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
First of all this hypocrite leaders of BJP are instigating violence in peaceful DK
Ayyo Shobha ....nimde sarkara iruvaga nimge madakaglilla ....hagantha helthidda V.S Acharya ne gotak andbittru ....RIP
anyways ...to ban anything . you must have the right reason which you people do not have ....and court is not that much weak that any one can do anything
viparyasa enandre ....Ashraf koleyadaga ildidda sittu sharath koleyadaga ummalisi horag bandbitthu
hahahaha shobakka, read the statement from our home minister of karnataka, that communal tension in DK is creation of bjp not police.
#stop vote bank politics#
Ban PFI ? Is it a solution? They are lakhs of PFI members in Karnataka alone leave alone India.
They will join or make a new group or name.
Provocative speech by RSS leaders, Gou BD lynchers , arms carrying terrorist camp organiser Sri ram sena . If the police and the political camps had taken care of them long time ago , our beautiful Mangalore would remain peaceful.
Lack of political will from Congress banning and barring hateful speech is the main cause. Don't let Karnataka turn into hinduvta laboratory.
Take care of RSS, PFI also will disappear.
Idondu bere jaati illa mata illa
Madam include Bajrang dal also in your letter and remember you represent s all community
Shoba aligning on pfi & kfd without any proof I am asking shoba you are leading this rss terrorist and its ruthless branches of bajrandal.vhp ect.. they killed Mahatma Gandhi. And now ur pm narendra modi when he was cm in Gujarat state he is leading to kill more than 2000 innocent Muslim's brutally and killed pregnant women's children's and raped elder, younger without any age limit at that time where you slipped ur eyes and ears are dumped. And all over India communal crisis and killed thousands of Muslim your godfather lk advanis rath yatra. And demolished Babri Masjid court accused most your senior leaders where are you that time and in the name cow so many Muslims killed brutally your tongue not uttered a single statement. we well know u & ur terrorist RSS organize this is not an enemy of Muslims its enemy for humanity. go enjoy with yeddi useless politics. chair heaters.
Add new comment