Supreme Court to begin hearing SBI’s plea against Anil Ambani today

A banker said Ambani has objected to the SBI invoking personal guarantees under the Corporate Debtors Regulations, 2019

Indian lenders are keenly watching the outcome of a petition filed by State Bank of India (SBI) in the Supreme Court, which invoked the personal guarantees of Anil Ambani. The SC will hear the petition from Thursday. A banker said Ambani has objected to the SBI invoking personal guarantees under the Corporate Debtors Regulations, 2019. Till November, the IBC only covered Indian companies and not promoters. The new rules are applicable against the personal guarantors given to loans above Rs 1,000 crore or more by promoters.

“As Ambani’s will be the first case where personal guarantees have been invoked and is now in SC, it will decide the fate of 40 other top defaulters who were sent to NCLT since IBC law came into effect in 2017,” said a banker. In its petition to the SC, SBI said several promoters have moved the Delhi High Court after their personal guarantees have been invoked. The fate of dues worth Rs 45,000 crore, including to the Chinese banks, will be decided by the NCLT where the matter is still pending, and the personal guarantee matter will be heard by the top court.

On September 7, the SBI also invoked the personal guarantees of Sanjay Singal, promoter of Bhushan Power & Steel, as the company defaulted to loans worth Rs 48,000 crore. The debt resolution of the company is almost ready in the NCLT, with JSW Steel declared the highest bidder with a Rs 19,700-crore offer. The matter is currently pending in the SC after JSW Steel sought its intervention on not holding the firm liable for any criminal acts of the previous promoter. The SC will come out with its verdict on this issue this month.

$717-mn loan case: China banks will have to move Indian courts against ADAG

Anil Ambani, chairman of the ADA group, can challenge the order by the Commercial Division of the High Court of England

Anil Ambani, chairman of the ADA group, can challenge the order by the Commercial Division of the High Court of England and Wales, London, which said a personal guarantee disputed by Ambani is binding on him, say corporate lawyers.

At the same time, Chinese banks will have to move Indian courts to enforce the order in India, they said. The British court on Friday asked Ambani to pay nearly $717 million to three Chinese banks within 21 days. The banks are pursuing the recovery of funds as part of a loan agreement with Reliance Communications.

The ADA group has said Ambani is seeking legal advice and the UK court order will have no bearing on the operations of its other group companies: Reliance Infrastructure, Reliance Power, and Reliance Capital. Corporate lawyers said Ambani could challenge the UK court order on grounds of “conclusiveness” under Section 13 of the Code of Civil Procedure, 1908.

“Before enforcing a foreign judgment or decree, the party enforcing it must ensure that the foreign judgment or decree passes the tests mentioned in the CPC. If the foreign judgment or decree fails any of these tests, it will not be regarded as conclusive and hence not enforceable in India,” said Rajiv Bansal, Senior Advocate…Read More

YES Bank case: ED summons Anil Ambani, Subhash Chandra and Naresh Goyal

The agency also calls Subhash Chandra, Naresh Goyal, Kapil Wadhawan, and Peter Kerkar in money laundering probe

The Enforcement Directorate (ED) has issued summons to a clutch of borrowers of YES Bank, including Essel group Chairman Subhash Chandra, Jet Airways founder Naresh Goyal, Cox & Kings promoter Peter Kerkar, Dewan Housing Finance promoter Kapil Wadhawan, and a few more in connection with the money laundering probe against YES Bank co-founder Rana Kapoor. Besides, the federal agency has issued fresh summons to Reliance Group Chairman Anil Ambani asking him to appear on Thursday.

Ambani was summoned on Monday for questioning related to the stressed loans that were sanctioned to ADAG group during Kapoor’s tenure. But he has filed adjournment application with the ED seeking more time. An ED official said it was examining all the big borrowers of YES Bank and that is why each of the borrower had been asked to join the probe this week. Sources said ED wanted to deep dive into all the accounts which had defaulted and the loans had turned into bad debts. The agency will record the statement of the management and promoters of all the stressed firms and will make it part of the prosecution complaint, the source said.

Other than the bad debt accounts, the probe agency is verifying the rationale behind Kapoor keeping some of his realty assets on mortgage with some housing finance firms. “These properties that were kept on mortgage were actually the illegal gratification, which Kapoor has received on advancing loans to entities without due diligence and were not in line with the Banking Regulation Act,” an ED official said…

UK High Court to set terms in Chinese banks’ claim against Anil Ambani

Ambani denies providing authority for any such guarantee, resulting in the High Court action in the UK – the jurisdiction agreed to as part of the terms of the loan agreement

The High Court of England and Wales here on Friday will set the terms for the “conditional order” of a payment into court it had granted to three Chinese banks last year against Reliance Communications boss Anil Ambani. The Industrial and Commercial Bank of China Ltd Mumbai Branch, on behalf of itself, China Development Bank and Exim Bank of China, had sought summary judgment against Ambani over an alleged breach of a personal guarantee on a debt refinancing loan of around $925 million in February 2012.

