On the business side of the news spectrum, on July 30, Yes Bank has reportedly taken over the headquarter of Anil Ambani’s group in Santacruz, Mumbai, for failure to repay dues worth ₹2,892 crores.
The bank has seized the Reliance Center, in connection with the Yes Bank loan default. The seizures include Anil Ambani's 21,000-square-foot office in Santa Cruz and two floors in Nagin Mahal in South Mumbai. All of the major companies in Anil Dhirubhai Ambani Group (ADAG) were conducting its operations out of the Santacruz office which was called the ‘Reliance Centre’
Anil Ambani's name was in the spotlight among the big industrialists. However, at the moment, Anil Ambani's name is synonymous with the idea of a debt-ridden industrialist. In the last few years, the fortunes of the group have gone south with the companies meeting various fates, including bankruptcies and stake sales.
According to the notice by Yes Bank, in 2019, the Reliance Group was looking to lease out the headquarters; measuring 21,432 square metres, in order to raise funds and pay off debt. With the Yes Bank being in trouble for a while now, it should be noted that the exposure to the Reliance Group firms is considered to be one of the many reasons for the exorbitant amount of debt piled up by the bank. Due to the high amount of non-performing assets, the lender had to be bailed out by a State Bank of India-led consortium of lenders for ₹10,000 crores.
Anil Ambani was considered to be the sixth richest person back in 2008. However, huge losses in the telecom, power and entertainment sectors have pushed up the burden of debt on him.
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