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
Smart administration would do the required work done and send a bill to MRPL......and give them a deadline to pay or face closure consequences......
i request mayor to please do the road work soon, its a totally waste to wait for MRPL to do the work, they will file the case to sc and road work will be pending for almost 20years,
yenchi savuda road marre, bega sama manpule pokadijjandala yerda yerda nattunek, kass ejjida bele ejjandina employees deppule.
really a worst road
ora bega sama manpule MRPL dakulu road g kass paduna athete undu.
It's true that MRPL vehicles are doing most damages to this road and it's their social responsibility to keep this road safe and drive worthy..coz of MRPL, locals suffered lot..atleast this much favor MRPL should do..
Mayor Saab dont forget that this road is part of MANAGALORE corporation and locals pay tax to corporation,,so atleast you have to repair it temporarily until MRPL fix it for permanently. now its condition is pathetic...and need all elected members to push MRPL to do the needful immediately. Both our MP & MLA are in deep sleep..pour some water on them also so that let them wake up..
Good move Mr. Harinath, rather after 20 days don't let the vehicle going to and from of MRPL to use the road unless cleared by MRPL.
good move this plan should be implemented everywhere, and more thing i agree they used road more in that location so it got damaged, what about the normal two wheeler and all like time road tax u will receive and vehicle will not run that much whatever u charge is more than that, always common people suffer.
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