Categories: Business

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

Photo: DECCAN HERALD

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

Content Team

Recent Posts

Ban on gaming apps hopes for opportunity for domestic sector

Photo: MEDIATEK online gaming new Delhi. The government has banned 118 apps keeping in mind the security of the country.…

India august gold imports double to hit 8 months peak says source

Photo: TIMESOFINDIA gold import at 8 months high new Delhi. The economy is now looking forward to a gradual recovery.…

Coal India Q1 profit plunges 55 percent YoY

Photo: GOOGLE Coal India Q1 result new Delhi. Coal India's profit fell 55 per cent in the first quarter to…