 in 21 days for non-repayment of loans to Chinese banks.){kind=link}
A London Court has ordered businessman Anil Ambani to pay 717 Million Dollars (Rs.5400 crores) in 21 days for non-repayment of loans to Chinese banks. The younger Ambani’s businesses had taken huge loans from Chinese Banks during the period 2007-2010 for purchasing Chinese equipment to use in his Telecom and Power sector companies in India.
The ruling done through video conference said that a personal guarantee disputed by Anil Ambani is binding on him. “It is declared that the Guarantee is binding on the Defendant (Ambani),” Justice Teare’s order notes.
The ICBC bank made its claim based on an alleged guarantee that was never signed by Mr Ambani and he has consistently denied having authorised anyone to execute any guarantee on his behalf. The London Court’s Order is a huge embarrassment to Anil Ambani and if not paid, Chinese Banks could alert Interpol.
The had taken their claim for summary judgment to the UK High Court and in February were granted a conditional order, in effect a deposit to be paid into court pending a full trial in the case. Though the Intelligence Bureau (IB) objected to Anil Ambani’s firms from installing Chinese equipment in Telecom and Power sector, Ambani was able to overcome IB’s objections.
In February, Judge David Waksman, presiding over the matter had set a six-week timeline for the payment of $100 million pending during the hearing in the case filed by Chinese Banks. The court order this week vacates a trial date previously set for March 18 next year and also issues a court costs order in favour of the banks, adding a further 750,000 pounds to the overall amount owed.
According to the court order, the nearly 717 million dollars to be paid by Anil Ambani comprises of the principal amount outstanding under the Facility Agreement of $549,804,650.16; interest outstanding as of May 22 of $51,923,451.49; and default interest due of $115,189,579.86.
“The final amount owed by the Defendant (Ambani) to the Claimant (banks) under the Guarantee shall be assessed subject to the outcome of the RCom Insolvency Action,” the court order states, leaving the option open to the banks to revisit the final amount in future.
-India Legal Bureau