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.
Mahesh S Patil, the judge of second additional civil court and JMFC, Managluru, ruled that Mr Uchil should be given a compensation of Rs 50,000 along with interest at the rate of 9% per annum from the date of suit till the actual payment towards damages.
Comments
Dear Abdulraheem Uchil,
Hope these messages, will contribute you a major change in your life as a TRUE MUSLIM.
At least now you have to change yourself for sake of your own.
All community people will love you, if you truly learn and change.
Allau is Gafoor Al Raheem. He accepts sincere apologies and Tauba
I really respect for the word what he said is
About the interest being Muslim !!!
Dear brother,
You should now think how many people in your own community disagree with your principles.
Just for materialistic benefits you are compromising with teachings of Great religion where you borned with.
This world is not permanent. You and we are here to prepare in this life for the next permanent life.
Here we are supposed to face all type of difficulties to enables to lead the next life comfortably.
Join other your fellow community members. Live with them.
don't earn their enmity.
May Allah forgive us and you.
Dear brother,
You should now think how many people in your own community disagree with your principles.
Just for materialistic benefits you are compromising with teachings of Great religion where you borned with.
This world is not permanent. You and we are here to prepare in this life for the next permanent life.
Here we are supposed to face all type of difficulties to enables to lead the next life comfortably.
Join other your fellow community members. Live with them.
don't earn their enmity.
May Allah forgive us and you.
Dear Mr Rahim,
Congrats on winning the law suit.
In my opinion, you dont have to listen to the negative comments, especially to that of you receive from bearies. It doesn't matter which political party you belong to, as long as you do good service to the society.
They advise you on how to be 'true muslim'. 'True muslim' tag is not 'universal'. Till today nobody can unambiguously/univocally/indisputably define 'true muslim/islam'. We have 100s of parties in Islam. Each party considers themselves as 'true muslims'. This confusion will never ever be cleared until end of this world. Even terrorist claim they are 'true muslims'.
So, please continue your good works sir. By good works I mean moral/ethical and socially beneficial works, which are independent of any religion. Good is good. Bad is bad. No need any religious tags/support for it.
Thanks for valuable suggestions,(positive and negative comments )
What a joke Rahim!!! From which jungle these so called politician are coming from... Redicolous
Only in front of Media he is telling that he is not accepting interest. The real matter is entirely different. If he is a true Muslim he never join facist party like BJP. If he take interest or leave interest what is the difference....??? for him.
Dear Raheem Bhai,
If you are a true muslim then you should not accept even 50,000/ rupees . Because it is not that your hard earned money. Being a true muslim atleast you should donate this money to some charitable organization such as Old home , disabled children center or orphanage , then only you can say you are a true muslim.
Ra(hi)m Uchila, you cannot be a true muslim by not accepting interest, you have to learn and practice Islam to be come Muslim.
example for the man kind, best of rahim uchila \Being a ‘true Muslim’ I cannot accept interest,” he said."
By the way, what was the actual allegation? Can you please publish that defamatory article here ? :p
Rahim uchil shirt color and pose super
Just avoiding interest will not make a person true Muslim. A Muslim has to set example by practicing all teachings of Islam in life, so that even Non-Muslim be attracted.
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