Former billionaire Anil Ambani is facing financial crisis as the State Bank of India is seeking to recover two guarantees furnished by him which are worth more than $158 million. According to an update on the court’s website, the state-run lender filed an application with the National Company Law Tribunal to appoint a resolution professional.
As per sources, the tycoon was given a week to reply as he offered personal guarantee on the bank’s loans to his Reliance Communications Ltd. and Reliance Infratel Ltd.
In the past, his younger brother Mukesh Ambani had bailed him out, making a last-minute payment in a case that could have seen Anil imprisoned. According to the Press Trust of India, the State Bank of India is seeking to recover more than Rs 1,200 crore under the personal guarantee clause of the bankruptcy law.
“The matter relates to a corporate loan availed by” Reliance Communications and Reliance Infratel and is not a personal loan of Mr Ambani, a spokesman for the former billionaire said.