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ARCs earning from SR redemption up 15.8% in FY25 on better recovery
The redemption of SRs, broadly representing recovery, improved substantially as the economy picked up and amount locked up in stressed sectors like power, infrastructure got resolved, according to the Association of ARCs in India.
ARCs had redeemed SRs worth ₹37,364 crore in FY24 and ₹27,356 crore in FY23. SRs are financial instruments issued to qualified buyers as consideration for purchasing distressed assets from banks or financial institutions.
While the redemption of receipts increased in FY25, the SRs issued for bad loans acquired by ARCs declined during the period. They issued SRs amounting ₹37,511 crore in FY25, down from ₹37,864 crore in FY24 and ₹41,406 crore in FY23.
With stable gross non-performing assets (NPAs) of the banking system below 3 per cent, fresh ARC business remained almost stagnant. The pace of issuance of security receipts issued for acquisition of NPAs remained muted. The redemption outpaced acquisition due to improved recovery and collections. For the next year too, the situation is likely to continue, said Hari Hara Mishra, CEO, Association of ARCs in India in a statement.
Also, with the redemption of SRs being higher than fresh SRs issued, the outstanding SRs declined to ₹1.34 trillion in FY25 from ₹1.39 trillion in FY24.
The asset sale & settlement contributed only 1/3rd of recovery, the remaining 2/3rd came through Insolvency and Bankruptcy Code (IBC), and in-house restructuring and other measures, the association said.
The total dues acquired by ARCs cumulatively rose to ₹16.14 trillion, including those from Stressed Asset Stabilisation Fund amounting to ₹4.22 trillion transferred to an ARC during FY25, it added. The total dues acquired were ₹10.2 trillion at the end of FY24 and ₹8.48 trillion in FY23.

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United News of India
16 hours ago
- United News of India
Anil Ambani not on boards of companies, says statement after ED raids 35 premises
Mumbai, July 24 (UNI) The Anil Ambani-led Reliance Power and Reliance Infrastructure issued a statement today that raids carried out by the Enforcement Directorate (ED) "have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the companies." "The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCom) or Reliance Home Finance Limited (RHFL), which are more than 10 years old," the statement mentioned. "It is clarified that Reliance Power is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL," the statement clarified. "RCOM has been undergoing the Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016 for over 6 years." RHFL has been fully resolved pursuant to the judgement of the Supreme Court. Similar allegations as those set out in the media reports are sub judice and pending before the Securities Appellate Tribunal (SAT), as per publicly available information," according to the statement. "Further, Anil Ambani is not on the Board of Reliance Power and Reliance Infrastructure. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of both the companies," the statement maintained. Earlier in the day, the ED raided more than 35 premises and 50 companies linked to the Anil Ambani-led Reliance Group to probe an alleged Rs 3,000-crore Yes Bank loan fraud, where Yes Bank officials allegedly received bribes. According to the ED, the raids and searches were conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), based on two FIRs registered by the Central Bureau of Investigation (CBI) after inputs shared by the including Securities & Exchange Board of India (SEBI), the National Housing Bank (NHB), Bank of Baroda and the National Financial Reporting Authority (NFRA). Preliminary ED investigations showed that loans worth around Rs 3,000 crore, sanctioned by Yes Bank between 2017 and 2019, were allegedly diverted to shell companies and other Anil Ambani group entities. The ED also found evidence suggesting possible bribery of Yes Bank officials, including its promoter Rana Talwar. The ED stated that senior business executives linked to the Anil Ambani group are also being searched as part of a wider investigation. The ED stated that it has gathered evidence of a planned scheme to divert public funds. The ED probe suggests that several entities, including banks, shareholders, investors, and public institutions, may have been misled or cheated in the process of diverting public funds. The ED action follows the State Bank of India's (SBI) recent declaration of Anil Ambani and his company Reliance Communications (RCom) as "fraud". On June 13, 2025, under guidelines issued by the Reserve Bank of India (RBI) about fraud risk management, and as per its internal policy, the SBI had flagged the company and its promoter. Recently, the Minister of State for Finance Pankaj Chaudhary had informed the Lok Sabha that SBI reported the matter to the RBI on June 24, 2025 and the SBI is preparing to file a formal complaint with the CBI. On July 1,the Resolution Professional for Reliance Communications (RCom) informed the Bombay Stock Exchange (BSE) about SBI's decision as part of its disclosure responsibilities. SBI's financial exposure to Reliance Communications includes a fund-based principal amount of Rs 2,227.64 crore along with interest and expenses due since August 26, 2016. The SBI also has a non-fund-based exposure through bank guarantees worth Rs 786.52 crore. The Anil Ambani-led RCom is already under a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. A resolution plan has been approved by the Committee of Creditors and filed with the National Company Law Tribunal (NCLT) in Mumbai on March 6, 2020. A final decision by the NCLT is still pending. In addition to the company insolvency proceedings, SBI has also started personal insolvency proceedings against Anil Ambani under the same law, and the case is being heard by the NCLT bench in Mumbai. UNI XC ARN SSP


