Timeline: SEBI's ban on India's Anil Ambani and his Reliance Group troubles

Reliance Infrastructure

26/08/2024 13:15

BENGALURU, Aug 26 (Reuters) - Anil Ambani, one of
India's best-known businessmen and chairman of Reliance Group,
was banned from the securities market for five years and fined
about $3 million by the country's markets regulator last week on
charges of diversion of funds.
    Anil Ambani said he was reviewing the order and will take
appropriate next steps as legally advised.
    Once ranked sixth-richest person in the world in 2008, Anil
Ambani has faced numerous legal and financial hurdles, leading
him to announce bankruptcy in a UK court in 2020.
    
    Here is timeline of events that led to the latest blow to
his crumbling empire:
    
    2005: The Ambani family reaches settlement to split the
Reliance group between Mukesh Ambani, now Asia's richest person,
 and his brother Anil Ambani.
    Anil Ambani starts leading a group which included Reliance
Communication and Reliance Infrastructure, while Mukesh Ambani
leads Reliance Industries with major businesses in oil and gas.
    2014-17: Within 10 years, Anil Ambani's power and
infrastructure firms start accumulating significant debt.
    Soon afterwards, one of his other firms - Reliance Naval and
Engineering - faces insolvency proceedings.
    2017-19: Reliance Communications takes a loan from Dena Bank
of 2.50 billion rupees, which remained unpaid for several years,
leading to the initiating of a sale of telecom assets worth 240
billion rupees to reduce debt.
    Anil Ambani faces several legal challenges, which included
the possibility of imprisonment for failing to pay Ericsson AB
while also being sued by Chinese banks over defaults.
    Meanwhile, auditor PwC withdraws from the audit of a group
company - Reliance Capital -- after not receiving a
"satisfactory response" to its queries on certain observations
in its assessment of its fiscal 2019 accounts.
    Reliance Communications also goes to bankruptcy court to
resolve its debt burden.
    August, 2020: The Delhi High Court halts insolvency
proceedings against Anil Ambani in a matter pertaining to a
roughly 12 billion rupee-personal guarantee he had given to
State Bank of India  SBI.NS  for loans to his companies.
    November, 2021: India's central bank says it will initiate
bankruptcy proceedings against Reliance Capital.
    February, 2022: In an interim order, SEBI bars Anil Ambani
and other company management from associating with any listed
entity, acting as their directors and from associating with any
market intermediary till further orders on charges of alleged
diversion of funds.
    March, 2022: Anil Ambani steps down from the boards of
Reliance Infrastructure and Reliance Power.
    August 23, 2024: SEBI bans Anil Ambani from the securities
market for five years on charges of diversion of funds.

    Source: regulatory filings, media reports

 (Reporting by Varun Hebbalalu and Indranil Sarkar in Bengaluru,
Editing by William Maclean)
 ((Indranil.Sarkar@thomsonreuters.com; Mobile:  +91
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