 25 crore or three times the number of profits made out of the failure is allowed.
The Regulator has said that the penalty of INR 25 crore will have to be paid together by the 34 individuals who are named in the SEBI order which includes the mother of Mukesh Ambani and Anil Ambani and even the children of Mukesh Ambani and Anil Ambani. The amount is said to be paid within 45 days.
SEBI and Ambani
In November 2020, in reply to the regulator SEBI said the Ambani family that the issue of warrants and the issue of shares on conversion of warrants were not to subject to SEBI’s Substantial Acquisitions of Shares and Takeovers (SAST) Regulations 1997.
The Reliance promoter group had responded to SEBI saying that the initiation of the adjudication proceedings in the particular case with a large misappropriate delay was unreasonable, arbitrary and causes substantial prejudice to the notices.
FAQ
What is the number of Mukesh Ambani in world richest person?
Reliance Industries (RIL) Chairman Mukesh Ambani is the eighth richest person in the world with a fortune of $83 billion, according to the Hurun Global Rich List 2021.
Who is the CEO of Jio?
Atul Kansal is the current CEO of Jio.
How much did Ambani earn in lockdown?
According to the Oxfam report, Ambani earned Rs 90 crore per hour during the coronavirus pandemic.
Conclusion
The market regulator had issued the show cause notices (SCN) regarding this matter in February 2011. That is almost 11 years after the allegation of violation.
