London court orders Anil Ambani to pay 717 Million Dollars (Rs.5400 crores) to Chinese banks within 21 days

Jumbo-sized loans from Chinese Banks taken by Anil Ambani come to roost as a London High Court asks him to pay $717 million

Jumbo-sized loans from Chinese Banks taken by Anil Ambani come to roost as a London High Court asks him to pay $717 million
Jumbo-sized loans from Chinese Banks taken by Anil Ambani come to roost as a London High Court asks him to pay $717 million

In a big development, a London Court has ordered on Friday to debt-ridden controversial industrialist Anil Ambani to pay 717 Million Dollars (Rs.5400 crores) in 21 days for non-repayment of loans to Chinese Banks. Anil Ambani had taken around 18 Billion Dollars (Rs.1,35,000 crores) from Chinese Banks during the period 2007-2010 for purchasing Chinese equipment to use in his Telecom and Power sector companies in India.

In a video conference, Justice Nigel Teare ruled at the Commercial Division of the High Court of England and Wales in London that a personal guarantee disputed by Anil Ambani is binding on him.

“It is declared that the Guarantee is binding on the Defendant (Ambani),” Justice Teare’s order notes.

“It is declared that… the sum payable by the Defendant to the Claimant (banks) pursuant to the Guarantee is $716,917,681.51,” it reads.

Reacting to the Judgment, Anil Ambani’s spokesperson told media in an obtuse way that this was not a personal loan of Mr. Ambani. The ICBC (Industrial and Commercial Bank of China) made their claim based on an alleged guarantee that was never signed by Mr Ambani and he has consistently denied having authorised anyone to execute any guarantee on his behalf. The London Court’s Order is a huge embarrassment to Anil Ambani and if not paid, Chinese Banks will alert Interpol to arrest him whenever he goes out of India, say International Law experts.

“Chinese are not fools. If he not paying as per Court Orders, they will alert Interpol and get him arrested when he goes abroad. Chinese will alert their embassies and their friendly countries to pick him,” said International Law experts.

The banks – Industrial and Commercial Bank of China Ltd. Mumbai Branch, China Development Bank and Exim Bank of China – had taken their claim for summary judgment to the UK High Court and in February were granted a conditional order, in effect a deposit to be paid into court pending a full trial in the case. PGurus reported about the 18 Billion dollars taken by Anil Ambani’s companies in the Telecom and Power sector to buy Chinese equipment during the 2008-2010 period. Though the Intelligence Bureau (IB) objected to Anil Ambani’s firms from installing Chinese equipment in Telecom and Power sector, Ambani was able to overcome IB’s objections[1].

Earlier Judge David Waksman, presiding over that hearing on February 7, had set a six-week timeline for the payment of $100 million pending during the hearing in the case filed by Chinese Banks. The court order this week vacates a trial date previously set for March 18 next year and also issues a court costs order in favour of the banks, adding a further 750,000 pounds to the overall amount owed.

According to the court order, the nearly 717 million dollars to be paid by Anil Ambani comprises of the principal amount outstanding under the Facility Agreement of $549,804,650.16; interest outstanding as of May 22 of $51,923,451.49; and default interest due of $115,189,579.86.

“The final amount owed by the Defendant (Ambani) to the Claimant (banks) under the Guarantee shall be assessed subject to the outcome of the RCom Insolvency Action,” the court order states, leaving the option open to the banks to revisit the final amount in future.

The reference is to an ongoing State Bank of India (SBI) Insolvency Application in the National Company Law Tribunal (NCLT) in India related to Reliance Communications (RCom), which the Chinese banks’ legal team had argued had no bearing on the English Court’s ability to proceed to determine their clients’ claims. Ambani’s spokesperson said the amount ordered to be paid based on the “alleged guarantee”, will “reduce substantially” upon the imminent resolution of RCom’s debt in accordance with the Insolvency & Bankruptcy Code, 2016.

“The Order of the UK court will have no bearing on the operations of Reliance Infrastructure Limited, Reliance Power Limited and Reliance Capital Limited,” the spokesperson said.

The Industrial and Commercial Bank of China Ltd. Mumbai Branch, on behalf of the three Chinese banks, had sought the summary judgment against Ambani over an alleged breach of a personal guarantee on a debt refinancing loan of around $925 million in February 2012.

Anil Ambani’s arguments that he denies providing authority for any such guarantee were rejected by the British Court. At the last hearing in the case in February, Justice Waksman had ruled that he did not accept Ambani’s defence that his net worth was nearly zero or that his family would not step in to assist him when “push came to shove” to cover the conditional order amount of $100 million.

“Anil Ambani played tricks in Indian Courts in 2G scam-related cases. But this is London Court and petitioners are Chinese Banks. His monkey tricks won’t work anymore,” said International Law Experts.

References:

[1] Chinese Banks gave loans of more than 18 Billion Dollars to Anil Ambani’s Reliance Telecom and Power firms. This was to buy Chinese equipmentDec 6, 2019, PGurus.com

Team PGurus

20 COMMENTS

  1. I think the Judgement from England will not be enforceable in India. The Ambanis will BuyOff The Corrupt officials in India. They already Own Modi.

  2. Don’t understand how is the UK court has any jurisdiction over a loan given to Indian company by Chinese bank ?
    What power it has if AA does not comply ?
    When the personal guarantees are not signed nothing can be recovered from a Bankruptcy. PLAIN AND SIMPLE

  3. Mere Dost drama to abhi shuru hua hai. Aagey aagey dekho kya kya hota hai is desh mein. Andher nagri chopat raja.

    Jai ho Bharat mata ki.

