After fixing debt ridden Anil Ambani in London Courts by Chinese banks, Chinese firm approach Delhi HC for Rs.995 crores dues. HC orders stay on sale of Reliance Infra shares in BSES

Sensing that Anil Ambani may bowl a googly, Chinese company SEG has approached Delhi HC for recovery of dues

Sensing dubious games from Anil Ambani’s side, Chinese company SEG approached Delhi HC for recovery dues
Sensing dubious games from Anil Ambani’s side, Chinese company SEG approached Delhi HC for recovery dues
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Chinese company SEG in Delhi HC against Anil Ambani for dues

After fixing debt-ridden industrialist Anil Ambani in London court by Chinese banks, Chinese company Shanghai Electric Group (SEG) approached Delhi High Court for recovering dues of more than Rs.995 crores. On Monday, Delhi High Court ordered that Anil Ambani’s Reliance Infrastructure Ltd should not sell its stake in Anil Ambani controlled Delhi’s major two power companies, BSES Yamuna Ltd and BSES Rajdhani Ltd. Sensing that Anil Ambani may bowl a googly, Chinese company SEG has approached Delhi HC for recovery of dues, while the matter is based before arbitration in Singapore[1].

London-based Court had already ordered Anil Ambani to pay 717 million dollars (Rs.5,400 crores) in a case filed by the Chinese banking consortium in May 2020 and the debt-ridden industrialist pleaded before the Court that he is “really” sunk in huge debts[2]. PGurus in December 2019 reported that Anil Ambani’s companies in Telecom and Power had taken an 18 billion dollars loan from Chinese banks from 2008 to 2012. These huge loans were given by Chinese banks to buy and install Chinese equipment in Anil’s Reliance Group’s Telecom and Power projects. Despite India’s Intelligence Bureau‘s objections, Anil Ambani managed to install Chinese equipment in strategic telecom and power sectors in India. Though the loan value was 14 billion dollars, it has now ballooned to 18 billion with interest[3].

The arbitration was involved as per Singapore International Arbitration Centre (SIAC) rules to claim around Rs.995 crore for the alleged default by the Reliance Infra.

Reliance Infrastructure Ltd Monday assured the Delhi High Court that it would not create any third party rights over assets worth over Rs.995 crores till January 27, in relation to a plea by Shanghai Electric Group which has invoked arbitration proceedings against it. Anil Ambani’s Reliance Infra had entered into an agreement with Shanghai Electric Group (SEG) for the engineering and manufacturing of power plants. The SEG invoked arbitration against Reliance Infra on account of its failure to pay for the purchased equipment.

Justice Rekha Palli recorded the assurance given by Reliance Infra’s counsel that it will not create any third party rights over its assets worth over Rs.995 crore till Wednesday. Earlier on January 19, the High Court had asked Reliance Infra to maintain the status-quo regarding its shareholding in two Delhi power distribution companies, BSES Yamuna Ltd and BSES Rajdhani Ltd. The arbitration was involved as per Singapore International Arbitration Centre (SIAC) rules to claim around Rs.995 crore for the alleged default by the Reliance Infra.

The SEG approached the High Court under the Arbitration and Conciliation Act, seeking to direct Reliance Infra to furnish security, by depositing in an interest-bearing account of the High Court claim amount of Rs.995 crore, which corresponds to the minimum amount that is payable by it to SEG in the arbitration. Reliance Infra has opposed the plea saying that the suit itself is not maintainable before this court.

The SEG, in its suit, also sought to direct Reliance Infra to disclose on affidavit, details of all of its assets including any movable and immovable properties, whether such properties may be located within India or outside, and any security or encumbrance created on such assets as on June 26, 2008, the date of the Guarantee Letter. It also sought to restrain Reliance Infra from selling, transferring, alienating, and otherwise disposing of and creating encumbrances on any of its assets.

[with PTI inputs]

References:

[1] Delhi HC stops Reliance Infrastructure from selling stake in Delhi’s power discoms till Jan 27Jan 25, 2021, Times Now

[2] London Court orders Anil Ambani to pay 717 million dollars (Rs 5400 crores) to Chinese banks within 21 daysMay 23, 2020, PGurus.com

[3] Chinese Banks gave loans more than 18 Billion Dollars to Anil Ambani’s Reliance Telecom and Power firms. This was to buy Chinese equipmentDec 06, 2019, PGurus.com

Team PGurus

2 COMMENTS

  1. NO Indian should ever deny nor escape repaying back to those institutions (Indian or foreign) from where they have taken loans. In this case they have money & sleeping on luxury, cheated Indian public, brought equipment against Indian intelligence inputs, bribed the ruling govt to have its say. It is karmic payback time. Ambanis should be stripped of every element of luxury including toilet paper they use in their houses to pay back the amount – irrespective of it is Chinese or Pak or anyone, for Ambanis have transgressed all rules & ethics of the Indian land.

  2. Legally and ethically Ambani is not correct. But he should not pa following the chinese style. They did not honour UN Court ruling. Responsíble for lakhs of death and unemployment. Even in this environment they try all over the world to streal others’ proerties. Why should Ambani pay them?
    We should silently support him for his follies with China

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