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A legal setback for Anil Ambani intensified on Thursday after the National Company Law Tribunal (NCLT), Mumbai, admitted a plea filed by the State Bank of India (SBI) seeking initiation of personal insolvency proceedings against the industrialist.
The order paves the way for the commencement of personal insolvency proceedings and enables the appointment of a Resolution Professional, who can begin the process of taking charge of Anil Ambani's personal assets in accordance with the Insolvency and Bankruptcy Code. A detailed order from the tribunal is still awaited.
The case stems from SBI's attempt to recover around ₹1,200 crore linked to personal guarantees allegedly issued by him for loans extended to Reliance Communications (RCom) and Reliance Infratel.
Following the tribunal's decision, Anil Ambani confirmed that he would challenge the order before the National Company Law Appellate Tribunal (NCLAT).
In a statement issued on his behalf, a spokesperson said the NCLT order relates to a "disputed personal guarantee allegedly extended by Mr. Ambani to the State Bank of India in 2016" and noted that the matter dates back a decade.
The statement further argued that the guarantee was linked to a facility availed by Reliance Communications "for the repayment of its borrowings from Chinese lenders" and asserted that Ambani "derived no personal benefit from the said funds."
According to the spokesperson, the order was passed in relation to events that pre-date the introduction of India's personal insolvency framework.
"The Order, once available, will be reviewed by Mr. Ambani's legal team and challenged through appropriate legal remedies, as advised," the statement said.
Also Read: Bombay HC stays action against Anil Ambani in ₹420 crore Black Money Act case
Ambani remains "confident of vindicating his position before the appropriate forums", the spokesperson added.
The admission of SBI's petition marks a significant procedural development in the long-running dispute surrounding guarantees linked to the debt obligations of Reliance Communications and Reliance Infratel.
The next phase of the case is expected to shift to the appellate forum, with Ambani preparing to contest the NCLT's decision before the NCLAT.
The order paves the way for the commencement of personal insolvency proceedings and enables the appointment of a Resolution Professional, who can begin the process of taking charge of Anil Ambani's personal assets in accordance with the Insolvency and Bankruptcy Code. A detailed order from the tribunal is still awaited.
The case stems from SBI's attempt to recover around ₹1,200 crore linked to personal guarantees allegedly issued by him for loans extended to Reliance Communications (RCom) and Reliance Infratel.
Following the tribunal's decision, Anil Ambani confirmed that he would challenge the order before the National Company Law Appellate Tribunal (NCLAT).
In a statement issued on his behalf, a spokesperson said the NCLT order relates to a "disputed personal guarantee allegedly extended by Mr. Ambani to the State Bank of India in 2016" and noted that the matter dates back a decade.
The statement further argued that the guarantee was linked to a facility availed by Reliance Communications "for the repayment of its borrowings from Chinese lenders" and asserted that Ambani "derived no personal benefit from the said funds."
According to the spokesperson, the order was passed in relation to events that pre-date the introduction of India's personal insolvency framework.
"The Order, once available, will be reviewed by Mr. Ambani's legal team and challenged through appropriate legal remedies, as advised," the statement said.
Also Read: Bombay HC stays action against Anil Ambani in ₹420 crore Black Money Act case
Ambani remains "confident of vindicating his position before the appropriate forums", the spokesperson added.
The admission of SBI's petition marks a significant procedural development in the long-running dispute surrounding guarantees linked to the debt obligations of Reliance Communications and Reliance Infratel.
The next phase of the case is expected to shift to the appellate forum, with Ambani preparing to contest the NCLT's decision before the NCLAT.
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