India Today
2 days ago
- India Today
Court transfers Mehul Choksi's firm's winding-up case to tribunal for revival
The Bombay High Court on Tuesday allowed a consortium of banks led by the Punjab National Bank to transfer a pending winding-up petition against diamantaire Mehul Choksi's company Gili India Limited to the National Company Law Tribunal (NCLT).While issuing the order, the court noted that the revival of the company is required in the interest of the stakeholders."The facts of the case demand the revival of the company, in the better interest of the Company and the stakeholders," the court The court also observed that the move aligns with the objectives of the Insolvency and Bankruptcy Code (IBC) and could lead to the company's revival.A company named Anchal Collections Ltd had filed a petition for the winding-up of Gili India Limited in 2014 and in 2018, the winding-up order was passed by the High Court, following which an official liquidator was the bank moved the interim application under the provision to Section 434(1)(c) of the Companies Act, 2013, for the transfer of the Company Petition to banks had extended working capital facilities worth nearly Rs 400 crore to the now-defunct jewellery firm and alleged that Gili India Limited, part of the Gitanjali Group, committed large-scale fraud, which had been reported to the CBI and was the subject of proceedings before the Debts Recovery Tribunal and the Payal Upadhyay and Anant Upadhyay, appearing for PNB, argued that since they are secured creditors, transferring the case to NCLT would be more beneficial for claim recovery under the IBC framework. They also pointed out that no irreversible steps had been taken after the winding-up order was passed in September official liquidator did not oppose the Sharmila U Deshmukh accepted the plea, stating, 'The winding-up of the Company would only result in the civil death of the Company whereas the provisions of the IBC are beneficial [and] result in the revival of the Company.'The bench directed the court registry to transfer all related documents to the NCLT, Mumbai, expeditiously.- EndsMust Watch


Indian Express
2 days ago
- Indian Express
ED raids: Anil Ambani's fall and the flicker of a comeback
After the split between the Ambani brothers, Anil Ambani's journey took a dramatic and difficult turn. Once commanding a glittering business empire, he soon found himself caught in a storm of debt defaults, financial losses and insolvency proceedings. Companies that were once household names — Reliance Communications, Reliance Capital, Reliance Power, and Reliance Infrastructure — began to unravel under the weight of mounting liabilities and regulatory setbacks. Thursday's Enforcement Directorate raids at numerous locations and on a number of firms linked to Anil Ambani's Reliance Group comes as the latest setback to the business house at a time when it was looking to get back on its feet after years of moving from one crisis to another. Over the past two-three years, the Reliance Group looked to start on a revival journey, with a focus on sectors like clean energy, infrastructure, and defence. It remains to be seen whether the Reliance Group will be able to stay the course it had charted for itself, or be derailed yet again. By 2017–2018, many of these firms had either entered bankruptcy or faced severe distress. Reliance Communications – which had a market capitalisation of Rs 1.5 lakh crore at its peak in 2007 — ceased mobile operations in 2019 after filing for bankruptcy, burdened by an unmanageable debt of Rs 46,000 crore. Reliance Capital, a leading NBFC of its time, defaulted on over Rs 40,000 crore and eventually lost its insurance and asset management businesses — Nippon of Japan took over the asset management and life insurance businesses of the group, while the general insurance arm and Reliance Capital were acquired by the Hinduja-led IndusInd group through the resolution process. In June this year, the State Bank of India (SBI) officially labelled Reliance Communications' loan account as 'fraudulent,' alleging fund diversion that traces back to 2016. Reliance Naval, acquired by the Reliance Group in 2015, was tasked with building five offshore patrol vessels under a Rs 2,500 crore defence deal. After years of delays and financial setbacks, the Navy cancelled the project in 2020, citing failure to meet deadlines. With over Rs 7,000 crore in debt and no restructuring plan, the company entered bankruptcy in 2020. In December 2022, Swan Energy took over its assets through the insolvency process. As the financial empire crumbled, the group sought to restructure its remaining assets under India's Insolvency and Bankruptcy Code. Some businesses were wound up, others dissolved or sold off, while a few found breathing room to regroup. Anil Ambani himself quit from the boards of various group companies including Reliance Infrastructure and Reliance Power. In fact, none of the family members are on the boards of major group companies. Tina Ambani is on the board of Dassault Reliance Aerospace Ltd. In August 2024, the Securities and Exchange Board of India (SEBI) too imposed a five‑year ban on Anil Ambani and 24 other entities from participating in the securities market. He was also hit with a Rs 25 crore penalty (approximately $3 million) for orchestrating a fraudulent scheme to siphon off funds from Reliance Home Finance Ltd (RHFL) via unsafe general‑purpose working capital loans to entities linked to the promoters. Last month on June 13, State Bank of India classified Reliance Communications along with promoter director Anil D Ambani as 'fraud' and on Monday the Parliament was informed that it was in the process of lodging a complaint with the CBI. The entities were classified as fraud in accordance with the RBI's Master Directions on Fraud