SBI has claimed dues of around ₹1,200 crore from Ambani.
The case stems from credit facilities granted by SBI to Reliance Communications and Reliance Infratel in 2016. Reliance Communications had approached SBI’s project finance strategic business unit for credit facilities of ₹565 crore for repayment of existing debt. Reliance Infratel, a sister concern of Reliance Communications, had similarly sought credit facilities of ₹635 crore.
SBI sanctioned the loans under rupee loan facility agreements dated August 29, 2016, later amended and restated on September 8, 2016. Ambani executed personal guarantee deeds in favour of SBI on September 23, 2016 for the credit facilities granted to both companies.
Reliance Communications and Reliance Infratel defaulted on repayment around January 2017. Their accounts were later retrospectively classified as non-performing assets with effect from August 26, 2016.
In 2018, the NCLT admitted insolvency petitions filed by Ericsson India Private Limited against Reliance Communications and Reliance Infratel.
Following the default, SBI invoked Ambani’s personal guarantee on January 31, 2018. The bank later issued a demand notice to Ambani in February 2020, claiming that no repayment had been made by him as personal guarantor.
SBI then moved the NCLT in March 2020 under Section 95 of the Insolvency and Bankruptcy Code to initiate insolvency resolution process against Ambani.
In August 2020, the NCLT appointed Jitender Kothari as resolution professional in the matter under Section 97 of the IBC.
