Business tycoon Anil Ambani is currently embroiled in a loan repayment case involving three Chinese banks from whom Reliance Communications took a loan in February 2012 with his personal guarantee. The company has defaulted on the loan and is currently under insolvency proceedings.
According to India Today, the banks sued him and on May 22, the UK High Court ordered him to repay the debt of Rs.5,281 crore plus Rs. 7 crore legal costs (a total of $7.17 million) by June 12. When the banks did not recover the outstanding amount, they asked for his assets to be declared on June 15.
Have sold all jewellery to pay legal fees: Anil Ambani https://t.co/Nk08aP1CXN pic.twitter.com/YQ4fl4CeWc
— The Times Of India (@timesofindia) September 25, 2020
In yesterday’s virtual cross-examination with the UK court, The Times of India quoted Anil Ambani saying,
“My expenses are minimal and being borne by wife and family. I don’t have a lavish lifestyle and no other income. I met legal expense by sale of jewellery and, if I have to meet further expenses, (it) will be subject to approval by the court to dispose of other assets.”
Former billionaire #AnilAmbani claims his lifestyle is disciplined, not 'lavish'
Three state-controlled Chinese banks have pursued Ambani for more than $700 millionhttps://t.co/HFbOyVeInV— Gulf News (@gulf_news) September 26, 2020
He was asked several questions over 3 hours and he replied saying he had negative net worth. According to Mumbai Mirror, when questioned about credit card payments at luxury brands like Harrods, Dolce and Gabbana and Harvey Nichols, he said they were purchases by his mother. To the yacht he gifted his wife Tina Ambani, he replied that it was owned by a corporate entity, he was seasick and hadn’t used it in years.
“I am a 61-year-old man, I lead a very disciplined lifestyle. I do not drink…I do not smoke. Any suggestion of a lavish lifestyle is the creation of the media.”
Anil Ambani 2 UK Court:
I’m A NIL person 😅😅 pic.twitter.com/a64SlpUrQr— Chatraraj® (@ItsCssOfficial) September 26, 2020
When asked about luxury cars and private helicopters he declared, “These are speculative media stories. I have never owned a Rolls-Royce. At present, I use one car.”
Furthermore, he stated that his 12 million equity shares in Reliance Innoventures were “worthless”, all their artwork was owned by his wife, he received no professional fees from Reliance Infrastructure, his home electricity rent of Rs.60.6 lakh for 8 months was due to high tariff rate in South Mumbai, he received loans from his mother and son and lived in a rent-free property owned by his brother.
The banks have said that will explore all legal options to recover the loan.