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home gossip Former Indian Billionaire Anil Ambani Is Taken To Court By Three Chinese Banks Over $680 Million Unpaid Loan

Former Indian Billionaire Anil Ambani Is Taken To Court By Three Chinese Banks Over $680 Million Unpaid Loan

Published Tue Nov 19 2019 By Amy
Former Indian Billionaire Anil Ambani Is Taken To Court By Three Chinese Banks Over $680 Million Unpaid Loan

When rich people and celebrities get sued for money, we find it very hard to believe, don’t we?  

60-year-old multi-millionaire Indian businessman Anil Ambani was dragged to court after three Chinese banks sued him for $680 million unpaid loans. Well, this isn’t the first time Ambani got into trouble. 

Read down below to find out more.

How Many Loans Was Taken By Anil Ambani? 

In 2012, The Industrial and Commercial Bank of China, China Development Bank, and the Export-Import Bank of China provided $925.2 million loans to Anil Ambani’s firm, Reliance Communications.    

Indian businessman Anil Ambani is in debt of $680 millionImage Source: Times of India
Indian businessman Anil Ambani is in debt of $680 million

Image Source: Times of India

The condition that he provided a personal guarantee as per ICBC’s lawyer, Bankim Thanki. Some amount from the loan was repaid by the wireless carrier; however, in February 2017, it defaulted on its payment obligations. 

As per sources, Hasit Shukla, Reliance’s commercial & treasury head, signed a personal guarantee on Anil’s behalf by a power of attorney seven years ago when the loan was set up.

The Indian business tycoon says that while he agreed to give a non-binding personal comfort letter, but he never gave a guarantee tied to his own assets.

In February 2017, the three banks sued Anil Ambani for a balance of $680 million. The Industrial & Commercial Bank of China is asking the presiding judge to order Anil to pay up the loan.  

In their press statement, they said: “This is a straightforward debt claim to recover outstanding loans made to RCOM in good faith, and secured by a personal guarantee given by Mr. Anil Ambani.”

The multi-millionaire is facing a hard time as the loan is twice more than his current net worth of $300 million. The Ambani family is yet to comment on the matter.  

Well, Ambani is not new to money trouble. India’s Supreme Court warned anil that he could be facing jail for over 5.5 billion rupees he owed. Ambani was given a month to find the money. However, his billionaire brother Mukesh Ambani ended up paying off the loan himself.   

The Ambani Brothers: Mukesh Ambani (left) & Anil AmbaniImage Source: Business World
The Ambani Brothers: Mukesh Ambani (left) & Anil Ambani

Image Source: Business World

As per India Today, Anil Ambani resigned as the director of Reliance Communications on 16th November 2019. 

How Rich Are The Ambani Brothers?

According to Celebrity Net Worth, Anil Ambani is currently worth $300 million. On the other hand, Forbes estimated his net worth at around $1.7 billion on 3rd April 2019.

The 60-year-old businessman was one of the wealthiest people in the world, with a net worth of $42 billion a decade ago. 

Ambani's net worth dropped from billions to million within a decadeImage Source: Times of India
Ambani's net worth dropped from billions to million within a decade

Image Source: Times of India

Anil amassed his wealth from the Reliance Group, also known as Reliance ADA Group, created in July 2006. Ambani leads 75% stake in several corporations, including Reliance Infrastructure, Reliance Capital, Reliance Power, and Reliance Communications. 

Whereas, his older brother Mukesh Ambani is currently worth $56.3 billion. According to Forbes, Mukesh Ambani is listed as the richest man in Asia and the 13th richest person in the world.