State Bank of India had filed an application in National Company Law Tribunal (NCLT) to recover the amount the bank lent to Mr. Anil Ambani. Mr. Ambani had secured these loans given to Reliance Communications (RCOM) and Reliance Infratel (RINTL) under personal guarantees. Thus the bank seeks to invoke the personal guarantee clause (section 97(3)) of Insolvency and Bankruptcy Code (IBC). The tribunal had given Mr. Ambani a week to file his reply in the case.

On 14^th July, 2020, a division bench of had reserved its order after hearing both the parties. The loan amounts to Rs. 1200 crores. There have been resolution plans submitted before the NCLT and this lead to the reservation of the order by the division bench.

In early 2019, RCOM had filed for bankruptcy. RCOM was once a flagship company of the Reliance Group managed by Mr. Anil Ambani. In March, 2020 SBI had approved of a resolution plan to recover nearly 50% of the debt i.e. Rs. 23000 crore.

According to Reliance spokesperson, the loan was taken for RCOM and RITL and not for personal use even though there was personal guarantee given for the loan. Mr. Anil Ambani had clarified on 23^rd June, 2020 that the loan was availed not for personal use but for repayment of debt of certain Chinese and Indian banks by the two companies i.e. RCOM and RITL. He further added that according to the resolution plans before NCLT, if not whole then a significant part of RCOM and RTIL’s debt will be discharged and the matter will be resolved satisfactorily.