Chinese banks to pursue enforcement right on Anil Ambnani’s global assets as repayment of $716 million loan
Anil Ambani has been chased by three Chinese banks to whom, according a UK court, he owed over $716 million (Rs 5,276 crore), plus significant legal costs including interest of Rs 7.04 crore. After his cross-examination by the commercial court on 29 June, his total repayment amount increased to $717.6 million.
After Ambani’s recent cross-examination, the English court on Friday permitted the banks to pursue their right against the former Reliance Communications Chairman’s assets across the global. After the court‘s hearing, the three banks, the Industrial and Commercial Bank of China, Export-Import Bank of China and China Development Bank issued a statement stating. “The banks will use the information from the cross-examination to pursue all available legal avenues to protect their rights and recover the outstanding loans owed to them.”
The banks will use the information from the cross-examination to pursue all available legal avenues to protect their rights and recover the outstanding loans owed to them
Bankim Thanki QC, representing the banks, told the UK high court on Friday that Ambani was “fighting tooth and nail to prevent having to pay us a penny.”
The detailed report carried out by Times Of India (TOI), mentioned that the banks were not going to pursue enforcement action against Ambani’s assets in India due to the State Bank of India’s insolvency proceedings. The insolvency action against Ambani has currently been stayed by the Delhi High Court. The Chinese banks said that they would initiate the enforcement action against Reliance chiarman’s assets outside of India, which he disclosed in an affidavit.
In response to the UK commercial court’s hearing, Ambani said: “Mr. Anil Ambani has always been a simple man of simple tastes, contrary to exaggerated perceptions of his flamboyance and lavish lifestyle. He is devoted to his family and company; an avid marathon runner; and deeply spiritual. He is also a lifelong vegetarian, teetotaller and non-smoker who would much rather watch a movie at home with his kids than go out on the town. Reports that suggest otherwise are completely misleading.”
The hearing was with regarding to settlement of loan dispute between the two sides, as three Chinese banks gave loan of $925 million (Rs 6,817 crore)to Reliance Communications (RCom) in 2012. It was said that the company initially paid the loan instalments but later on started defaulting. The Chinese banks added that Ambani gave them his personal guarantee for the loan repayment. Though he denied that the guarantee was binding on him. However, the UK high court in its ruling on 22 May 2020 said the banks had the right to claim the repayment as the personal guarantee was binding on Ambani “far and beyond the standard of the balance of probabilities”.