Reliance Capital: SEBI has imposed a 5-year ban on Anil Ambani, brother of the country’s richest man Mukesh Ambani. Along with this, a fine of Rs 25 crore has also been imposed on him. This action of SEBI is going to further increase the crisis for Anil Ambani and his companies. Along with this, Reliance Capital, which was once the shining star of Anil Dhirubhai Ambani Group (ADAG), has once again come into the news. Today we are going to tell you the story of this company falling from the heights to the ground.
Reliance Home Finance’s money was manipulated
According to SEBI, Anil Ambani carried out the fraud with the help of people posted in managerial positions of Reliance Home Finance. These people together sent the money of Reliance Home Finance to other companies. Reliance Home Finance has also been banned from the securities market for 6 months. Also, a fine of Rs 6 lakh has been imposed on the company. SEBI has also taken action against many companies including Amit Bapna, Ravindra Sudhalkar and Pinkesh R Shah.
Reliance Capital had become a company worth Rs 70 thousand crores
Amidst this action, discussions have started about Reliance Capital. In 2002, Anil Ambani got financial services, power and telecom business after the division of Reliance Industries. By 2007, Reliance Capital had become bigger than HDFC by achieving a market cap of Rs 70 thousand crores. It was included in the top 3 financial companies of the country. Despite the global economic recession in 2008, the company continued to grow rapidly.
Steps were also taken in infra, defense and media sectors
After this, Anil Ambani also entered the infrastructure, defense and media sectors. After this, he started facing financial problems. Reliance Communications faced a big problem in moving from CDMA to GSM technology. In 2018, rating agencies warned about the problems of Reliance Capital. After this, the situation became more serious due to the collapse of IL&FS and DHFL. Exactly one year later, in 2019, Anil Ambani started the process of declaring himself bankrupt in a UK court.
RBI started the bankruptcy process in 2021
In the year 2021, with the default of Reliance Capital’s subsidiaries Reliance Home Finance and Reliance Commercial Finance, the company crashed to the ground. In November 2021, the Reserve Bank of India (RBI) took charge and dissolved the board of Reliance Capital and started the bankruptcy process. With this, this company, which was a shining star of the financial sector, sank.
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