Categories: Business

NCLT initiates bankruptcy proceedings against Anil Ambani | NCLT starts insolvency process against Anil Ambani, Rs 1,200 crore liability


NCLT initiates bankruptcy proceedings against Anil Ambani

new Delhi. The National Company Law Tribunal (NCLT) has directed the insolvency process against Anil Ambani, chairman of Reliance Communications, to recover Rs 1,200 crore under the Personal Guarantee Section of the Insolvency Act. In August 2016, Anil Ambani had personally guaranteed loans given by State Bank of India (SBI) to Reliance Communications and Reliance Infratel.

The Mumbai bench of NCLT, in its order dated 20 August, said that both Reliance Communications and Reliance Infratel failed to repay the loan installments in and around January 2017. Both loan accounts were classified as Non Performing Accounts (NPAs) with effect from 26 August 2016 from the old date.

The NCLT ordered the appointment of a solution professional and asked SBI to take necessary action. Meanwhile, a spokesperson of Anil Ambani said that Ambani is currently reviewing the order dated 20 August 2020 of the Mumbai bench of NCLT. He is consulting to file a petition with the National Company Law Appellate Tribunal (NCLAT) against the order to be appointed as a solution professional.

The spokesperson said that NCLT refused State Bank's request by State Bank of Ambani to ban transactions in their properties. The spokesperson said that the order of NCLT will not have any impact on the operations of Reliance Infrastructure Limited, Reliance Power Limited and Reliance Capital Limited.

This post was published on August 22, 2020 12:31 am

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