Monday, 30th October 2017

E- paper

UK court asks Anil to pay $717m

Funds owed to 3 Chinese banks as part of a loan agreement

By PTI in London
  • Published 23.05.20, 6:41 AM
  • Updated 23.05.20, 6:41 AM
  • a min read
Anil Ambani (Wikipedia)

A UK court on Friday directed Reliance Group chairman Anil Ambani to pay nearly $717 million to three Chinese banks pursuing the recovery of funds owed to them as part of a loan agreement within 21 days.

At a remotely held hearing, in line with procedures in place for the Covid-19 pandemic, Justice Nigel Teare ruled at the commercial division of the High Court of England and Wales in London that a personal guarantee disputed by Ambani is binding on him.

“It is declared that the guarantee is binding on the defendant (Ambani),” Justice Teare’s order notes.

“It is declared that… the sum payable by the defendant to the claimant (banks) pursuant to the guarantee is $716,917,681.51,” it reads.

A statement related to the judgment has been sought from the Reliance group.

The banks — Industrial and Commercial Bank of China Ltd Mumbai Branch, China Development Bank and Exim Bank of China — had taken their claim for a summary judgment to the UK high court and in February were granted a conditional order. A deposit had to be paid in court pending a full trial in the case.

Judge David Waksman, presiding over that hearing on February 7, had set a six-week timeline for the payment of $100 million pending a full trial in 2021.

The court order this week vacates a trial date previously set for March 18 next year and also issues a court cost order in favour of the banks, adding a further £750,000 pounds to the overall amount owed.