Once the sixth richest person in the world, Ambani was sentenced by a UK court on May 22 this year to pay $ 716 million (Rs 5,276 crore) including interest and £ 750,000 (7.04 crore). Rs) in legal fees to the Industrial and Commercial Bank of China. , Export-Import Bank of China and China Development Bank. By June 29, the debt he owed, after taking into account accrued interest, had risen to $ 71
Bankim Thanki QC, representing the banks, told the British High Court Commercial Tribunal on Friday that Ambani “was fighting tooth and nail to avoid having to pay us a dime.”
After Friday’s hearing, the banks released a statement saying they intend to pursue law enforcement and all available remedies against Ambani. “Banks will use cross-examination information to pursue all available legal avenues to protect their rights and recover outstanding loans owed to them,” the statement read.
It is understood that Chinese banks are not currently pursuing enforcement against Ambani’s assets in India due to the State Bank of India’s insolvency proceedings against Ambani, currently suspended by the Delhi High Court.
Banks are expected to begin law enforcement actions against its assets outside India based on its revelations in its affidavit.
On June 29, 2020, the High Court ordered Ambani to file an affidavit stating that all of his assets worldwide exceeded USD 100,000 (approximately Rs 74 lakh), regardless of whether they were in his name and all documents under his control, which concern his means of paying the judgment order.
Those documents had to include his income and expenses, assets and liabilities, bank statements, share certificates, balance sheets and profit and loss accounts for all of his activities, and evidence of all his trusts, including family trusts, in which he is appointed. as a beneficiary. The court also ordered him to go to court on Friday via videolink and “answer under oath to all questions posed by the creditor of the sentence.”
A few minutes before his cross-examination, he successfully obtained an order that his financial documents were not to be available to third parties, but failed to obtain his cross-examination in private, despite filing a request.
After the hearing, Deputy Commander Jervis Kay QC ordered him to pay an additional £ 140,000 (Rs 131 lakh) “on account” for the banks’ legal fees for the interrogation hearing while a detailed cost assessment is carried out.
The banks also received legal fees for defending the non-enforcement of privacy. The exact amount Ambani will have to pay is subject to further disclosure, but banks are looking for £ 34,000 (Rs 31 lakh).
After the hearing, a spokesperson for Ambani said: “Mr. Anil Ambani has always been a simple man of simple tastes, contrary to the exaggerated perceptions of his opulence and lavish lifestyle. He is devoted to his family and company; an avid marathoner; and He is deeply spiritual. He is also a lifelong vegetarian, teetotaler, and a non-smoker who would much rather watch a movie at home with his kids than go out on the town. Reports suggesting otherwise are completely misleading “.
The controversy arose over a loan that the three Chinese banks made to Reliance Communications (RCom) in 2012 for $ 925 million (Rs 6,817 crore). RCom initially paid off the loan repayments and then started defaulting.
Chinese banks say Ambani, former RCom chairman, provided a personal guarantee for the loan up to $ 925 million. He denied that the guarantee was binding on him. However, the Supreme Court in its summary judgment of May 22, 2020 confirmed that the banks had established their claim that the personal guarantee was binding on Ambani “well beyond the standard of balancing the odds”.
Clock 3 Chinese banks to assert their rights against Anil Ambani’s global assets