Anil Ambani’s Reliance Communications (RCom) is in insolvency. The brand was launched in 2020 with cut-price plans in mobile carrier services.
On Thursday, an Indian court stopped Reliance Group Chairman Anil Ambani’s insolvency proceedings. Anil Ambani is the younger brother of India’s richest man. The Indian court has barred Anil Ambani to dispose of any of his assets.
Anil Ambani runs a business group different from his billionaire brother Mukesh Ambani, who had filed a plea with the Delhi Supreme Court challenging the appointment of a resolution professional over around Rs. 1,200 crores ($163 million) personal guarantee.
Anil Ambani’s Reliance Communications (RCom) is currently in insolvency. The brand was launched in 2002 with cut-price plans on mobile carrier services.
The RCom’s heavy debt load a string of losses got into trouble after Mukesh Ambani’s Reliance industries launched it JIO telecoms in 2016, breaking the Indian telecoms industry in and out with cheapest data plans and free voice services.
Most of Anil Ambani’s other businesses in the sectors like entertainment, defence, and infra are also struggling.
Ambani, the joint-heir to Reliance Industries, was forced to split in the group after his father Dhirubhai Ambani’s death in 2002.
In 2005, the deal brokered by Anil & Mukesh’s mother, Anil Ambani won control of the financial and power services and then built the telecom business, while Mukesh Ambani retained the petrochemical and oil business.
But Anil Ambani’s fortunes have receded since and he almost escaped the jail sentence last year when his elder brother came to his rescue.