Anil Ambani's Reliance Comms Sees Widening Losses as ED Scrutiny Intensifies!

Author

Abhay Singh | Whalesbook News Team

Detailed Coverage:

Reliance Communications, part of the Reliance Anil Dhirubhai Ambani Group, has posted a consolidated net loss of Rs 2,701 crore for the second quarter of the fiscal year 2026 (Q2FY26). This marks an increase in losses compared to the Rs 2,282 crore net loss reported in the same quarter of the previous fiscal year (Q2FY25) and the Rs 2,558 crore loss in the preceding quarter (Q1FY26). The company's revenue for the quarter was reported at a mere Rs 87 crore.

It is important to note that Reliance Communications has been under the corporate insolvency resolution process since June 28, 2019. Its operations, business, and assets are currently managed by Anish Niranjan Nanavaty, who serves as the Resolution Professional appointed by the National Company Law Tribunal, Mumbai Bench. All powers previously held by the board of directors are now vested in him.

Further complicating matters, the Enforcement Directorate (ED) has summoned Anil Ambani, the chairman of the Reliance Anil Dhirubhai Ambani Group, concerning an inquiry under the Foreign Exchange Management Act (FEMA). In a separate action, the ED has also temporarily attached assets valued at over Rs 3,000 crore.

Impact This news highlights the continued financial distress of Reliance Communications and the ongoing regulatory scrutiny on its promoter, Anil Ambani. While the company is in insolvency and its stock performance is heavily restricted, these developments can affect the broader sentiment around the Reliance Anil Dhirubhai Ambani Group and signal potential further legal and financial challenges. The ED actions, even if related to FEMA, can create uncertainty. Rating: 4/10.

**Difficult Terms Explained:** Foreign Exchange Management Act (FEMA): A law enacted in India to facilitate external trade and payments, and to promote the orderly development and maintenance of the foreign exchange market in India. Corporate Insolvency Resolution Process (CIRP): A process under the Insolvency and Bankruptcy Code, 2016, for the resolution of corporate debtors in a time-bound manner. Resolution Professional (RP): An individual appointed by the National Company Law Tribunal (NCLT) to manage the affairs of a corporate debtor during the insolvency resolution process.