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
The life of this world compared to the Hereafter is as if one of you were to put his finger in the ocean and take it out again, then compare the water that remains on his finger to the water that remains in the ocean. Prophet Muhammad sallallahu alaihi wa sallam, Sahih muslim.
Winning the love of makhlook and getting the hatred of the Khaliq in return is a very bad deal. Insha Allah we will live in this duniya for maximum 100-150 years. The we have to face Allah. What will you reply to Allah? You think doing such things will benefit you, give you izzat. Please understand that benefit, loss, izzat, zillat, disease, shifa all are from Allah alone. Keep Allah happy. These makhlooks cannot do anything for you. If you win the whole world and Allah is angry with you then its very bad. If you win Allah and then even if you get nothing in the world, it is the best deal in the world.
Brother Abu Bakar, we want you and all muslims to go to Jannah and avoid jahannum. Please say the kalima once and read tauba namaaz with a sincere niyat of not doing such kind of deeds again.
May allah give 'hidaya' to these so called 'muslims'
Lack of religion knowledge for this Organization, to bring peace and harmony between different community, to win other communities heart just follow our Prophet's way, even look at other great historian traders like Malik al Dinar / great Muslim Scholor like Kwaja Moinuddin Chisty, how they won other communities heart.
Innala Lillaahi Wa Innaa Ilahyi Raajihoon
Well Done Muslim Brothers.. This should be the way to spread message of peace and harmony. Don't follow the people who copycat Arabs thinking they are following true God. Nothing is proven yet. Don't worry keep the good work going.
Inna Lillahi Wainna Ilaihi rajioon. Muslims left the work of dawah to non muslims & indulging in shirk. Whatever Horekanike you have given is totally Haraam and the sad thing is that people who are doing they are expecting good from others but not from Allah. Haji abubakar parkala, Name indicates that he might have done HAJJ. What is the use of Hajj if they do shirk with allah. May allah give us hidayath.
Dear all,
People of this organisation(UDMPSS) neither muslims nor Hindus, they are only pretending, they can't be trusted anywhere!. beware of them.
These foods should distribute to the poor... they will make dua for the committee... THESE FOODS WILL BE THROWN TO THE GARBAGE AFTER 2-3 DAYS..... NOR THEY WILL EAT NOR THEY WILL DISTRIBUTE TO POOR.... USELESS FELLOW
NOW NEXT HINDUS TURN TO SHOW TO PROMOTE HARMONY...
THEY SHOULD DISTRIBUTE COW TO MUSLIMS AT THE TIME OF BAKRI EID.....
This is really a crazy.....not good at all.....common guys there are many poor Muslim children who are suffering from malnutrition....go and distribute this food items to them....instead of this chaddi worthless creature....this is really a tragedy...
The committee should also know that Swamy was all alone went to Ayodhya from Udupi to demolish Babri Masjid. Which was the main reason behind the communal riots and communalism started in throughout India till today.
Now some Swamy's personal benefited chelas are doing in the name of muslims. Shame on you.
We muslims should keep good relations and harmony with other communities by providing food, shelter, cloths , medical aids to the poor daliths, hindus and Christians but not to give the billionaire Swamy who is always against other communities including daliths.
Next time you can do kola and parba too...
Innaa Lillaahi Wa Innaa Ilaihi Raajiwoon
NAUZUBILLAH
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