Risk Management and Bank's Board-approved Policy on Classification, Reporting & Management of Frauds, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha From 2022 onward, the Anil Ambani group began a cautious, if ambitious, attempt at revival– pivoting towards clean energy, infrastructure, and defence manufacturing. This new strategy placed sustainability and technology at its core, with a renewed focus on solar power and battery energy storage. The group's revival plan is led by power and infrastructure arms. Reliance Power has an operating portfolio of 5,305 MW, that includes 3960 MW Sasan Power Limited (world's largest integrated coal-based power plant). Following Reliance Power's achievement of zero debt, Rosa Power, which operates a 1,200 MW coal-based thermal power plant in UP, is now on track to become debt-free. The company aims to settle its remaining debt in the next quarter, completing the process before the end of the current financial year. It's now planning to invest over Rs 10,000 crore in a solar power plant and an integrated solar manufacturing facility in Andhra Pradesh. Reliance Power made a profit of Rs 2,947 crore in FY24 and Rs 44.79 crore in the June quarter of FY26. Reliance Infrastructure, once weighed down by debt, reported zero standalone net debt by FY 2025 and posted a net profit of Rs 216 crore in Q4 of FY25 as against a loss of Rs 3,202 crore in Q3 of FY25. India Ratings recently upgraded Reliance Infra's rating from D to B, pointing to the timely servicing of standalone debt obligations for three consecutive months ended 30 June 2025. However, it said Reliance Infra continues to face elevated group-level risk due to the financial distress in several subsidiaries. The company now operates through a diversified network of special purpose vehicles (SPVs) across critical growth sectors such as power, roads, metro rail, airports, and defence. During FY25 and 1QFY26, Reliance Infra made significant progress in resolving legacy financial obligations arising from corporate guarantees and other liabilities. Reliance Power stocks saw a 121 per cent rally from the 52-week low, signalling renewed investor interest. However, promoter holding in Reliance Infra remains modest at just 19.05 per cent, reflecting continued capital dilution and financial restructuring. Reliance Infra and Reliance Power — the two major listed entities — have a market capitalisation of Rs 14,262 crore and Rs 24,690 crore respectively now. At its peak in 2008 before various companies collapsed, the group had a market capitalisation of Rs 3.45 lakh crore. Reacting to the ED raids, Reliance Infra and Reliance Power said in similarly-worded statements that the ED's actions 'have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders', and that the companies have no business or financial linkage to Reliance Communications and Reliance Home Finance, which are purportedly at the centre of the ED's action. In the aerospace sector, the group had earlier formed Dassault Reliance Aerospace Ltd (DRAL) in 2017, a joint venture with France's Dassault Aviation under the offset obligations of the Rafale fighter jet deal. While DRAL did deliver aerostructure components—such as cockpit assemblies—for Falcon 2000 jets, its role remained modest, accounting for only a small part of the total offset value. Plans are now afoot to deepen the partnership between Dassault and the Reliance Group, with plans to manufacture the former's business jets in India. Dassault and Reliance Group announced last month that DRAL will be setting up a final assembly line (FAL) for manufacturing the Falcon 2000 jets at Nagpur. The first made-in-India Falcon 2000 jet is expected to be ready by 2028. This will be the first instance of Dassault manufacturing the popular business jet outside France. The made-in-India jets will cater to rising business jet demand in India and international markets, according to the partners. At Mihan, Nagpur, DRAL has a manufacturing facility for making various sections of Dassault's best-selling business executive jet–the Falcon 2000. Since delivering its first Falcon 2000 front section in 2019, DRAL has assembled over 100 major sub-sections for the Falcon 2000. While Dassault and the Reliance Group have not spelt out the capacity of the Falcon 2000 production facility at Nagpur, but sources in the know indicated that it could be up to 24 aircraft a year. This would be the first-ever instance of a foreign aircraft manufacturer setting up an FAL in India for fixed-wing civilian aircraft. Over time, however, Dassault's newer defence partnerships have increasingly leaned toward other Indian players like Tata, signalling a reduced reliance on the Anil Ambani group in this space. The group recently announced big plans in the ammunition segment also. In June 2025, Reliance Defence formed a strategic partnership with Diehl Defence of Germany to manufacture Vulcano 155 mm precision-guided artillery shells domestically. In May 2025, the group signed an agreement with Rheinmetall AG, another major German defence manufacturer to supply explosives and propellants for medium and large-calibre ammunition. Despite years of financial turbulence, the group has shown signs of resilience and reinvention. Though much of the original empire lies dismantled, a leaner, more focused Anil Ambani Group is trying to chart a comeback—anchored in energy, infrastructure, and defence, yet still shadowed by its legacy of debt and regulatory scrutiny. Sukalp Sharma is a Senior Assistant Editor with The Indian Express and writes on a host of subjects and sectors, notably energy and aviation. He has over 13 years of experience in journalism with a body of work spanning areas like politics, development, equity markets, corporates, trade, and economic policy. He considers himself an above-average photographer, which goes well with his love for travel. ... Read More