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
Chaddis gone Pantloons came, Notes gone Faku Notes started, Bap ray Bap what's happening these Criminal Looters ruling, Master Narean Where are you???? now do not come front, let it dissolve all these note dealings after we will see how it works!!!!!
Subbu, Mangalore,
That app is only for fun. Not for scanning the currency. It does work even on a xerox copy of new Rs.2000 note.
Need to keep an eye on BANGHI PARIVAR.
What Bhakts said and what happened ?
1] Demonetization will stop fake currency circulation.
- Fake currency starts off from their favourite United States of Gujarath and goes across the country.
2] It will stop terrorists funding.
- 3 terrorists held with the New Rs. 2000 note currency, while poor still stand in long queues at banks.
3] Black money will be stopped and black money holders will be jailed.
- SBI waives off loans of more than 50 loan defaulters including Vijay mallya.
4] Demonetization will boost economy
- All markets affected due to lack of sales activities in the past 2 weeks.
- Dollar is higher than ever at Rs. 68.14/ USD.
5] 15 Lakhs will surely com into ur account.
- Government takes people's own hard earned money to fee the crony capitalists, even at the cost of 56 people's death till today.
Mistron, Acche Din Aagaye, ab phir ek bar BJP sarkar
All thanks to Fenku.
This is the trap played by the liquor shop .....
It seems like Bantwal is notorious for fake currencies.....need to keep an eye on it by security system....
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