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ANZ settles with Indian tycoons over $1.5b dispute

Thursday, 22 Sep 2016 08:47:57 | Thuy Ong

The Perth couple was seeking at least $1.5 billion. (AAP: Julian Smith)

ANZ Bank has reached a commercial settlement with Indian tycoons Pankaj and Radhika Oswal over a dispute about the winding up and sale of their Australian fertiliser business Burrup Holdings.

The former Perth couple had launched legal action seeking at least $1.5 billion over the sale of Burrup, arguing the $US560 million sale of their 65 per cent stake in 2012 represented less than half its true value.

The bank has not disclosed the terms of the settlement, but said it would take an additional pre-tax charge of $145 million to its accounts, taken at its full year 2016 results.

"ANZ does not accept many of the claims made in court and we completely reject the allegations made against our staff," said ANZ chief executive Shayne Elliott in a statement.

External Link: anz tweet

"However we believe the settlement is the right decision for shareholders bearing in mind the residual risks in a case of this size and complexity."

The court had also been told of claims the Oswals had been abused and Mr Oswal had been physically assaulted by a bank official during negotiations.

The couple left Australia in 2010 after the collapse of Burrup and have only returned to Australia for the duration of the complex civil court case, which is understood to be the biggest trial in Victorian Supreme Court history.

Ms Oswal claims ANZ pressured her into signing a guarantee over $US568 million in debts to prevent her husband for going to jail for fraud over falsified security documents.

Mr Oswal has also been accused of misappropriating more than $150 million in Burrup money, part of which was spent on Perth mansions, luxury cars and his wife's vegetarian restaurant chain.

The Oswals also had one of Perth's longest-running property disputes over an unfinished mansion dubbed the "Taj Mahal". The building was destined to be the Oswals' $70-million Perth palace but work on the house stopped after Burrup went into receivership. It is now considered a dilapidated eyesore, and will be demolished.

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