Anil Ambani faces legal blow as Supreme Court sets aside Rs 8,000 crore arbitral award

Anil Ambani, once hailed as one of the wealthiest individuals globally, faces another setback as the Supreme Court invalidated Rs 8,000 crore arbitral award granted in favour of Delhi Airport Metro Express Pvt Ltd (DAMEPL), marking a latest in a series of challenges that have plagued his business empire.

The arbitration pertained to a dispute arising from a concession agreement inked between DAMEPL, a subsidiary of Anil Ambani's Reliance Infrastructure, and Delhi Metro Rail Corporation back in 2008. In its ruling, the apex court directed DAMEPL to refund all payments previously made by the Delhi Metro Rail in line with the arbitral award, totalling Rs 3,300 crore.

In response to the court's decision, Reliance Infrastructure swiftly clarified in a stock exchange filing that the verdict did not impose any liability on the company. The statement stressed that the company had not received any funds from DMRC/DAMEPL pursuant to the arbitral award.

The setback comes amid a tumultuous period for Anil Ambani, who, despite inheriting a legacy from his father, the late Dhirubhai Ambani, faced numerous challenges across diverse business ventures.

Following the split of the Reliance empire between Anil and his elder brother Mukesh, Anil's enterprises ventured into sectors ranging from telecommunications to power generation and entertainment. However, challenges persisted, including legal disputes and financial strains.

Anil's foray into telecommunications faced fierce competition and financial hurdles, leading to Reliance Communications' insolvency proceedings. Similarly, his ventures in the entertainment and defence sectors failed to yield expected results, while Reliance Capital's bankruptcy filing in 2021 further compounded his woes.

Moreover, legal battles with creditors, including a high-profile case with Ericsson AB's Indian unit, underscored the financial pressures faced by Anil Ambani's businesses.

Furthermore, Reliance Infrastructure, which undertook infrastructure projects such as Mumbai's first metro line, grappled with financial difficulties, evidenced by missed bond payments and asset sales.

In light of these challenges, Anil Ambani's once-flourishing business empire now faces a critical juncture, necessitating strategic recalibration and decisive action to navigate through turbulent waters and restore investor confidence.

(With PTI inputs)