London : Anil Ambani on Friday argued in the England High Court in a dispute related to the debt of Chinese banks that their net worth is zero, they are insolvent and therefore cannot repay the arrears. Even the family members will not be able to help them. However, the court rejected the pleas of Ambani’s lawyers and ordered to deposit $ 100 million (Rs 714 crore) in 6 weeks. Three Chinese banks – Industrial and Commercial Bank of China, China Development Bank and Exim Bank of China – had filed a case against Ambani in a London court. These banks had given a loan of $ 700 million (Rs 5,000 crore) to Ambani’s company Reliance Communication (RCom) in 2012, but RCom could not pay. Banks claim that Anil Ambani was the guarantor of the loan.
The judge said – there is no transparency in Ambani’s arguments
Ambani’s lawyers told the court that the value of his client’s investment in 2012 was $ 700 million (Rs 50,000 crore), but now it is zero. The bank’s lawyer questioned Ambani’s expenses and lifestyle, questioning this claim. The lawyer cited Ambani as having 11 luxury cars, a private jet, yacht and rent-free access at Seawind Penthouse in South Mumbai. After listening to both the sides, Judge David Waxman said that there was no transparency in the defense arguments made by Ambani citing the financial situation.
Banks lawyer said- how to believe that Ambani’s family cannot help him?
Lawyers for the banks also said that Anil Ambani’s family members had helped him on several occasions. Ambani’s lawyers said their client did not have access to assets and shares of mother, wife and sons. But, the lawyer for the banks raised the question – can it be assumed that Anil Ambani’s mother, wife and son will not help him in time of need? Also said that Anil’s brother Mukesh Ambani is the richest in Asia.