The UK High Court has dismissed summary judgment application filed by China-based banks claiming $680 million from Reliance Communications’ (RCOM) Chairman, Anil Ambani.
China-based banks – China Development Bank, Mumbai branch of Industrial and Commercial Bank of China and EXIM Bank of China had demanded the amount in lieu of corporate loans provided to RCOM worth $925.3 million.
The banks had extended the loans to RCOM in February 2012 on a condition that Ambani provides personal guarantees. RCOM repaid a portion of the loan but defaulted on its payment obligations in February 2017.
Meanwhile, as per Ambani, he had no knowledge of any guarantee to be signed on his behalf by anyone and was unaware of it until he received the letters from the bank in 2017.
However, the court stated that Anil Ambani’s defence is inexplicably incomplete and will be shown to be opportunistic and false at trial.