Mumbai, Feb 8: Anil Ambani, the brother of Asia’s richest man has pleaded poverty in his dispute with three Chinese banks seeking $680 million in defaulted loans.
“The value of my investments has collapsed,” Anil Ambani said, according to a court filing by the banks in a London lawsuit.
“The current value of my shareholdings is down to approximately $82.4m and my net worth is zero after taking into account my liabilities. In summary, I do not hold any meaningful assets which can be liquidated for the purposes of these proceedings.”
The lawsuit was filed by three state-controlled Chinese banks which argue that they provided a loan of $925 million to Ambani’s Reliance Communications Ltd. in 2012 with the condition that he personally guarantee the debt. The comments were disclosed on Friday as Ambani sought to avoid depositing hundreds of millions of dollars with the court ahead of a trial.
The embattled Indian tycoon says that while he agreed to give a non-binding “personal comfort letter,” he never gave a guarantee tied to his personal assets -- an “extraordinary potential personal liability.”
The 60-year-old is the brother of Mukesh Ambani, who’s worth $56.5 billion and is the wealthiest man in Asia. Anil, on the other hand, has seen his personal fortune dwindle over recent years, losing his billionaire status. His Reliance Communications filed for bankruptcy last year.
The banks asked Judge David Waksman to force Ambani to put up $656 million into the court’s account.
Representatives for Ambani’s Reliance Group said they couldn’t immediately comment. They said the group will issue a statement once the court issues the final order.
Ambani’s lawyer, Robert Howe, said the court shouldn’t order his client to make a payment he can’t make. The tycoon argues that an order requiring him to do so would hinder his ability to defend himself in the case, Howe said.
“There’s no evidence of some giant pot of gold that he can pull $1 million, let alone $10 million, let alone $100 million,” Howe said.
Bankim Thanki, an attorney representing Industrial & Commercial Bank of China Ltd., China Development Bank and the Export-Import Bank of China, said in a filing that Ambani’s statements are “plainly a yet further opportunistic attempt to evade his financial obligations to the lenders.”
Ambani was caught up in another legal wrangle last year when India’s Supreme Court threatened him with prison after Reliance Communications failed to pay Rs 5.5 billion ($77 million) to Ericsson AB’s Indian unit. The judges gave him a month to find the funds, and his brother, Mukesh, stepped in just in time to make the payment.
Anil said in a filing that he recognized that the judge would want to know if he could satisfy any order to put up funds from outside resources, including his family.
“I can confirm that I have made enquiries but I am unable to raise any finance from external sources,” he said. Judge Waksman had said in an earlier ruling that he believed Ambani’s defence would be shown to be “opportunistic and false.”
Ambani’s lawyer told the judge that as a result of the comments the tycoon’s relatives were unlikely to lend any funds.
There is a “very substantial risk they will never get it back,” Howe said.
Comments
Rakesh... dont tell us that all those chant VM are Nationalists
And you cant force people to chant this....
Ibraheem Hussain, Udupi, any comments.
This is sad and not right at all , brothers fighting against each other. Those guys dont represent me .
I apology and prayer to the cop.
Walida-e-hind-ki Zindabad :)
Shave BABA RAMDEVS BEARD....very good to know he rejected say ---mantaram.
They never targetted him , this police man objected for vande mataram , so they thrashed him . so CD is misleading its readers .
I did not see any chaddi statement now. Is it tolerenance?
Shocking, the Great India is turning to intolerant India! credit goes to rulers of India and its state.
ONE WHO VOTED TO MODHIJII ACCHE DINNN LET THEM SEE THIS AND SELECT THIER FUTURE.
THIS PEOPLE FRIST SHAVE U R SWAMIJI BEARED THEN US....
MODHIJI IS FAKEJIIII
Acche din effect
Now Arnab will shout in Newshour that the Muslim policemen is an anti national.
Modi government has already gave all the RSS to take the law into their hand. May be one day will come that our nation will become like Pakistan and Afghanistan; if not controlled by these RSS mad dogs.
The Roots of EVIL : ARROGANCE; ENVY and GREED.
Knowledge makes people HUMBLE
Arrogance make people IGNORANT.
I think there are many Ignorants who say they are the superior . but they really are stupids and commit such acts which they themselves open the door of hell.
THIS IS ACHEE DEEN OF MODI
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