New Delhi: Three Chinese banks, The Industrial & Commercial Bank of China Ltd., China Development Bank and the Export-Import Bank of China are suing Anil Ambani in a London court for failing to pay back a loan of $680 million.
As said by ICBC’s lawyer, Bankim Thanki, the banks agreed to loan $925.2 million to Reliance Communication Ltd in 2012 on a condition that he provides a personal guarantee. Some of the repayments were made by the wireless carrier but in February 2017, it defaulted on its payment obligations.
Anil Ambani on this said that he never gave a guarantee tied to his personal assets. Earlier this year, India’s Supreme Court threatened Anil Ambani with prison after Reliance Communications failed to pay 5.5 billion rupees to Ericsson AB’s Indian unit. This was later resolved when his brother Mukesh stepped in to make the payment.
As per a court filing, Anil went to Beijing in 2011 to negotiate a loan with ICBC’s former Chairman Jian Jianqing. But the legal dispute still remains whether Ambani or one of his associates went on to provide a personal guarantee as security.