Anil Ambani Says His Net Worth Is Zero
Reliance Group Chairman Anil Ambani was asked to pay USD 100 million by a UK court. He was given six-week time to make the payment. The order was passed for three Chinese banks that lent USD 680 million to Anil Ambani in loan.
UK court order for Ambani
Judge Waksman read out the order for Industrial and Commercial Bank of China Ltd Mumbai Branch, China Development Bank and Exim Bank of China. The banks welcomed the order saying that it was a straightforward debt claim to recover outstand loans to RCom in good faith. They said that Anil Ambani had given a personal guarantee but he refused to honor that guarantee.
Anil Ambani denied guarantee
Ambani, 60, denied giving any such guarantee to Chinese banks that were forced to take the legal action. Also, he argued that his net worth was nearly zero and that his family won’t help in repaying the debt. But the court refused to accept his claim.
The judge said that Ambani failed to satisfy him with his excuses. But the Reliance Group indicated that the company would appeal against the ruling. It said that Ambani was reviewing the court order and would seek legal remedies according to the order.
The court dismissed Ambani’s request
The court asked whether Anil Ambani had filed bankruptcy in India. In response, his counsels said no. But they made a reference to Insolvency and Bankruptcy Code (IBC) that had just came into play. The court also made numerous references to instances when Ambani family stepped out to bail Anil Ambani and his family out.