Court hears Oswals entitled to $2.5bn in compensation

As the flamboyant Oswals’ case against ANZ opens, a court hears the couple’s hefty compensation claim.

The Oswals’ counsel, Tony Bannon SC, today opened their case in what is expected to be a 61-day trial. Picture: James Croucher.

ANZ Bank acted in “bad faith” by neglecting the interests of flamboyant business couple Pankaj and Radhika Oswal, entitling them to up to $2.5bn in compensation, a court has heard.

The couple’s counsel, Tony Bannon SC, today opened their case in what is expected to be a 61-day trial of their mammoth claim against the bank and receivers PPB over the forced sale in 2011 of their stake in Burrup Fertilisers.

Mr Bannon told the Victorian Supreme Court the bank only wanted enough money to clear what the couple owed them.

“The bank and receivers made it clear to anyone who would listen, including the receivers, that their purpose was simply to clear their debt,” he said.

“In other words, they disclosed the reserve price — and, it turns out, the upper price as well.”

He showed the court a file note prepared by law firm Clayton Utz, who acted for the fertiliser company’s part owner, Yara, which was interested in buying the rest of the business.

The note of a meeting with advisers to ANZ, Flagstaff, records the ANZ’s “primary intention is to complete a transaction which enables them to repay the full amount of the personal indebtedness owed by the Oswals to the ANZ.”

He said the least the Oswals were entitled to was $1.5bn.

The Oswals claim ANZ and receivers PPB sold the fertiliser plant for much less than it was worth after seizing it in 2011.

They are in turn accused of misappropriating about $150m from the company.

All parties deny any wrongdoing.

Much of this morning’s hearing was taken up by housekeeping issues, including an argument about confidentiality of gas contracts.

Separately, the Oswals have been hit with a $180m bill by the Tax Office, which has banned them from leaving the country until they pay.