A UK court has asked Reliance Group chairman Anil Ambani to pay $ 717 million to three Chinese banks within 21 days.
A UK court has asked Reliance Group chairman Anil Ambani to pay $ 717 million to three Chinese banks within 21 days. These banks have to recover this amount from Ambani under a loan agreement.
Hearing in accordance with the procedures applicable in the wake of the COVID-19 epidemic, Justice Nigel Tierre of the Commercial Section of the High Court of England and Wales in London arranged that the personal guarantees that Ambani considered disputed are binding on them.
Justice Tiere said in the order that it is announced that the guarantee is binding on the defense (Ambani). In such a situation, Ambani will have to pay $ 71,69,17,681.51 as a guarantee to the banks.
A spokesperson for Anil Ambani said that the matter relates to the alleged personal guarantee given by Reliance Communications on global loans taken in 2012 for global refinancing.
The spokesman said, “It is clarified that this is not Ambani’s personal loan. The Industrial and Commercial Bank of China allegedly made this claim on the basis of a guarantee that Ambani had never signed. Also, Ambani has consistently said that he did not authorize anyone to give this guarantee on his behalf.
The spokesman said that as far as the decision of the British court is concerned, there is no possibility of its enforcement in India in the near future, after which Ambani is seeking legal advice in this matter after which he will take further action.
The case is the Industrial and Commercial Bank of China and China Ltd. The Mumbai branch is linked to China Development Bank and Exim Bank and China.
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A conditional order was issued in February in support of these banks. Judge David Waxman, while hearing the case on February 7, ordered the payment of $ 100 million in six weeks until the full hearing in 2021.
In this week’s order, canceling the date of hearing on March 18 next year, also ordered the court costs in favor of banks. This has added 7,50,000 pounds to the total outstanding balance.
According to the court order, Ambani has to pay $ 717 million. This includes principal of $ 54,98,04,650.16, interest outstanding of $ 5,19,23,451.49 as of May 22 and default interest of $ 11,51,89,579.86 million.