Tuesday, July 16, 2024
HomeEnglish NewsBusinessSetback for Anil Ambani, Group Firm Loses ₹ 8,000 cr Arbitral Award

Setback for Anil Ambani, Group Firm Loses ₹ 8,000 cr Arbitral Award

In 2008, Anil Ambani, who was once ranked as the sixth wealthiest individual globally, faced a series of setbacks that reversed his financial situation. Among these setbacks was a recent ruling by the Supreme Court overturning a ₹ 8,000 crore arbitral award favoring a company within his conglomerate.

The recent Supreme Court decision nullified a ₹ 8,000 crore arbitral award that had been granted to Delhi Airport Metro Express Pvt (DAMEPL), a subsidiary of Anil Ambani’s Reliance Infrastructure. The award stemmed from a disagreement over a “concession agreement” signed between DAMEPL and Delhi Metro Rail Corp in 2008. Consequently, DAMEPL has been instructed to reimburse all funds previously received from Delhi Metro Rail according to the arbitration award, amounting to ₹ 3,300 crore.

Reliance Infrastructure Ltd, in a statement to the stock exchange, clarified that the Supreme Court ruling did not impose any financial liability on the company itself. Instead, the liability falls on DAMEPL, which operates as a separate entity under Reliance Infrastructure.

Anil Ambani’s involvement in the management of Reliance began in earnest after his father’s stroke in 1986, with him assuming responsibility for the company’s financial dealings under his father’s guidance. Following Dhirubhai’s passing in 2002, Anil and his elder brother Mukesh jointly led the Reliance group of companies. However, disputes over control arose between them, culminating in a split in 2005. Mukesh gained control of the flagship oil and petrochemical businesses, while Anil took charge of newer ventures such as telecommunications, power generation, and financial services.

The sibling rivalry persisted, notably over the supply of gas from Mukesh’s fields to Anil’s power plants. In a legal battle, the Supreme Court ruled in favor of Mukesh, asserting that a family agreement cannot supersede government allocation policies.

RELATED ARTICLES

Most Popular

Recent Comments