Anil Ambani faces a $680 million legal challenge as the amount that Industrial & Commercial Bank of China (ICBC) is seeking to recover. It proposes to recover this money by invoking a personal guarantee given by Anil Ambani in 2012 to secure a $925 million loan for Reliance Communications. RCOM is currently in bankruptcy. Anil Ambani has claimed that he never gave any guarantee knowingly. According to Anil Ambani, he had only authorized his employees to furnish a non-binding personal comfort letter to lenders, including ICBC and EXIM Bank, China.

A trial will commence next year in a London Court as per the jurisdiction of the agreement. In the meanwhile, the court may ask part of the claim to be deposited with it the court. It remains to be seen if Ambani is able to prove in the British Court that it happened entirely outside his knowledge and that he was a victim of fraud by his employees. If not, the Chinese banks will make him pay a princely sum by way of personal guarantee. It remains to be seen if there is an out-of-court settlement that happens in the meantime.

As of now both RCOM and RPOWER do not have much of operating business and may have more of an impact on the promoter group than the companies per se and its shareholders. Also, the sharer prices of both stocks have long become penny stock prices. Hence there is no room for further losses for equity shareholders.