For Anil Ambani, the story of a comeback has always seemed close yet painfully out of reach. The latest is that the Bombay High Court on Friday dismissed his petition challenging the State Bank of India’s (SBI) decision to classify his and Reliance Communications’ loan accounts as fraudulent. A few days ago, the Enforcement Directorate (ED) conducted raids on six premises of the Anil Ambani-linked Reliance Infrastructure (RInfra) in Indore and Mumbai, as part of its probe into alleged illegal remittances abroad, and loan diversion, amounting to over ₹17,000 crore.

Not long ago, the younger son of Dhirubhai Ambani appeared to be scripting a turnaround. RInfra and Reliance Power (RPower), the last remaining companies of his once-sprawling empire, had begun reducing debt, secured a favourable Supreme Court order to recover ₹28,000 crore in unpaid power dues in Delhi, and rewarded investors as their shares turned multi-baggers. 

However, just when hope returned to his camp, a string of fresh troubles began to unfold. In August, the Central Bureau of Investigation (CBI) raided premises linked to Ambani in connection with an alleged bank fraud that caused a loss of ₹2,900 crore to SBI. Soon after, the ED conducted raids on six RInfra locations, alleging Foreign Exchange Management Act (FEMA) violations. 

In response to reports of the ED raid, RInfra said that it was in relation to a matter dating back 15 years. In 2010, the company had awarded an EPC contract for the construction of the Jaipur–Ringus toll highway. “This was a domestic contract with no foreign exchange involved,” the company said.

“The work was completed, and the company has no continuing connection or relationship with the said contractor. The toll road is with NHAI for the last four years,” it added.  

The younger Ambani’s decline is rooted in years of missteps. From risky bets on telecom to costly delays in defence and infrastructure, his missteps eroded investor trust and forced several group companies into bankruptcy. His Santacruz corporate headquarters in Mumbai was taken over by YES Bank after defaults, and he was compelled to resign from the boards of RPower and RInfra following a Sebi order barring him from associating with listed firms. Earlier, in 2023, Sebi had accused him and his associates of siphoning funds from Reliance Home Finance.

Yet Ambani, with the support of his sons Jai Anmol and Jai Anshul, tried to steady the ship. His efforts briefly paid off when the courts intervened in his favour. In June, IDBI Trusteeship Services, a trusteeship company backed by LIC and GIC, filed a plea before the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against RInfra over a default of ₹88.68 crore. The NCLT admitted the case, but Ambani fought back. His lawyers argued that the principal had already been paid, though IDBI adjusted the amount against interest dues of over ₹90 crore. The company cleared the remaining dues shortly after, and the National Company Law Appellate Tribunal (NCLAT) suspended the insolvency proceedings.

In August, RInfra received a boost when the Supreme Court allowed its subsidiaries, BSES Yamuna Power and BSES Rajdhani Power, to recover about ₹28,483 crore in regulatory assets over the next four years. 

These orders were a crucial lifeline at a time the group was preparing to expand into renewable energy and defence. RPower has partnered with Bhutan’s Druk Holding & Investments to develop a 500 MW solar power plant and the Chamkharchhu-1 hydro project. Its subsidiary, Reliance NU Suntech, has won a 930 MW solar-plus-storage contract from the Solar Energy Corporation of India, the largest such project in the country. RInfra, meanwhile, has set itself a target of exporting ₹3,000 crore worth of large calibre ammunition and aggregates by FY27, with half that expected this year. All these seemed a conscious move to focus on areas aligned with national priorities, where long-term contracts could offer stability and growth.

But Ambani’s challenges were not confined to boardrooms and balance sheets. His split with elder brother Mukesh had left him isolated from the country’s most powerful business ecosystem. Over the years, he failed to cultivate lasting alliances with other industry heavyweights. On the business front, he was competing with giants like the Adani Group and L&T in defence, power, and infrastructure. 

In the past, the spectre of bankruptcy haunted the group. Reliance Communications, Reliance Naval and Engineering, and Reliance Capital were once positioned as growth engines, but they had all collapsed under debt. Reliance Capital was acquired by the Hinduja Group through insolvency proceedings, Reliance Naval was taken over by Swan Energy, and the Reliance Communications case remains unresolved. 

It is a sharp contrast to 2008, when Ambani, fresh from the record-breaking ₹11,563 crore Reliance Power IPO, was the world’s sixth-richest man with a fortune of ₹2.12 lakh crore. His group’s combined market capitalisation then touched ₹4 lakh crore. By 2019, his wealth had fallen below ₹1,000 crore.

Even so, the revival story is not entirely extinguished. RPower and RInfra continue to operate meaningful assets, including nearly 5,300 MW of power projects, portions of the Mumbai Metro, Delhi’s power distribution business, and road projects. Investor sentiment, though volatile, has shown bursts of optimism.

Over the past five years, RInfra’s stock has surged more than 1,000%, while Reliance Power has jumped over 1,500%. Together, they now command a market capitalisation of nearly ₹28,000 crore. Yet volatility is ever-present: RInfra shares have fallen 38% in the past three months. RPower has lost 34% over the same period.

For Anil Ambani, the path ahead remains precariously balanced between promise and peril. His companies are making real moves in renewables and defence, yet regulatory probes, debt overhang, and a damaged reputation continue to shadow him. The question of whether his comeback hasn’t happened because of strong rivals or by his own chequered history does not lend itself to easy answers. For now, Anil Ambani remains caught between redemption and failure, his fortunes swinging with every court order, regulatory raid, and market mood.