  4. Happy to hear about this development…. Ambanis are the most corrupt fellows….they need to pay for having sourced the equipment from the enemy China…funded with their chinese money….most delightful news…..Indian courts to learn lesson in justice delivery
    Modi should cancel the Rafale deal given to Reliance Ambani brothers. The Ambanis are the most corrupt on the earth itself. Give that Tatas to service Rafale.

  5. It took several decades to build business empire based on ethics and Dharmic (Righteousness) principles by Tata Group in India. Like father the sons, Ambanis catapulted to the top by adopting backdoor methods to amass wealth and power by hook or crook. While average Indians Keep screamIng in media “not to buy cheap Chinese goods” look at what Ambanis do as they become a prey, getting into the deep clutches of being taken over by China. Even Narendra Modi cannot help Ambanis and other stupid corrupt India whom succumb to greed and make all Indians vulnerable and weak. List of Top Corrupts representing India – Swell in big numbers starting from the past Finance Minister, PC, the Corporate honchos like Ambanis, Vijay Mallya, Lalit Modi besides Diamond merchants like Mehul Choksi, Nirav Modi and defaulters et al. The list is too long who represent the status of post independent India. India never punishes their erring cream of their crops in all walks of life.

    • Mukesh ambani right hand of Modi and you saying even can’t help Modi, since 2013 they both supporting each other to make money from backdoor or from front door. We are praying ASAP Mukesh Ambani and Modi die.

  6. It took several decades to build business empire based on ethics and Dharmic (Righteousness) principles by Tata Group in India. Like father the sons, Ambanis catapulted to the top by adopting backdoor methods to amass wealth and power by hook or crook. While average Indians Keep screamIng in media “not to buy cheap Chinese goods” look at what Ambanis do as they become a prey, getting into the deep clutches of being taken over by China. Even Narendra Modi cannot help Ambanis and other stupid corrupt India whom succumb to greed and make all Indians vulnerable and weak.

  7. And Modi wants to give the Rafale deals to him? as if he is experienced than HAL. Oh the files have been stolen under the nose of the CHOWKIDAR ?

  8. Anil Bhai…. Ek b rupees mat denah Chinese wala ko… We are with you… Koi toh desh ke liye kch achha kr raha h…. Baki log India se chori krke bhaag jate….

  9. Company Loan Amount (Rs. in crores)
    Reliance (ADAG) 12800
    Essel 8400
    DHFL 4375
    ILFS 2500
    Jet Airways 1100
    Kerkar Group 1000
    Omkar Realtors & Developers 2710
    Radius Developers 1200
    CG Power 500

    About Rs 34,000 crore granted by Yes Bank to 44 companies of its top ten defaulters have gone bad. While Rs 12,800 crore loans to Anil Ambani group have turned sour, Essel group owes Rs 8,400 crore and DHFL Rs 4,735 crore.
    the bank is saddled with soured loans of over Rs 2,500 crore to IL&FS.
    Other big defaulters
    It has reported Rs 1,100 crore bad loans to Jet Airways. Kerkar Group and its two companies, Cox & Kings and Go travels, were granted loans worth Rs 1,000 crore.
    The NPA list list includes Bharat Infra, McLeod Russel Assam Tea, Eveready of BM Khaitan Group (Rs 1,250 crore), Omkar Realtors and Developers (Rs 2,710 crore), Radius Developers (Rs 1,200 crore) and C G Power (Rs 500 crore).

    The Yes saga
    Rana Kapoor, the founder and former MD & CEO of YES Bank, was sent to three days of custody in march after being taken earlier for questioning by the Enforcement Directorate (ED). Kapoor was reportedly questioned for over 20 hours over charges of Money Laundering, under the provisions of the Prevention of Money Laundering Act (PMLA).

    Shares jump
    Shares of YES Bank hit upper circuit of 10 per cent in march Wednesday’s early trade after administrator Prashant Kumar on Monday said he is hopeful of the moratorium on the private sector lender being lifted by Saturday. The scrip advanced to Rs 23.35 against the previous close of Rs 21.25.

    Restructuring scheme
    Yes Bank has been put under a moratorium by the Reserve Bank till April 3, and customers are not allowed to withdraw more than Rs 50,000 from their accounts. During the moratorium period, the bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. As per the RBI’s draft reconstruction scheme, country’s biggest lender by assets State Bank of India will pick up 49% stake in YES Bank under a government-approved bailout plan by infusing capital of Rs 2,450 crore. Bank’s financial health is not sound as it has failed to raise enough capital under the new leadership of Ravneet Singh Gill, who took charge as Managing Director and CEO from March 1, 2019.

    india is the worlds most corrupt country after america and the rich people of india take money of the poor and doesent repay loans just writeoff just like airindia giving discounts to politicians and because of that falling in debt, india always licks the boot of america and the rich people &politicians of our country.

  10. Why you didn’t take loan from India bank no one will say anything if will not pay loan in india bank
    You have take loan from China than they will not left you

  11. Again a white man has to read you the law wrt your transgressions ,but then chronic offenders are just that until they are sentenced.by a legal system that delivers.

  12. Happy to hear about this development…. Ambanis are the most corrupt fellows….they need to pay for having sourced the equipment from the enemy China…funded with their chinese money….most delightful news…..Indian courts to learn lesson in justice delivery

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