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
Indian National Father Mahathma Gandhji Killer RSS group , why and how you people celebarate National days ...Oh Bhattaaaaa...
by wearing neerdose
To celebrate national festivals, by wearing chaddi or pant?
RSS never hoisted national flag in their centers after independence.
celebrates Pakistan independence 1 day before ours and is teaching others now.
Hypocrisy
Va Marl mare ....Bhatta is so scared of PFI . now when his fathers like Times Now and other paid media started to bark abd trying to bite the mighty PFI ....goons like BHATTA is started to come out from caves ....
bisi tagidre matra benne karaguvudu
Who let the dog out.. bow bow bow
Unfortunately good secular are being killed by the criminals like these. Such criminals are lucky for not being harrassed or touched by anybody. This is temporary situation.
The God is watching and relaxing him to do more sins. Slowly he will be caught and nobody can save him.. We have seen many criminals in the past with all attrocities beyond the bounds. Finally their day had come.
Nobody can dare to force any religions, what to follow and what not to follow. It is not the business of anybody. It is command what they are following from their God. If he wants he can do at his home even he can not force his people at the temple.
He is utter stupid, Politics is not controlled by any group or religion. It is the choice of democracy. The majority in the state is Hindus. But all are not stupids like him.
Though they are majority, they selected good government. Because of Northern states, BJP came to power, now all Hindus are fed-up of Modi's group.
their end is also very imminent. Modi's time has come to get Political Sanyasam.
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