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
Yeddi's entry... benefits Congress
Congress Rocks...We would have achieved more Votes if SDPI and JDS were not in race. Well it is a victory of Common People.Jai Hind
Winners serve the people to the best & Losers try for the next time.
CONGRATULATION.
HARD WORK OF VINAY kUMAR SORAKE AND PARTY
First up all Congratulations the winners, neck to neck fight between Congii and Criminal Parties, where its stopped now in Top of Neck, any one good Friday, bit side line goes with in a minute falling down with in a minute, even there is no other Substitute to add in Essence??? neck to neck!!!!!, Master Blaster D Gowdanna , where is Kumaranna in Kaup no Relation not yet managed? any way Zero in your account, we will see playing Game behind. What about 'IPDS\ choors they washed out, couldn't manage grab anything looks sold out for Havala money????? like last rain Mushrooms is it required all these dramas???????
Chaddi gone Trouser came. Yaddi Come Who goes???
Any way Jai hoo Siddaramanna.
Jai Hoo Surakanna."
Congress says national level alliance won't be needed. So True!! RahulGandhi alone is enough to destroy
Greed of Congress for power grab is so desperate that it won't mind destroying India for its own political gain.Shame congress
Congress coined 'Hindu terror' to woo Muslims.
we also won 11 seats.
Congratulations
everyone must first understand that whomever comes to the power we are not getting anything, same life we are living, from the independence,
ache din agaya phirse,
congress rolling back, bjp's thug life
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