Mukesh Ambani headed Reliance Ltd. saw a steady rise in its debt and the amount it owes to HDFC Ltd. and Axis Bank is at a significant height adding on to its financial indebtness.
As per Reliance Capital Ltd., the company’s outstanding debt amount stood at ₹20,379.71 crores by the last month of 2020. As of August 31, 2020 the amount was ₹19,805.7 crores (includes interest).
The total financial debt (involving both short term and long term debt, accrued interest) was calculated to be ₹20,379.71 crore as of December 31, 2020.
The company owes ₹523.98 crore to HDFC Ltd. and ₹100.63 crore to Axis Bank.
Thereby, summing up all the outstanding money borrowed from banks it leads to an amount of ₹700.76 crore, taking into consideration records uptill December 31,2020.
As per Reliance Home Finance, the outstanding debt stood at ₹13,000 crore. The sun total of financial indebtedness (including principal and interest) rose to ₹12,943 crore by the end of December 2020.
Recently, market regulator SEBI had penalised Reliance for ₹447 Crore plus interest to be paid within the following 45 days. The Company on the other hand had planned to dispute the order. Through a written and verbal submission before SEBI, Reliance stated its actions to be ‘hedging’, in an attempt to justify it’s scheme.