New Delhi: Businessman Anil Ambani, Reliance Group chairman and brother of Mukesh Ambani (Asia’s richest man), was recently asked by a UK court to pay $100 million towards a conditional order granted to three Chinese banks. Reportedly, the UK court directed Ambani to pay the amount to the banks who have been pursuing the recovery of over $680 million in loans.
Setting a timeframe of six weeks for the payment, Judge David Waksman said that he did not accept Ambani’s defence that his net worth was nearly zero or that his family would not step in to help him.
According to reports, the judge said, “In my overall conclusion, Mr Ambani has not satisfied me that he can’t make any payment at all.” Judge Waksman also criticised Ambani’s defence’s “lack of candour” and “transparency” in reference to his financial means.
The banks that sued Ambani for loan recovery, Industrial and Commercial Bank on China Ltd Mumbai Branch, on behalf of itself, China Development Bank and Exim Bank of China welcomed the judge’s order. They expressed confidence that their claim in court will be successful.
“We remain very confident in our claim. We hope that Mr Ambani will comply with the court’s order and look forward to the swift resolution of the case at trial,” a statement on behalf of the banks said.
Ambani’s defence stated that the value of his investments has collapsed since 2012. “Mr Ambani’s investments were worth more than $7 billion in 2012, but they are now worth $89 million, and his net worth is zero once his liabilities are taken into account,” said his barrister Robert Howe.
To Ambani’s defence’s claim that he had no access to the assets and shares under the name of his mother Kokila, wife Tina and sons Anmol and Anshul in the form of loans, the banks’ barrister Bankim Thanki said, “Are we seriously to believe that his own mother, wife, and sons can’t help him in his hour of need to comply with a conditional order.” Thanki even likened Ambani’s evidence to the proverb “glossy lipstick on the pig”.
Stating that Ambani is “reviewing the order of the UK court and will take legal advice as to further remedies in appeal”, the business tycoon’s spokesperson explained that the order “pertains to an alleged personal liability”. “It will have no bearing on the operations of Reliance Infrastructure Limited, Reliance Power Limited and Reliance Capital Limited,” the spokesperson added.
