Former billionaire Anil Ambani was ordered by a London decide to pay greater than $700 million to a trio of Chinese language banks following a dispute over defaulted loans.
Ambani provided a private assure on the banks’ loans to his Reliance Communications Ltd. in 2012, Choose Nigel Teare stated in a ruling Friday. The tycoon, who has stated his web value is “zero,” has 21 days to make the cost.
Ambani had at all times contested that he had made a private assure — one thing he’d dismissed as an “extraordinary potential private legal responsibility” — however the abstract judgment ruling means a full trial will not go forward.
A spokesman for Ambani stated that different Reliance group operations won’t be affected by the ruling. Reliance Communications filed for chapter final 12 months.
The Chinese language banks “made their declare based mostly on an alleged assure that was by no means signed by Mr. Ambani and he has persistently denied having licensed anybody to execute any assure on his behalf,” the spokesman stated. “The quantity ordered to be paid based mostly on an alleged assure, will in any case scale back considerably upon the approaching decision of” Reliance Communication’s debt.
The 60-year-old is the youthful brother of Mukesh Ambani, the wealthiest man in Asia. Mukesh has bailed his brother out prior to now, making a last-minute cost in an Indian case that might have seen Anil imprisoned.
In the meantime, Anil Ambani advised a London court docket earlier this 12 months that the worth of his investments has collapsed.
“I don’t maintain any significant belongings which might be liquidated for the needs of those proceedings,” he stated in February.
The declare was filed by three state-controlled Chinese language banks together with Industrial & Industrial Financial institution of China Ltd.