The National Company Law Tribunal (NCLT) has accepted a petition from the State Bank of India (SBI) and commenced personal insolvency resolution proceedings against Anil Ambani. This action is in connection with Ambani serving as a personal guarantor for loans provided to Reliance Communications (RCOM) and Reliance Infratel Ltd (RITL).
A bench at the NCLT, comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, approved the SBI’s request under Section 95 of the Insolvency and Bankruptcy Code (IBC). The tribunal has also imposed a moratorium on all debts of the personal guarantor and instructed Resolution Professional Prashant Jain to call for claims from creditors.
In response to the ruling, a representative for Ambani mentioned that they would review the order with their legal team and challenge it using appropriate legal measures. The SBI had sought insolvency proceedings against Ambani for an alleged default amounting to Rs 853.25 crore related to personal guarantees provided for credit facilities to RCOM and RITL.
Ambani had contested the insolvency move during the proceedings, arguing that the guarantee was no longer valid after the approval of the resolution plan for RCOM. However, the NCLT dismissed these arguments, stating that the debt and default persisted despite Ambani’s claims.
