The company owes Rs 40,413 crores including both long-term and short-term liabilities (Image:Instagram/tinaambaniofficial)

Indian business mogul Anil Ambani’s Reliance Communication (RCom) is said to be struggling with massive debt, according to reports on Saturday. The company owes Rs 40,413 crores including both long-term and short-term liabilities as of September 30. However, this amount doesn’t include additional interest payments. RCom owes Rs 27,867 crore in accrued interest to banks and financial institutions and it also has a debt of Rs 3,151 crore in interest on Non-Convertible Debentures (NCDs).

As per the reports, RCom is currently undergoing corporate insolvency resolution. This process follows the Insolvency and Bankruptcy Code of 2016 and the company’s debts are said to be settled according to this code.

Anil Ambani‘s RCom was once a leading telecom player, but after Mukesh Ambani launched Reliance Jio, RCom struggled to compete with the platform and the company slipped into financial distress. After Anil and Mukesh Ambani parted ways, Anil Ambani took control of power, telecommunications, and financial services. Mukesh Ambani handled oil and petrochemicals, later, Anil Ambani expanded into various sectors but faced various financial challenges.

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In 2019, the Supreme Court sent notice and warned Anil Ambani of jail time for failing to pay Rs 550 crore to Ericsson AB and the court gave Anil Ambani a month’s time to arrange the funds. Later, Mukesh Ambani intervened by paying the necessary funds to the company. Anil Ambani then entered defence manufacturing and entertainment but faced more hardships and didn’t see success in that as well. He failed to cope with the remittance of several payments and confronted whopping financial struggles.

In August, SEBI, the regulatory body for securities and commodity markets in India banned Anil Ambani, and 24 other entities, including former officials of Reliance Home Finance Ltd (RHFL) from the securities market for 5 years for diversion of funds. SEBI has also imposed a fine of Rs 25 cr on Anil Ambani, the younger brother of Mukesh Ambani and the chairman of Reliance Industries Limited.

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