State Bank of India is seeking to recover two guarantees furnished by the former billionaire Anil Ambani, which according to a news report are worth more than $158 million.
The state-run lender filed an application with the National Company Law Tribunal to appoint a resolution professional, according to an update on the court’s website. The tycoon, who had offered personal guarantee on the bank’s loans to his Reliance Communications Ltd. and Reliance Infratel Ltd., was given a week to reply on Thursday, according to the Press Trust of India.
The 60-year-old is the younger brother of Mukesh Ambani, the wealthiest man in Asia. Mukesh has bailed his brother out in the past, making a last-minute payment in a case that could have seen Anil imprisoned.
State Bank of India is seeking to recover more than Rs 1,200 ($158 million) under the personal guarantee clause of the bankruptcy law, according to Press Trust of India.
“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.
Debt resolution plans of Reliance Communications and Reliance Infratel were approved by their lenders in March and those are awaiting approval of the NCLT, the spokesman said. Mr Ambani will file suitable replies, he said.