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.
He has been given time till tomorrow morning to file his reply as to why no action should be taken against him.
Comments
Its all about vote bank politics. In fact these pakhandi babas are rapists and believe in homosexuality Those who justify this dhongi baba are indeed knew or pretend to be blind on the fact that many non muslims producing illegal children from extra marital affairs.
Please don't call him such people as Maharaj,
Maharaj is a sacred word. He talks like a drunken man.
He does not deserve for it.
If daring why does he refer indirect. He cant say as Muslims.
The man himself did not marry and expecting his followers to make 40 children.
We have in India many Hindu friends like brothers and sisters.
These people create intolerance amongst peace lovers.
very unfortunate these coward senseless are elected as MPs.
It shows what is the mind-level of those who elected Him.
This is the strategy of BJP to field such a hate mongers to divide the country. They deserve stringent punishment for spoiling public harmony.
Why propaganda , if hindus fear , they are become minority , let these swamies to marry at least one girl and produce children as many as possible , if they capable.... as more official survey non muslims are have more than one wife than muslims..... let the govt to publish 2011 religious wise survey report...!
These swamis are drunkards....they say whatever they feel like...disgusting....must be eliminated from this earth....it will bring peace and tranquility to everyone....
Muslims have the the power and guts to do that in reality. Not like Sakshi Maharaj who afraid to get marry in his life.
What will be the end result if he is found guilty .... He should be kicked out/ Booted out from the Loksabaha...
Let him show a single person with 4 wives and 40 children.... No doubt he is expert in Ramayana and Mahabharatha stories ....
I appreciate EC action. EC should recommend removal of this hate monger and should not allow for further election. I wil appreciate if EC removes voting right of this hate monger. I agree with statement of this hate monger that money from cow slaughter is used for terrorist act. It is well known that beef exporters are bjp sympathizers and huge amount of money is given by these beef exporters to sangh parivar which is being used in terrorist acts. I think this hate monger is also getting a share.
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