They say it's better to have loved and lost than never to have loved at all, but it still doesn't seem like much fun to be a "former billionaire," especially if your claim to that title didn't involve voluntarily giving your riches away. It becomes even less fun when, like former billionaire Anil Ambani, you're also facing a stint in prison, which he avoided thanks to an $80 million payment from his brother Mukesh Ambani (current billionaire and richest person in Asia).
Anil was on the hook for 5.5 billion rupees, or about $80 million US, in debt to a company called Ericsson AB for services rendered. In February, he saw his guarantee to pay the debt backfire when the top court in India demanded he do so or go to prison, forcing him to turn to his older brother and sister-in-law to clear off the debt.
The payment is the latest development in the long Ambani family saga, which for many years has involved a feud between the two brothers over the massive business empire they inherited from their father. Anil's personal fortune has seen one of the largest and fastest reversals in history, as older brother Mukesh's fortune grew almost proportionately. He was reportedly worth some $31 billion back in 2008, while now he has "only" about $300 million to his name.
That puts Anil Ambani in company with figures like Masayoshi Son of Japan, who is reported to have lost some $70 billion in the dot com bubble burst of the early 2000s, and Eike Batista of Brazil, who in the last ten years has seen his fortune dwindle from $30 billion to more than a billion dollars in the red in 2015. That made Batista one of the few "negative billionaires" to ever accumulate more than ten figures in debt.
Table of Contents
Biography
Anil Ambani is an Indian businessman who was once among the richest individuals in the world. As the younger brother of Mukesh Ambani, he inherited a substantial business empire from their father, Dhirubhai Ambani. Anil's ventures primarily included telecommunications, power, and infrastructure.
| Personal Details | Information |
|---|---|
| Name | Anil Ambani |
| Date of Birth | June 4, 1959 |
| Place of Birth | Mumbai, India |
| Education | University of Pennsylvania (Wharton School) |
| Net Worth (2008) | $31 Billion |
| Current Net Worth | Approximately $300 Million |
Financial Reversal
Anil Ambani's financial journey is a stark reminder of how quickly fortunes can change. Once valued at an impressive $31 billion, Anil's wealth has plummeted dramatically over the years. This rapid decline serves as a cautionary tale about the unpredictable nature of business and investment.
The tipping point for Anil came when he found himself in debt to Ericsson AB, leading to a court ruling that demanded repayment or imprisonment. The intervention of his brother Mukesh, through an $80 million payment, highlights the complexities of family dynamics intertwined with business dealings.
Family Feud
The Ambani family saga is not just about wealth; it is also a tale of rivalry and disputes. Anil and Mukesh Ambani's relationship has been strained over the years, particularly concerning the division of their father's business empire. This ongoing feud has not only affected their personal lives but also the business landscape in India.
Understanding this family rivalry provides insight into the challenges faced by wealthy families and the impact of personal relationships on business decisions. The Ambani brothers' story is emblematic of how wealth can complicate familial bonds.
Lessons Learned
The saga of Anil Ambani offers valuable lessons for anyone navigating the world of business and finance. Key takeaways include the importance of financial prudence, the risks associated with high-stakes investments, and the need for transparent family communication in business matters.
Ultimately, the Ambani story serves as a reminder that fortunes can be fleeting and that maintaining strong personal relationships is crucial, especially when business interests are involved.
