Chinese banks face increased litigation to recover Anil Ambani dues

The Chinese banks, which are planning to move Indian courts to enforce a $717 million payment ordered by UK courts from Anil Ambani, are facing an additional legal hurdle, with State Bank of India moving the National Company Law Tribunal (NCLT) Delhi bench to enforce personal guarantees of Ambani.

SBI’s move comes after almost two years of Reliance Communications was first sent to the NCLT (National Company Law Tribunal) for recovery of dues by Indian creditors.

Corporate lawyers said the move by the latest SBI will delay recovery of dued by the Chinese banks which won the UK court order in May this year. The Chinese banks had invoked personal guarantees given by Ambani to avail of foreign loans by RCom but Ambani had refused to pay the money arguing he never gave any personal guarantees.