Winning Bizness Desk

Mumbai. Dhananjay Tiwari, CEO of Anil Ambani's debt-ridden company Reliance Capital, has resigned. The company did not disclose the reasons for his resignation, but said in a regulatory filing on Wednesday that Tiwari retired on March 15, 2022. This heavily indebted firm is going to be sold and many companies including Adani Finserve are looking to buy it.

Presently this company is in Corporate Resolution Process (CIRP) at Mumbai Branch of NCLT. The board of Reliance Capital was dissolved by the Reserve Bank on November 20, 2021. The company had defaulted in payments and its functioning was also questioned. The central bank had appointed Nageswara Rao Y, former executive director of Bank of Maharashtra, as the administrator of the company.

A debt of Rs 26,000 crore

14 major companies have shown interest in buying this company including Adani Finserve, KKR, Piramal Finance and Poonawalla Finance. The date for filing bids for Reliance Capital, which was March 11, has now been extended to March 25. Several companies of ADAG, including Reliance Communications and Reliance Naval & Engineering, failed to repay the loan, after which the banks dragged them to the bankruptcy court. Reliance Communications said in December that it has a debt of Rs 26,000 crore from Indian banks and financial institutions. Presently this company is going through insolvency proceedings. Indian banks, vendors and other creditors have claimed dues of Rs 86,000 crore on the company.

Anil was once country's third-largest richest man

Among Anil's big companies, Reliance Capital had a debt of Rs 20,380 crore and Reliance Home Finance Rs 13 thousand crore as of December 2020. Anil Ambani had a debt of $305 million as of February 2020 while his assets were only $82 million. The insolvency resolution includes Reliance Capital's Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance and Reliance Commercial Finance Subsidiaries. Anil Ambani, the younger brother of India and Asia's biggest rich Mukesh Ambani, was once the country's third-largest rich but today his net worth is zero.