NCLT initiates bankruptcy proceedings against Anil Ambani

The NCLT has directed to initiate insolvency proceedings against Reliance Communications Chairman Anil Ambani to recover Rs 1,200 crore under the personal guarantee clause of the bankruptcy law.

Anil Ambani had given a personal guarantee to the loans given by State Bank of India (SBI) to Reliance Communications and Reliance Infratel in August 2016.

The National Company Law Tribunal (NCLT) Mumbai in its order on August 20 said both RCom and RITL committed default in repayment in and around January 2017.

The accounts were retrospectively declared as non-performing account (NPA) with effect from August 26, 2016, even before loan agreements had been entered into.