Couple will leave Australia soon.
Indian Business tycoons Pankaj and Radhika Oswal have reached a commercial settlement with Australia and New Zealand Banking Group (ANZ) over a dispute about the sale of their Australian business.
Pankaj and Radhika Oswal, who owned the majority stake in Burrup Fertilizers, which went into receivership, had alleged that the bank short-changed them $580 million when they sold their stake in the company.
The couple had sued the bank for $1.9 billion arguing that the $US560 million sale of their 65 per cent Burrup Holdings stake in 2012 represented less than half its true value.
Though ANZ has kept the settlement confidential, the bank will have to spend an additional amount of $110 million taken at the full-year 2016 results. The bank had set aside a fund in August for the purpose.
The couple is said to be very satisfied with the settlement. “The Oswals are very satisfied with the settlement and pleased that the matter is over,” the couple’s spokesman said on Thursday.
“They are grateful that the Australian justice system allowed them to tell the Australian public what happened at Burrup before and after the receivership,” the spokesperson added.
“The ($110 million) does not reflect the size of the settlement, but the Oswals are bound by confidentiality to not disclose the details,” he added.
Apart from entering a commercial settlement, the ANZ bank has dropped a counterclaim of $100 million against the Oswals.
However, the bank said that the settlement does not mean it has accepted the guilt.
“ANZ does not accept many of the claims made in court and we completely reject the allegations made against our staff,” said Shayne Elliott, CEO of ANZ.
“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,” she added.
The couple has also settled a tax bill worth $76.4 million with the Australian Taxation Office (ATO) and are free to leave Australia.