The UK court on Friday has ordered the Reliance Group Chairman Anil Ambani to pay $717 million to three Chinese banks within 21 days. The three bank includes Exim Bank Of China, Commercial Bank Of China Ltd Mumbai Branch, China Development Bank.
The business tycoon offered himself as a personal guarantee on the bank’s loan to his Reliance Communication Ltd in 2012 said Judge Nigel. The Reliance Communication has filled for bankruptcy last year.
While Anil Spokesperson said, ” The Chinese banks “made their claim based on an alleged guarantee that was never signed by Mr. Ambani and he has consistently denied having authorized 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 upon the imminent resolution of” Reliance Communication’s debt.
The business tycoon has fully gone in debt. He hassaid earlier that now he has 0 net worth. In 2019, his elder brother Mukesh Ambani came in rescue of him and paid off an overdue liability towards a contractor, Anil Ambani has been on an asset sell spree to pay off the 1 lakh Crore debt.
According to Mr Ambani the Chinese Banks are making false claim, he has done nothing more than a non binding “Comfort Letter” when he signed the deal.
In 2012, Anil Net worth dropped below $100 million from $7 Billion. Once, one of the richest people in the world, has now been left with nothing. Mukesh Ambani was once ranked among 5 wealthiest people in the world by Forbes but the decline that began since then and has not yet stopped.
While Mukesh Ambani continues to attract investors in these difficult times, Anil Ambani has lost it. In an earlier hearing, the court refused to hear the defence from Anil Ambani and that this time there will be no financial support from his extended family.