Former billionaire Anil Ambani rejected a UK judge's comment that he lived a "lavish lifestyle" as he faced questions about his assets from lawyers acting for three Chinese banks. Ambani while giving evidence via videolink over a dispute stemming from a defaulted loan. Ambai, who has previously said his net worth is "zero," was questioned about his spending and his finances, including more than $100 million in family loans. "I think I must put it respectfully in perspective," Ambani said. "My needs are not vast and my lifestyle is very disciplined. Any suggestion of a lavish lifestyle past, present and future is completely speculative," he said.
The three Chinese banks are aiming to target Anil Ambani's global assets as he owes them more than $717 million as well as significant legal costs. The banks have decided to seek ‘commence enforcement action’ against him following his cross examination in the British high court. Ambani was ordered by a UK court on May 22 this year to pay $716 million, including interest and £750,000 legal costs to the Industrial and Commercial Bank of China, Export-Import Bank of China and China Development Bank. By June 29, the amount he owed, after taking accrued interest into account, had risen to $717.7 million.
Bankim Thanki, representing the banks, told the commercial court of the UK high court that they had not received a penny from Ambani for the debt or legal fees. After Friday’s hearing, the banks issued a statement, saying they intend to pursue enforcement action and all available remedies against Ambani. “The banks will use the information from the cross-examination to pursue all available legal avenues to protect their rights and recover the outstanding loans owed to them,” the statement said.
The dispute arose over a $925 million loan the banks had given to Reliance Communications (RCom) in 2012. RCom initially paid the loan instalments and then started defaulting. The banks claim Ambani, former chairman of RCom, provided a personal guarantee for the loan up to the value of $925m, though he denies the guarantee was binding on him. RCom is currently undergoing insolvency proceedings in India. It is expected, therefore, that the banks will now start taking enforcement action against his assets outside of India based on his disclosures.
