Anil Ambani's ADAG Group: The Fleet that Dodged Icebergs, but Lost its Moorings and Moral Compass
ADAG Flotilla that Managed to Stay Afloat, while it Jettisoned Creditors.
About the Author:
Karan Bir Singh Sidhu is a retired Indian Administrative Service (IAS) officer with nearly four decades of service, including as Special Chief Secretary, Punjab. He holds an MA in Economics from the University of Manchester, UK. He writes at the intersection of corporate debt and equity dynamics, global economics, and international financial markets.
Author’s Note:
In 2008, Anil Ambani’s ADAG Group was seen as a juggernaut—a sprawling fleet cutting through India’s corporate waters with unmatched speed. Less than two decades later, much of that fleet lies in ruins, battered by storms of debt, disruption, and court battles. And yet, remarkably, parts of the ADAG Group still float. How did it come to this—and what deeper lessons lie beneath the surface of this Titanic story of Indian business?
From Billionaire to Self-Proclaimed “Pauper”: Anil Ambani’s Financial Collapse
Anil Ambani, once ranked among the world’s richest with a net worth of $42 billion in 2008, has endured one of the most remarkable financial declines in modern Indian corporate history. Following the division of the Reliance empire after the death of patriarch Dhirubhai Ambani, Anil inherited businesses spanning telecom, power, infrastructure, and finance. Yet, an aggressive pursuit of expansion, compounded by excessive leverage and disruptive sectoral changes, triggered a rapid unravelling of his fortunes.
A London Court Case:
In 2020, the gravity of Anil Ambani’s personal financial plight became public when he solemnly swore before the UK High Court that he was worth “zero.” This declaration arose in response to a $716 million repayment claim by Chinese banks, tied to personal guarantees for loans to Reliance Communications (RCom). Stating that he owned “nothing meaningful” and that family members funded his living expenses, Ambani’s claim failed to convince the court, which ordered asset disclosures and payment—laying bare his personal financial distress.
The Black Money Act Notice:
In 2022, Ambani faced further legal challenges when India’s Income Tax Department charged him under the Black Money Act for allegedly concealing ₹814 crore in Swiss bank accounts. The charges accused him of “wilful” tax evasion. Ambani challenged the purported retrospective application of the Act, and the Bombay High Court granted an interim stay, raising critical questions about the fairness of retroactive tax laws.
Supreme Court Contempt and Mukesh Ambani’s Bailout:
In 2019, the Supreme Court of India held Anil Ambani in contempt for failing to pay ₹550 crore owed to Ericsson. Facing imminent imprisonment, the dramatic intervention of his elder brother Mukesh Ambani, who paid the outstanding sum, not only rescued Anil but also underscored a complex mix of familial rivalry and support. What prompted Mukesh to step in at such a crucial moment?
The ADAG Group’s Corporate Collapse: Company by Company
Reliance Communications (RCom)
Once a leading force in India’s telecom sector, RCom defaulted on payments and entered insolvency in 2018, saddled with ₹35,600 crore in debt. A ₹23,000 crore resolution plan was approved, but regulatory roadblocks and disputes over spectrum usage have delayed closure. Notably, subsidiary RCIL saw a for its lenders a meagre ₹456 crore recovery against ₹41,397 crore in admitted claims. Did the telecom upheaval post-Jio’s entry seal RCom’s fate?
Reliance Capital
The Reserve Bank of India took over Reliance Capital in 2021 after defaults and governance failures emerged. With debts exceeding ₹40,000 crore, a ₹9,650 crore bid by IndusInd International Holdings Ltd (IIHL), of the London-based Hinduja Group, was finally approved by the NCLT in 2024. The new owners are now focusing on insurance and selling non-core assets. Could stronger governance have averted this decline?
Reliance Infrastructure
Reliance Infrastructure avoided insolvency by aggressively paring debt—slashing it from ₹3,831 crore to ₹475 crore by March 2025 through settlements and asset sales. In a remarkable turnaround, the company posted a ₹4,938 crore profit in FY25 and raised ₹300 crore via preferential shares. Does this represent the blueprint for corporate recovery?
Reliance Power
Through strategic asset sales—including wind and hydro projects—Reliance Power wiped out all standalone debt by June 2024. With 5,900 MW operational, improved debt-equity ratios, and renewed market engagement, Reliance Power appears rejuvenated. Will this revival be sustained?
Reliance Naval and Engineering
Once touted as a shipbuilding crown jewel, Reliance Naval and Engineering was acquired by Swan Energy after insolvency proceedings. Creditors recovered ₹2,040 crore out of ₹11,800 crore in claims. Swan is now investing in modernising the shipyard. Could this business have been salvaged under the ADAG umbrella?
An Integrated Picture: Lessons and Legacy
Debt resolution outcomes across ADAG companies varied dramatically:
Reliance Communications: Approximately 70% recovery of secured claims—₹23,000 crore resolved out of ₹33,000 crore.
Reliance Capital: About 24% recovery—₹9,650 crore against ₹40,000+ crore.
Reliance Naval: A modest 16% recovery—₹2,108 crore from ₹12,884 crore.
Reliance Communications Infrastructure: A mere 1.1%—₹456 crore from ₹41,397 crore.
At its peak, ADAG’s debt soared to nearly ₹94,000 crore in 2019. A combination of insolvency processes, settlements, and asset sales has since brought this figure down significantly. Today, Reliance Infrastructure and Reliance Power are debt-free on a standalone basis. However, the overall scale and influence of the group have been deeply diminished.
Personal and Corporate Lessons
Several lessons emerge from this saga:
Debt Management: Excessive leverage without corresponding returns proved ruinous.
Sectoral Disruption: Reliance Jio’s entry and regulatory upheavals decimated RCom and impacted the group.
Personal Guarantees: Anil’s decision to personally guarantee loans exposed him to severe personal liability.
Regulatory Compliance: Protracted Black Money Act litigation and SEBI restrictions forced him out of corporate directorships.
Family Dynamics: Mukesh Ambani’s pivotal role in the Ericsson episode showcased the enduring importance of family amidst corporate turmoil.
Was this a case of vision clouded by ambition, or merely poor timing amidst shifting market landscapes?
Anil Ambani’s Net Worth Today
As of 2025, Anil Ambani’s net worth is estimated at $530 million (around ₹4,500 crore)—a dramatic fall from the $42 billion pinnacle of 2008. How much of this decline was avoidable? How does it affect the London litigation? There are no easy answers.
End of the Beginning
Anil Ambani’s financial fall—from global billionaire to pleading near-insolvency in court—reflects the spectacular collapse of the ADAG Group’s empire. While a few businesses have been stabilised or restructured, the once-mighty fleet of companies has largely been broken up or scaled down. This tale serves as a stark cautionary lesson for corporate India—underscoring the perils of unchecked ambition, excessive debt, and the hazards of personal guarantees.
As of 2025, with Anil Ambani’s personal fortune reduced to just over 1% of its peak, the decline ranks among the most dramatic episodes in Indian business history. Is there a second act in the making—or has the curtain already fallen?