State Bank of India (SBI) is seeking to recover personal guarantees of over Rs 1,200 crore from Reliance Group chairman Anil Ambani. The state-run lender has filed an application in the National Company Law Tribunal (NCLT) to recover the amount from Ambani under the personal guarantee clause of the bankruptcy law, Bloomberg reported citing an update on the court's website. A personal guarantee was given by Ambani to the loans given to Reliance Communications and Reliance Infratel under the personal guarantee clause of the bankruptcy law.
On Thursday, 60-year old younger brother of Reliance Industries Limited (RIL) chairman Mukesh Ambani was given a week to reply to the application by the tribunal, presided over by BSV Prakash Kumar. "The matter relates to a corporate loan availed by Reliance
Communications (RCom) and Reliance Infratel (RITL) and is not a personal loan of Ambani," a spokesperson of Anil Ambani said in a statement.
Debt resolution plans of Reliance Communications and Reliance Infratel were approved by their lenders in March and those are awaiting approval of the NCLT, the spokesman said. Ambani will file suitable replies, he said.
Meanwhile, a UK court last month directed Anil Ambani to pay nearly $717 million to three Chinese banks pursuing the recovery of funds owed to them as part of a loan agreement within 21 days.
At a remotely held hearing, in line with procedures in place for the COVID-19 pandemic, Justice Nigel Teare ruled at the Commercial Division of the High Court of England and Wales in London that a personal guarantee disputed by Ambani is binding on him. It is declared that the Guarantee is binding on the Defendant (Ambani), Justice Teare's order notes. It is declared that the sum payable by the Defendant to the Claimant (banks) pursuant to the Guarantee is $716,917,681.51, it reads.