Reliance Group Chairman Anil Ambani has said that he had signed a power of attorney (PoA) only to execute a non-binding letter of comfort with three Chinese banks. On a recent case filed by State Bank of India, Ambani stated this was for a loan availed by Reliance Communications (RCom) and Reliance Infratel (RITL) in 2016 to repay debts.

Ambani was offering clarification on a May 22 UK High Court order, which asked him to pay $717 million in 21 days after the three Chinese banks filed a case to recover dues.

The claimants – Industrial and Commercial Bank of China Ltd, Mumbai Branch, China Development Bank and Exim Bank of China — had earlier filed a case seeking to recover $680 million owed to them as part of a loan agreement.

The guarantee on the basis of which the claim was made was admittedly not signed by him, Ambani told shareholders of Reliance Power, at its 26th Annual General Meeting today.

As regards the claim of the Chinese banks, the loan for which the legal proceedings have been initiated was not for any personal borrowing but for a corporate loan which was availed by RCom. The loan was availed in the normal course of business eight years ago (in 2012) from a consortium of three Chinese banks for global refinancing, he said.

Ambani also said his defence has been shut out by the UK court on his inability to personally deposit a sum of $100 million. He now plans to avail all available legal remedies in India to protect his interest, he added.

Talking about SBI moving a petition, Ambani emphasised that this also does not relate to any personal borrowing but arose out of a guarantee given for a loan availed by RCom and RITL in 2016 to repay the debts of the Chinese and certain other Indian banks.

Ambani said he is defending himself against these claims and firmly believes that upon the resolution of RCom and RITL’s debt as per their resolution plans filed before National Company Law Tribunal (NCLT), a significant proportion, if not the whole, of the debts will stand discharged and all these matters satisfactorily resolved.

On June 12, SBI had moved a petition before NCLT seeking to recover loans $158 million provided as loans to the Anil Ambani-led companies, following a personal guarantee given by the businessman.

 

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