Ambani denies providing authority for any such guarantee, resulting in the High Court action in the UK – the jurisdiction agreed to as part of the terms of the loan agreement. At the last hearing in the case in December last year, Justice David Waksman said he was “very nearly prepared” to grant judgment against Ambani because he found the Reliance Communications (RCom) chief’s evidence “inexplicably incomplete, implausible and highly unlikely”.

“I think it is highly probable that at trial his defence will be shown to be opportunistic and false… I consider that this is a plain case for the making of a conditional order,” Justice Waksman said, as he granted a conditional order in principle to the Chinese banks. The order means the Commercial Division of the High Court will hear arguments this week on Ambani’s financial means and set an appropriate amount as an effective court deposit, pending a full trial in the case…

UK High Court to set terms in Chinese banks’ claim against Anil Ambani

Ambani denies providing authority for any such guarantee, resulting in the High Court action in the UK – the jurisdiction agreed to as part of the terms of the loan agreement

The High Court of England and Wales here on Friday will set the terms for the “conditional order” of a payment into court it had granted to three Chinese banks last year against Reliance Communications boss Anil Ambani. The Industrial and Commercial Bank of China Ltd Mumbai Branch, on behalf of itself, China Development Bank and Exim Bank of China, had sought summary judgment against Ambani over an alleged breach of a personal guarantee on a debt refinancing loan of around $925 million in February 2012.

Ambani denies providing authority for any such guarantee, resulting in the High Court action in the UK – the jurisdiction agreed to as part of the terms of the loan agreement. At the last hearing in the case in December last year, Justice David Waksman said he was “very nearly prepared” to grant judgment against Ambani because he found the Reliance Communications (RCom) chief’s evidence “inexplicably incomplete, implausible and highly unlikely”.

“I think it is highly probable that at trial his defence will be shown to be opportunistic and false… I consider that this is a plain case for the making of a conditional order,” Justice Waksman said, as he granted a conditional order in principle to the Chinese banks. The order means the Commercial Division of the High Court will hear arguments this week on Ambani’s financial means and set an appropriate amount as an effective court deposit, pending a full trial in the case…

Reliance, Bharti Airtel, 2 others bid for 3 Anil Ambani group companies

11 offers submitted for RCom, Reliance Telecom and Reliance Infratel

Four companies, including Mukesh Ambani’s Reliance group and Bharti Airtel, on Monday collectively submitted 11 bids for three Anil Ambani group companies, which are up for sale as going concerns as part of the Insolvency and Bankruptcy Code (IBC) process.

The three companies for sale are Reliance Communications (RCom), Reliance Telecom (which holds the spectrum), and Reliance Infratel (which controls the tower and fibre assets). RCom also owns real estate and enterprise businesses. The bids were opened by the committee of creditors, which held a meeting that continued until late night on Monday in Mumbai. It will meet again on Friday to discuss and possibly finalise the winning bids for the three companies

The value of the financial bids as well as which companies they have bid for, however, could not be ascertained. The two other bidders include Varde Partners and Delhi-based U V Asset Reconstruction Company (UVRCL). The latter had earlier won its sole bid for the Aircel group (which was also under the IBC) for Rs 150 crore. However, it is unclear as to whether UVRCL will eventually bring in a telecom or infrastructure partner to join in later. A Reliance Jio spokesperson did not respond to a query and an e-mail to UVARCL remained unanswered.

Ericsson teaches Anil Ambani and India’s nascent bankruptcy system a lesson

In recovering $80 million from tycoon Anil Ambani, the Swedish company’s lawyers played the nascent bankruptcy system expertly

Anil Ambani’s not going to jail after all, and Ericsson AB got its money. The Swedish company’s lawyers should take a bow. While the future of the Indian tycoon’s shrinking empire remains shrouded in uncertainty, at least questions over his near-term living arrangements got answered on Monday. Ambani thanked his “respected” elder brother, Mukesh, and sister-in-law, Nita, after avoiding a three-month prison term. India’s richest man showed up just in time to help his younger sibling who has, in a little over a decade, lost 99 percent of his $31 billion net worth.

