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
@ everybody.. its her choice.. she does not want to wear.. she did not wear it.. why are you people getting hurt, she did not wear any indecent clothes due to which you people are getting offended
All actresses wear burka when they go to visit shrines to pray to bring goodness for their films....
When our FM Mrs. Sushma Swaraj can wear hijab being a minister and a BJP leaders why this lady can not ?
ASK your GRANDMA how the western world tricked the Moral women of india into their way of life style... which U need to learn from her...
Women in punjab are almost covered..
Dont keep your head covered only in Guruduwara... follow your scripture and be dutiful to your CREATOR rather than following blindly the western created world.
This is a good message to the west. Like Heena said that forcing anyone to wear hijab is against the spirit of sport, it is also against freedom of rights & humanity to enforce ban on hijab for those who would like to wear. Whats goes around comes around.
When sachin tendulkar can wear 1 kg of the helmet from very first ball. And can concentrate superbly.
And for u 30gm of hijab is difficult for u to concentrate. Actually ur not a sportsmanship women.
The Qur’an says: “O Prophet, tell your wives and your daughters and the women of the believers to bring down over themselves of their outer garments. That is more suitable that they will be known and not be abused. And ever is Allah Forgiving and Merciful.” (33:59) The implication there is that if women do not cover themselves adequately with their outer garments, they may be abused, and that such abuse would be justified.
If Sachin tendulkar can wear helmet from the very first ball. What is the problem..
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