In 2012, Anil Ambani had taken up 3 major loans from three Chinese banks which amounted up to $717 million. According to Anil Ambani, he did not give any personal guarantee to them. Anil Ambani claims that he had taken these loans as a corporate loan and not any kind of personal borrowing. The 3 Chinese banks are CDB, ICBC and C-EXIM. On May 22, the UK court, directed Anil to repay the amount of $717 million to the Chinese banks within 21 days, Ambani kept claiming that it was not a personal borrowing. And Ambani said that, his net worth was almost zero and his family won’t help him if things got really tight for paying up to $100 million. The UK court at the end declared that Anil Ambani has an inability to personally deposit a sum of $ 100 million.

In 2016, Ambani made a statement, “As regards the proceedings filed by SBI, he emphasized that this also does not relate to any personal borrowing but arose out of a guarantee given for a loan which was availed by Reliance Communications and Reliance Infratel, way back in 2016 to repay the debts of Chinese and certain other Indian Banks.”

Anil Ambani had borrowed a loan of Rs.1200 crore from SBI which is mentioned as “Indian Bank” in the statement made above. As the UK court declared him insolvent, SBI decided to move the insolvency case to the court for making the recovery under the bankruptcy law. It was indicated by Ambani himself that he had given a personal guarantee to SBI.

The Supreme court rejected the plea by SBI against Anil Ambani on the grounds of personal insolvency and bankruptcy code (IBC) against him. The case has now been handed over to the High court who will consider the matter on 6th October. As it was indicated that SBI was guaranteed a personal borrowing, the Supreme court declared that the Rcom and Reliance infratel have defaulted on their loans and thus their accounts are declared as NPA’s from August 2017.

NEWS REPORTED BY:

VRIDHI BHAGNARI.