The State Bank of India (SBI) has moved the National Company Law Tribunal (NCLT) to recover more than Rs 12 billion from Anil Ambani under the personal guarantee clause of the bankruptcy law. According to SBI, Ambani had personally guaranteed loans taken by Reliance Communications (RCOM).
RCOM is currently undergoing insolvency proceedings, which the state-owned lender is trying to recover wherein RCOM owes nearly Rs 50 billion to SBI.
SBI moved the NCLT under Section 97(3) of Insolvency and Bankruptcy Code (IBC), seeking its intervention to direct the insolvency board to nominate a resolution professional (RP).
To this end, on June 11, 2020, the insolvency court asked the RP to assess and submit a report on the assets owned by Ambani for which the NCLT bench has given them a week.
The SBI board had approved a resolution plan for RCOM in March 2020 that envisaged lenders recovering around Rs 230 billion of their money, entailing a haircut of nearly 50 per cent.