From Riches To Rags: Anil Ambani Tells UK Court His Net Worth Is Zero

by GoNews Desk 3 months ago Views 2079
From Riches To Rags: Anil Ambani Tells UK Court Ne
Anil Ambani was once the sixth richest person in the world and in 2012 his net worth was $7 billion. However, lawyers representing him in a British court have said that Anil Ambani has suffered huge losses in the telecom business, due to which he is bankrupt now and his net worth is ‘zero’. 

Ambani has been dragged to the court by three large Chinese banks in a case of recovery of loans worth Rs 4,760 crore. If interest is also added to the recovery amount, the total comes to more than Rs 5,000 crore.

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The three banks, Industrial and Commercial Bank of China (ICBC) Limited, China Development Bank and Export-Import Bank of China, had loaned $925 million or Rs 6,475 crore to Reliance Communications in 2012, which Reliance has not yet paid back to them. At that time, Anil Ambani had taken a personal guarantee of this loan but the company defaulted on paying the loan amount after February 2017.

Now, the three banks have asked a court in London to issue orders in the case for the recovery of Rs 4,690 crore from Anil Ambani.

The Chinese banks claim that Anil Ambani had given his personal guarantee while taking the loan. However, Anil Ambani’s argument is that the guarantee was given in faith and the offer to make personal assets as the guarantee was never on the table.

For the time being, the judge has said that Anil Ambani will have to deposit $100 million or Rs 715 crore in the court. In response, Anil Ambani’s lawyer Robert Howe said, “In  2012, Anil Ambani’s investment was more than $7 billion but now it has reduced to just $89 million or Rs 623 crore. More so, if debts are included, his net worth becomes zero. Evidently, he was a rich businessman earlier, but not anymore.”

On the other hand, lawyers representing the three Chinese banks cited Anil Ambani’s jet-setting lifestyle in response. They said that Anil Ambani owns properties like 11 luxury cars, one private jet and one yacht.

Anil Ambani has been embroiled in defaulting on loan payment earlier as well. Reliance Communications owed Swedish company Ericsson Rs 550 crore and after a Supreme Court order, Anil Ambani’s elder brother Mukesh Ambani had helped him out.

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