A UK court on Friday directed Reliance Group chairman Anil Ambani to pay nearly $717 million (around Rs 5,446 crore) within 21 days to three Chinese banks seeking the recovery of funds owed to them as part of a loan agreement.
This Friday, through remote hearing because of the Covid-19 lockdown limitations, Justice Nigel at the Commercial Division of the High Court in London ordered that Anil Ambani is required to honour the guarantee given, “It is declared that the guarantee is binding on the defendant (Ambani).”
In February 2012, Reliance Com received a loan of over $700 million from three Chinese Banks, which Anil Ambani provided a personal guarantee. The company now in liquidation processes defaulted on the loan, which the banks have claimed it 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 order reads, “It is stated that under clause 3.2 of the guarantee, the defendant is liable in respect of any payment made by RCom to the lenders towards payment of the loan which is repaid, reversed or refunded as a result of the RCom insolvency action.”
Anil Ambani’s office, though, has consistently rejected “having authorized anyone to execute any guarantee on his behalf.” They are exploring more legal options.
In an earlier hearing, the court had denied entertaining Ambani’s defence that his net worth now is zero and also that he will get no support from his extended family.