Reliance Group Chairman Anil Ambani has expressed his inability to pay dues worth $680 million (over Rs 4,860 crore) in defaulted loans to three Chinese banks, saying he doesn’t hold “meaningful assets” that can be liquidated and his net worth is “zero”.
The Chinese banks — Industrial & Commercial Bank of China Ltd., China Development Bank and the Export-Import Bank of China — in a lawsuit filed in a London court said Ambani should be ordered to deposit the amount in court’s account. Industrial and Commerical Bank of China (ICBC) is the sole claimant in the case before UK High Court and is representing the other two lenders.
The case pertains to a loan worth $925 million given to Ambani’s now bankrupt Reliance Communications in February 2012. RCom repaid a portion of the loan, but defaulted on its payment obligations in February 2017.
In response to the lawsuit, Ambani said the overall value of his investments had collapsed. “The current value of my shareholdings is down to approximately $82.4 million and my net worth is zero after taking into account my liabilities. In summary, I do not hold any meaningful assets which can be liquidated for the purposes of these proceedings,” he was quoted as saying in a court filing disclosed on Friday.
Meanwhile, a spokesperson for Anil Ambani said: “Mr Ambani is reviewing the order of the UK Court and will take legal advice as to further remedies in appeal. The order pertains to an alleged personal liability of Mr Ambani and will have no bearing on the operations of the Reliance Infrastructure Limited, Reliance Power Limited and Reliance Capital Limited.”