Mukesh Ambani and Anil Ambani suffered Rs 280000000000 setback in less than a year due…., no connection with stock markets
GH News February 27, 2025 12:06 PM
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The Ambani brothers Mukesh Ambani and Anil Ambani have recently faced significant financial setbacks due to legal disputes. Together their business groups have been hit by losses totaling around Rs 28000 crore within the last year.
RIL VS ONGC: A Rs 20000 Crore Blow
Mukesh Ambani-led Reliance Industries Limited (RIL) suffered a major legal defeat in February 2025 when the Delhi High Court ruled against the company in a long-standing gas dispute with Oil and Natural Gas Corporation (ONGC).
The Dispute: ONGC accused RIL of unlawfully extracting natural gas from its adjacent fields in the Krishna-Godavari (KG) basin between 2009 and 2013 causing substantial financial losses to them.
In May 2023 a single-judge bench had ruled in favor of RIL upholding an arbitral award from 2018. However a division bench of the Delhi High Court overturned the earlier ruling citing patent illegality in the arbitral award and declaring it bad in law under Section 37 of the Arbitration and Conciliation Act.
Financial Impact: RIL was ordered to pay ONGC a sum of Rs 20000- Rs 25000 crore including interest. The central government also accused RIL and its foreign partners of unjust enrichment amounting to $1.729 billion. RIL plans to appeal the decision in the Supreme Court as stated in its communication to shareholders.
Reliance Infra Unit vs DMRC: Rs 8000 Crore Hit
Anil Ambani’s Reliance Infrastructure also faced a legal setback in 2024 concerning its subsidiary Delhi Airport Metro Express. The dispute involved an arbitration award of Rs 8000 crore in favor of the Reliance Infrastructure subsidiary over a disagreement with the Delhi Metro Rail Corporation (DMRC).
In April 2024 the Supreme Court set aside the arbitration award bringing relief to DMRC which had already paid Rs 3300 crore to Reliance Infrastructure. This ruling resulted in a direct loss of Rs 8000 crore for Anil Ambani’s group.
These developments highlight the financial burden legal disputes have imposed on both Mukesh Ambani and Anil Ambani. While the Rs 28000 crore losses are massive it’s important to note that the two brothers operate separate businesses and have no direct connection in their ventures.