The local unit of Ericsson had accepted a Rs 5.5 billion ($80 million) settlement to keep its petition for Reliance Communications Ltd.’s $7 billion bankruptcy in abeyance. The telecom equipment vendor subsequently won a contempt-of-court order to put Chairman Anil Ambani in jail if the long-delayed payment – which he personally guaranteed – wasn’t received by Tuesday.

When a history of the early years of India’s 2016 bankruptcy code is written, Ericsson’s lawyers will deserve a glowing mention. For an unsecured creditor to walk away with a 48 percent recovery of its claim – while secured lenders wait patiently for RCom to sell its spectrum, redevelop its land assets and pay them something – shows that the Swedish firm played its cards well…

Mukesh Ambani bails out Anil in Ericsson payout case day before SC deadline

RCom cleared the entire dues to Ericsson India to purge the contempt of a Supreme Court order

Company News: Billionaire Mukesh Ambani stepped in to bail out younger brother Anil Ambani by helping him repay Reliance Communications’ (RCom’s) dues to Ericsson. The last-minute rescue spares the younger Ambani a three-month jail term for contempt of court.

RCom on Monday cleared the entire dues to Ericsson India to purge the contempt of a Supreme Court order. The debt-ridden company had already paid Rs 118 crore of the Rs 550-crore dues. In addition, the company had paid around Rs 3 crore in penalties to Ericsson.

“My sincere and heartfelt thanks to my respected elder brother, Mukesh, and Nita for standing by me during these trying times and demonstrating the importance of staying true to our strong family values by extending this timely support,” said Anil Ambani in a media statement. RCom had time until Tuesday to make the payment, failing which Anil Ambani, its chairman, would have had to serve a three-month jail term, according to the court’s order.

“My family and I are grateful we have moved beyond the past, and are deeply grateful and touched with this gesture,” he added. On February 20, the apex court had held Ambani and two others guilty of contempt for wilfully violating its order by not paying Rs 550-crore dues to Ericsson..

SC holds Anil Ambani guilty of contempt; orders RCom to pay Ericsson

If RCom fails to pay Rs 453 cr to Ericsson within four weeks, then Anil Ambani and two directors will face jail term of three months

Companies News: The Supreme Court on Wednesday held Reliance Communication chairman Anil Ambani and two directors guilty of contempt of court on three contempt applications filed by Telecom equipment maker Ericsson against him over not clearing dues of Rs 550 crore. The apex court has asked RCom to pay Rs 453 crore to Ericsson within four weeks, failing which, Anil Ambani, Reliance Telecom chairman Satish Seth and Reliance Infratel chairperson Chhaya Virani would face a three-month jail term.

The court also imposed a fine of Rs 1 crore each on them, which has to be deposited within a month. If they fail to furnish the amount, the three will be awarded a month’s jail-term.A bench comprising of Justices RF Nariman and Vineet Saran said if the contemnor failed to make the payments within the specified period, they will undergo a jail term of three months.

Also Read: How Anil Ambani could arrange funds needed to comply with the SC order

It directed that Rs 118 crore already deposited by Reliance Group in the apex court’s registry be disbursed to Ericsson. “From the undertakings given by Reliance Group’s top brass, it appears they have wilfully not paid the amount to Ericsson despite orders,” it said.

Earlier, in his defence, Ambani told the top court that with the failure of its assets sale deal with elder brother Mukesh Ambani-led Reliance Jio his company has entered insolvency proceedings and is not in control of the funds. Reliance Communication (RCom) had told the court they had tried to move “heaven and earth” to ensure Ericsson gets its due but was unable to do so due to the failure of assets sale deal with Jio.

Why Modi govt bought only 36 Rafale jets instead of 126, asks P Chidambaram

The government has compromised national security, said P Chidambaram

Politics News: Senior Congress leader P Chidambaram on Friday accused the government of compromising national security and asked why did it buy only 36 Rafale fighter jets instead of the 126 required by the Air Force. His comments come in the wake of fresh revelations on the Rafale deal in a media report which claimed that Prime Minister Narendra Modi’s decision to buy 36 aircraft instead of the 126 asked for by the Indian Air Force pushed the price of each jet up by 41.42 per cent.

“In the light of new facts and revelations in THE HINDU, the question gains greater urgency: why did the government buy only 36 Rafale aircraft instead of 126 aircraft required by the Air Force?,” Chidambaram asked in a tweet. “The Government has compromised national security by denying to the Air Force the 7 squadrons (126 aircraft) that it desperately needs,” he said.

