An UK court on Friday ordered Reliance Group Chairman Anil Ambani to pay nearly $717 million (around Rs 5,446 crore) within 21 days to three Chinese banks who have been trying to recover the funds owed to them as part of a loan agreement.
In February 2012, Reliance Com took a loan of over $700 million from three Chinese Banks which Anil Ambani provided personal guarantee to. The company now in insolvency proceedings, defaulted on the loan which the banks have sued it for to be recovered with interest. The three banks in question are Industrial and Commercial Bank of China Ltd Mumbai Branch, China Development Bank and Exim Bank of China.
The Chinese banks “made their claim based on a mere guarantee that was never signed by Mr. Ambani and he has consistently denied having authorised anyone to execute any guarantee on his behalf,” the spokesman said. “The amount ordered to be paid based on an alleged guarantee, will in any case reduce substantially and serves as no concrete evidence upon the imminent resolution of” Reliance Communication’s debt.
According to some sources, a spokesman for Ambani said that other Reliance group operations will not be affected by the ruling. Reliance Communications filed for bankruptcy last year.
“I do not hold any meaningful assets which can be liquidated for the purposes of these proceedings,” Anil Ambani said in February.