Daijiworld Media Network - London (MS)

London, Feb 8: Anil Ambani, younger brother of richest businessman of India Mukesh Ambani, has pleaded poverty in his dispute with three Chinese banks to whom he owes $680 million which was a loan given by these banks to him.

Anil Ambani was ordered by a UK court on Friday, February 7 to pay an amount of 100 million dollars within six weeks to the three Chinese banks as a part of the recovery of 680 million dollars.

The judge did not accept the argument put forth by the attorney representing Anil Ambani that Anil's net worth zero and his family would not help him in this matter. According to a court filing, Ambani said, "The value of my investments has collapsed. I do not hold any worthy assets which can be liquidated for the purpose of these proceedings. The current value of my holding is down to 82.4 million dollars and my new worth is zero after taking into account my liabilities."

Anil Ambani

The complainant in the case, the three Chinese banks, argued that they had paid an amount of 925 million dollars to RCom in 2012 and under the agreement he personally guaranteed the debt. A representative of Anil Ambani disclosed to reliable sources that they are reviewing the orders of the UK Court and would take further legal advice. As the order pertains to the personal liability of Anil Ambani, it will have no effect on the operations of Reliance Capital, Reliance Power and Reliance Infrastructure.

Anil Ambani, in his defence, further agreed to give a non-binding 'Personal Comfort Letter' and said that he never promised the banks any guarantee linked to his personal assets.

Anil Ambani's fortunes have drastically fallen in the recent years which made him to lose his billionaire status. In addition, his group company Reliance Communications filed for bankruptcy last year. The Chinese banks have asked the court to pressurize Ambani to make the full amount he owes to them or the amount, which the court feels is appropriate. However, it is learnt that Ambani has said that he is not in a position to make any payments and forcing him to do so will hinder his ability to defend himself in the case.

The attorney representing the China Development Bank, The Export Import Bank of China and Industrial and Commercial Bank of China, the complainants in this case, has said in his filing to the court that Anil Ambani is trying to evade his financial obligations.

It might be recalled that Anil Ambani was held up by the Supreme Court in another legal battle in which threatened to send him to prison if he did not pay up Rs 550 crore to the Indian unit of Ericsson. Anil was given a month's time and fortunately Mukesh Ambani stepped in and paid the amount on Anil's behalf.