Anil Ambani, owner of Reliance ADAG Group, has been sued by three Chinese banks for Rs 48.53 billion (680 million Dollar). These banks have said that Anil Ambani’s closed company Reliance Communication had taken a loan of Rs 66.03 billion ($ 925.5 million) in 2012, which was defaulted in 2017.
These banks filed suit
Banks that have sued R-Com include Industrial and Commercial Bank of China, China Development Bank and Export-Import Bank of China. The trial has been conducted in a London court. According to a Swarnim Times report, the three banks had asked Anil Ambani to give a personal guarantee before giving the loan, but this did not happen.
Anil Ambani’s difficulties are not swiping away
In the business world, till a decade ago, Anil Ambani and Reliance were on vertex and most sought after business magnet. The total debt of Reliance Group in March 2018 was Rs 1.7 lakh crore. Recently, Anil Ambani had said that in the last few months, his group has paid a liability of Rs 35 thousand crore.
Ban on selling insurance policy
The Insurance Regulatory and Development Authority of India (IRDA) has banned Reliance Health Insurance Corporation Limited (RHICL) from selling new policies. It will continue to serve only their old customers. Anil Ambani-owned Reliance Group company RHICL is facing financial crisis.
IRDA said in a statement that the company’s reserve fund has come down to alarming levels. Through this fund, you get money on claiming the policy. RHICL commenced operations in October 2018. The situation deteriorated later this year and the company lagged behind the Reserve Fund.
In the end of August, IRDA issued notice to the company and asked to provide necessary funds for this fund in a month. Despite repeated warnings from IRDA, the company did not improve the level of reserve capital.
Planned IPO plan
Reliance General Insurance had planned to sell Rs 200 crore worth of new shares through an initial public offering (IPO). But now Reliance General Insurance has withdrawn the proposed IPO plan.
SEBI got IPO draft on February 8
Along with this, 79,489,821 shares of Reliance Capital were to be sold through Offer for Sale. Market regulator Sebi received the draft red herring prospectus of Reliance General Insurance’s proposed IPO on February 8 through Motilal Oswal Investment Advisors, lead manager of the issue.
But now, according to Sebi, the draft offer documents of IPO have been withdrawn by lead manager Motilal Oswal Investment Advisors.
The reason for withdrawal of documents was not disclosed
For this, Motilal Oswal Investment Advisors emailed on 24 October 2019. Let us tell you that Sebi has not yet disclosed the reason for withdrawing the offer documents. Significantly, in the year 2017, Reliance General Insurance approached SEBI with the documents of its IPO. Subsequently, it was also approved by SEBI in November 2017.