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
Rasheed Bhai......... No individual is above the Nation. Personal attitudes will not damage the whole NATION and its CONSTITUTION. But a Political Party as a whole can make a difference to the NATION. Being a citizen of INDIA, just evaluate the Nation under BJP rule and CONGRESS rule you will get your ANSWER. Thank God.... your family is safe and secure, but think about those families who were the victims of BJP workers. The intolerance in last 4 years has gone from bad to worse. For God's sake, please keep your difference away especially for this State election and for upcoming General Election in Year 2019. All the best to all the Kannadigas and lets give another chance to CONGRESS to keep the injurious political party BJP much far away.
i think muslims should vote for Ashraf . attitudes of U.T is dangerous than bjp , he is selfish , his last five years attitudes shows he may sell entire community for his personel gains... such candidates should be defeated ....
improve ullal means..... he had not done anytihng to his own place then how we can trust him that he will develop karnataka/India........ i am not anti congress dear. but those who did not work for the welfare of the society should not win this election.... anyone maybe...... staying as loyal, honest, visiting funeral is not that he is good MLA or Minister.......
Abbu , what is your thinking brother, to improve ullal, you will vote against congress, really sad with your thinking , thing about India and people of Bharat , if you divide vote against the situation will be same , vote congress to get good results
use common sense please dont vote any muslims indipendent candidate, vote only congress
Some selfish and jealous people are trying to misguide the community. Instead of supporting and guiding the community to the unity, they try to divide just because of their selfish motives. Community should be very vigilant and aware of what is happening. While all secular forces trying hard to stop this Communal party, this kind of selfish people are trying to divide. They harm the community indirectly. Its better not to give an opportunity to our enemy rather than harming our own community. So be aware of this kind of selfish people. Its very easy for all political parties to be communal but secular parties are struggling. Instead of supporting secular parties, these selfish people trying to divide the votes. Very bad. Need to reject him outright.
Under the current state of affairs, we need to think about the whole KARNATAKA STATE and our great nation "INDIA". This JD(S) candidate is BJP's agent and they are not bother about our STATE & NATION. Even though if he win election this time, I can challenge he will never improve ULLAL. He will just fill his pocket and share few penny to BJP. Let all the Kannadigas be SMART and vote for CONGRESS - because the current situation in INDIA had forced all the MUSLIMS to vote only CONGRESS. We all should think that its CONGRESS V/S BJP only. No other parties should exists at this moment of time. Lets build a very strong and smart INDIA.
better vote all muslims for ashraf ... then how there will be vote divide..... UT khadar has not done anything to improve his place ullal
Good news for BJP
If you vote for Ashraf it is like voting for BJP. Do you want Modi and Amit Shah to win?
Be smart and don't vote for Ashraf
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