From $42 Billion to $0

We all know the classic rags-to-riches story. But how often do we hear about a fall from great riches to rags? Anil Ambani, an Indian businessman, is a jaw-dropping example. He soared to a staggering $42 billion, only to plummet to zero. Picture this: sibling rivalries that are more expensive than you can imagine, jail bailouts, and a mind-boggling $7 billion debt.

So, who is Anil Ambani? Let’s rewind to mid-20th century India. Anil was born on June 4, 1959, in Mumbai. He was the youngest son of Dhirubhai Ambani, a man who built a powerful empire. Dhirubhai started his life as a clerk, only to rise and create Reliance Commercial Corporation. The family began in a cramped apartment, but soon moved into a lavish six-story home.

Dhirubhai taught Anil the value of hard work through grueling family outings. But as we’ll see, those lessons didn’t pan out as expected. By the 1980s, Reliance had expanded dramatically, transforming into a $122 million giant. Both brothers joined the family business in their mid-20s. Mukesh, the elder, was serious and focused. Anil, however, loved the limelight, mingling with Bollywood stars. This love would lead to trouble.

In 1991, Anil married actress Tina Munim, despite family hesitations. But the real storm struck in 2002. Dhirubhai died unexpectedly, leaving a legacy of $15 billion in Reliance. The brothers' relationship began to crack. Mukesh took control as chairman, while Anil became vice-chairman. Disagreements spiraled, leading to a bitter feud. Even the Indian finance minister intervened, but to no avail.

Eventually, their mother organized a split of Reliance. Mukesh took the profitable sectors; Anil went for the riskier ones. Anil’s venture into telecoms with Reliance Communications took off, but soon turned into chaos. After taking massive loans, he needed a miracle merger with South Africa’s MTN. That hope crumbled because of a legal agreement favoring Mukesh.

In 2011, Anil’s executives faced arrest over scandalous allegations. Stuck in debt, he had nowhere to turn but to borrow—and even more debt piled up. Then came a disastrous gas deal that cost him dearly. The brothers' rivalry continued to escalate. Mukesh launched Jio, skyrocketing in the telecom market. Meanwhile, Anil's company lost 98% of its value.

Desperate to keep afloat, Anil was hit with lawsuits from Ericsson over unpaid debts. Time was running out. In a shocking twist, Mukesh bailed him out to save his name, but it was the ultimate humiliation for Anil. By 2019, Reliance Communications filed for bankruptcy. Creditors were closing in from all sides, including Chinese banks demanding money.

In February 2020, Anil claimed he was worth zero. The world gasped. How did someone once worth $42 billion fall so far? Yet, despite declaring bankruptcy, Anil still flaunted luxury cars, a private jet, and a yacht. How could this be? Nonliquid assets had masked his true financial state.

As of 2021, Mukesh was thriving, worth $217 billion while Anil was left scrambling. Anil continues to fight for his fortune, but the odds seem stacked against him. The tale of a billionaire losing it all is shocking. If only he had worked with Mukesh instead of against him. In the end, whether we feel sympathy for a billionaire facing downfall is complicated.

What do you think? It takes a lot of effort to climb up thee ladder however its often one catastrophic mistake to fall all the way down. What is required to maintain a certain level of success is so much that failure to abide by those principles can have untold dire consequences. Share your thoughts in the comments below!