The court noted allegations of irregularities and the departure of PwC as an auditor of Reliance Capital. PwC had resigned as an auditor in June of last year and said it did not receive satisfactory answers to its questions, but the company had said nothing was wrong.
“Mr. Howe QC suggested that, even if there was some truth in these matters, this is all on the side of the companies; it does not necessarily have to reflect on Mr. Ambani. In my opinion, that is hopeless, “said Justice Waksman in the case between Industrial and Commercial Bank of China, Mumbai Branch and Anil Dhirubhai Ambani. The recent order has now been uploaded.
It said that Ambani was actively involved in running a business.
“It is quite clear from all the evidence that we have seen that Mr. Ambani is not a form of titular president who really has nothing to do with these companies. He is extensively and actively involved with them. To suggest that if there were serious shortcomings in the corporate governance of the companies, he was not aware of it, is completely unrealistic in my opinion. ”
Ambani’s lawyers had told the British court last week that the business magnate was unable to pay rights worth $ 680 million to top Chinese banks, since his assets are zero.
The Anil Ambani group did not respond to ET’s questions.
The court did not believe in Ambani’s claim that his family would not help him. “I do not accept that the true position now is that all other members of the family have pulled the hatches down firmly and irrevocably so that there is no financing available from them in case money had to be paid in court,” the judge said .
Ambani had told the court about the misery of the telecom industry, but the judge said this was not the issue in court.
“What a problem is is what he says it results.
In the first place that he therefore has a negative equity and secondly that he therefore does not hold any meaningful assets that can be liquidated … “, the order said. Ambani said that even the money that was paid to Ericsson was not a gift.
“He said the payment was actually made by Reliance Realty Limited on behalf of RCom, and that company had raised the money by renting part of the property it owned to an associated company, Reliance Industries Limited,” said.
The court mentioned a public statement that said: “My sincere and sincere thanks to my respected elder brother, Mukesh and Nita, for assisting during these difficult times and demonstrating the importance of staying true to our strong family values through these expand timely support. I and my family are grateful that we have gone beyond the past and have been deeply touched by this gesture. ”
The order took note of Anil Ambani’s reply that the statement meant only the gratitude he showed to his older brother and his wife.
“It is not clear that the press release that I have already quoted is so limited,” the order said. Anil Ambani had told the court about his personal income.
“… in 2018-2019 his income was the equivalent of £ 12.3 million. A very modest share, around £ 600,000, came from a company called Reliance Infrastructure Limited, for what are called professional costs; but the rest came largely from the sale of shares he held in his brother Mukesh’s company, Reliance Industries Limited, which were sold on February 6, 2019. “Ambani also shared his” living expenses “with the court.
On the date of this testimony, which is January of this year, he said his earnings as compensation this year will be around £ 550,000, of which Ambani said “will be used for his daily living expenses.” For these living expenses, they were listed elsewhere in the property statement as being close to $ 187,000 a year.