Had to sell jewelry to pay legal costs: Anil Ambani
Anil Ambani, once the world’s sixth-richest man, said in a London court on Friday that he sold his jewelry to cover legal costs and that his expenses will be borne by his family, according to reports.
The ex-billionaire made these submissions to a higher court in London, in relation to the repayment of loans to three Chinese banks.
In May they told him to return more than $ 700 million.
The business mogul obtained a loan from the Industrial and Commercial Bank of China Ltd (Mumbai branch), the China Development Bank and the Exim Bank of China for Reliance Communications in 2012.
He gave a personal guarantee, but years later the company failed and RCom is now in the middle of insolvency proceedings.
Thereafter, the moneylenders approached the London court seeking warrants for Ambani.
On May 22, 2020, Judge Nigel of the Superior Court Commercial Division ordered Ambani to honor the deal and return the money.
The deadline was June 12.
When you couldn’t pay, the court asked you to list your assets worth more than $ 100,000; bank statements and the list of credit card transactions in the last 24 months.
Now, in Friday proceedings, Ambani was questioned about his responsibilities, his lavish lifestyle and the help he received from his brother, business mogul Mukesh Ambani.
He had requested that the hearing be held in private, which the judge assumed was because Ambani wanted to avoid embarrassment.
The 61-year-old claimed that his net worth was negative, a claim countered by Chinese banks.
Bankim Thanki, the legal representative for the three Chinese banks, said the information Ambani provided about his wealth was incomplete.
The attorney said Ambani used credit cards at Harrods, Dolce & Gabbana and Harvey Nichols.
However, Ambani clarified that the card was stolen by his mother, Kokilaben Ambani. She did not provide a credit card statement because she was not using one, she told the court.
Thanki asked Ambani about the yacht he gave to his wife, Tina Ambani. The businessman said the yacht was idle for many years, adding that he lived a humble lifestyle.
“I don’t drink … I don’t smoke. Any suggestion of a luxurious lifestyle is the creation of the media,” he said.
When asked about the works of art he owns, Ambani said he only owns one.
Ambani was also questioned about the $ 66 million loan he received from his mother. He maintained that he was unaware of the terms of the loan, but claimed that it was not a “gift.”
It also came to the notice of the court that he took a loan, in the amount of millions, from his son Anmol.
Thanki asked if Ambani moved assets in Tina’s name to deliberately mislead creditors.
When asked to answer “yes or no” to the question about him living rent-free at Mukesh Ambani’s property, Ambani answered yes.
Thanki said Ambani’s elaborate legal team suggests he has other sources of income, but the latter denied it. He is represented by prominent attorney Harish Salve.
Ambani reiterated that he wanted to help the court and that he was not withholding information.
