Anil Ambani earlier moved the Delhi High Court against the appointment of a resolution professional (RP) on the personal guarantee given by him against a loan taken by Reliance Communications Ltd (RCom) and Reliance Infratel Ltd (RITL) from SBI.
Indian lenders after burning their fingers in the Vijay Mallya-Kingfisher Airlines case have been aggressive in chasing loan defaulters in cases where there is a personal guarantee by promoters.
A spokesperson of Anil Ambani has said the company is reviewing the NCLT order and taking advice on filing appropriate appeal against appointment of RP.
The public sector lender had approached the tribunal under Section 97(3) of the Insolvency and Bankruptcy Code (IBC), seeking its intervention to direct the insolvency board to nominate a resolution professional (RP) to assess and submit a report on the assets owned by Ambani.
In 2018, the company sold its Mumbai energy business to Adani Transmission for nearly Rs 18,800 crore, which reduced its debt to nearly Rs 7,500 crore.
Speaking at the annual general meeting of group company Reliance Infrastructure (RInfra), Ambani said he had only signed 'a power of attorney limited to executing a non-binding letter of comfort to the Chinese banks' when the now-bankrupt RCom borrowed money in 2012.
He reportedly told ED officials that all transactions between ADAG and Yes Bank are in compliance with the law and financial regulations.
The agency is expected to record the statement of the 60-year-old Ambani under the Prevention of Money Laundering Act (PMLA).
They said Ambani has been asked to depose at the Enforcement Directorate office in Mumbai on Monday as his group companies are one among the big entities whose loans went bad after borrowing from the crisis-hit bank.
"However the delay in debt servicing is due to prohibition on the company to dispose off, alienate, encumber either directly or indirectly or otherwise part with the possession of any assets, pursuant to order dated November 20, 2019 passed by the Delhi High Court," it said.
A lawsuit was put forward by three state-controlled Chinese banks that claimed they loaned $925 million to Ambani’s Reliance Communications in 2012 provided that Ambani could personally guarantee the debt.
The report noted that the lawsuit was put forward by three state-controlled Chinese banks that claimed they loaned $925 million to Ambani’s Reliance Communications in 2012 provided that Ambani could personally guarantee the debt.
The Industrial and Commercial Bank of China Ltd Mumbai Branch, on behalf of itself, China Development Bank and Exim Bank of China, had sought summary judgment against Ambani over an alleged breach of a personal guarantee on a debt refinancing loan of around USD 925 million in February 2012.
The company owes Rs 91.78 crore, includes both principal and the interest, to 19,964 retail bondholders but is unable to pay because of a restraint placed by the lenders as it is undergoing is a bank-led resolution process. The instruments are maturing on January 3 and 15.
Ambani contested the proceedings and put up a strong legal defence, and will continue to contest the proceedings and seek leave to defend, without any conditions as to making of deposits or payments being imposed, the statement said.
Anmol (27) is already overseeing the financial services business Reliance Capital, since he joined its board in August 2016.
Addressing the shareholders at the AGM, chairman Anil Ambani also said the group's defence businesses will also follow an asset- and capital-light model.
Ambani said factors like rumour mongering and reckless selling in the last six months caused collateral damage in his NBFC
Nippon Life floated open offer to acquire nearly 22.49 percent stake in RNAM for Rs 3,179 crore under a deal with Reliance Capital which is exiting the mutual funds business.
A two-member bench headed by NCLAT Chairman Justice S J Mukhopadhaya, dismissed any contempt plea against Ambani and his officials.
The company aims to monetise its real estate in order to generate cash to pay off its debt obligations following the ratings downgrade of its group companies
PWC has put in its resignation, with effect from June 11, 2019, citing unsatisfactory response to "certain observations" made by it as a part of the ongoing audit for fiscal 2018-19, the two companies said in their respective regulatory filings to stock exchanges.
Ambani pointed out during last 14 months, lenders from all categories had provided zero net additional liquidity or debt to any entity of the Reliance Group
The suits were being heard in the court of city civil and sessions judge P J Tamakuwala.
Alexandre Ziegler, France's ambassador to India, said a global settlement was reached between French authorities and Reliance FLAG in a tax dispute.