Congress leader Jyotiraditya Scindia also took to Twitter to demand answers from Modi on the increased cost of aircraft. “The PM’s unilateral decision to buy 36 Rafales resulted in a price escalation of 41.42% per jet. When will the prime minister answer?” he asked.

Contain By Business Standard

Mukesh Ambani’s Jio gets RCom into trouble; DoT rejects spectrum deal

Mukesh Ambani’s Reliance Jio Infocomm had agreed to buy spectrum, towers and other wireless infrastructure of his younger brother

BS: In a major blow for Anil Ambani’s Reliance Communication, the department of telecommunication (DoT) on Tuesday refused to give a clearance to RCom-Reliance Jio Infocomm deal. As part of debt reduction efforts, Anil Ambani-led RCom had, in December 2017, signed a Rs 250-billion deal with elder brother Mukesh Ambani‘s Reliance Jio. The deal included the sale of assets mortgaged with different banks to avoid insolvency proceedings. The company expected to raise Rs 180 billion from sales of its wireless assets to RJio and real estate assets to Canada’s Brookfield, and pare some of its Rs 460-billion debt.

Earlier, the apex court had asked RCom to furnish a corporate guarantee of Rs 14 billion within 2 days, following which DoT had to give it a No Objection Certificate (NOC) for the RCom-RJio spectrum sale deal within 7 days. All went as planned. RCom furnished the guarantee amount and the DoT agreed to give RCom the green signal.

Big brother’s letter gets Anil into trouble

On Friday, DoT had told the Supreme Court that it was ready to provide the company a NOC for spectrum and asset sale to Jio. However, by Tuesday, the DoT reversed its stand following Jio’s letter wherein it sought assurances from the government that it won’t be held liable for RCom’s past dues related to airwaves, reports Economic Times.

In a letter to the DoT, RJio stated that although RCom has offered a corporate guarantee of Rs 14 billion towards settling its dues, the licence conditions stipulate that it should also give a bank guarantee.Jio’s conditions, mentioned in the letter to the government, are not in accordance with spectrum trading norms, according to which, the buyer is liable for dues that haven’t been recovered from the seller.

Keep Reading: Business Standard 

GST to bring economic freedom, imagination to India: Anil Ambani

Stage is set for another 'historic tryst with destiny', said the industrialist in the Parliament

 

Industrialist Anil Ambani on Thursday termed the Goods and Services Tax (GST), being rolled out from July 1, as India's "economic freedom" and said it would make the country the biggest free and democratic market in the history of humankind.

Speaking here at a mutual fund industry event, the Reliance Group chairman said there are many ways of counting the benefits of GST and as many of counting its costs.

"But there is just one way of describing its true promise. GST is not just another piece of reform or transform, however significant. GST is the liberation of our economic imagination. It is our economic freedom," he said.

Ambani said there are moments in the life of a nation when history is made not in small steps of incremental gain but in giant leaps of ambition.| economy news

"We, the people of India, are privileged to bear witness to one such moment in time," he said, referring to the proposed rollout of GST on midnight of June 30.

"Seventy years ago, at the stroke of the midnight hour, our first Prime Minister, Jawaharlal Nehru, spoke movingly in the Central Hall of Parliament about India's tryst with destiny.

"At the same mid-night hour tomorrow, as our honourable Prime Minister Narendra Modi rises to address a waiting nation from the same august Central Hall, India will be set on course for another historic tryst with destiny," he said.

Ambani said the free market is perhaps the greatest force for economic good in the human history of all earthly inventions.|economy policy

He said the free market is a force for generating wealth and transforming lives and the real promise of GST is the promise of economic liberation.

With the promise of 'One Nation, One Tax, One Market', it would create a borderless world of 1.3 billion people -- producers and consumers engaged in a seamless exchange of goods and services, skill sets and capital, labour and ideas.

Ambani said the world has seen nothing like this before and in less than 48 hours, India will emerge as the biggest free and democratic market in the history of humankind.

"In tandem with its policy precursor -- demonetisation -- GST will forever change the ground rules of doing any kind of trade, commerce or business in India.

"The leadership advantage is backed by strong macro- economic stability," he said while adding that the economy has moved from low inflation to high growth, from fiscal rectitude to prudential current account management, and fom one of the highest savings rates in the world to one of the fastest rates of economic growth.

He said that from insolvency code to NPA resolution, the present government has undertaken a fundamental overhaul of India's financial infrastructure while consolidating and strengthening the banking sector.

"But the greatest achievement of the government lies in the area of financial inclusion, thus setting in motion a growth dynamic for financial intermediaries which is unprecedented in its scope and size," he added.