NCLT (National Company Law Tribunal) Mumbai has given a green signal to initiation of bankruptcy proceedings against Chairman of Reliance Communications Anil Ambani over the company’s over Rs 1200 crore personal guarantee to State Bank of India(SBI).
The case is related to State Bank giving credit facilities to Reliance Communications (R.Comm)and RTIL (Reliance Telecom Infrastructure Ltd), companies under the Reliance ADAG group headed by Anil Ambani in August 2016.
NCLT Mumbai has observed that, The RCOM and RITL committed default in repayment in and around January 2017. The accounts -were with consideration of past events or situations- declared as Non-Performing Account (NPA) with effect from 26.08.2016 i.e. even before loan agreements had been entered into.
“Such retrospective declaration seems rather incongruous, akin to the adage ‘putting the cart before the horse’. While debt and default has remained undisputed, the incongruity of declaration of NPA, has not been raised and contested by the Respondent. Besides, reappraisal of the declaration of the NPA by this Authority would not fall within the ambit of the provisions of the Code, under which the instant Applications have been made,” states the order further.
