Oswal’s $1.5bn lawsuit puts ANZ ‘bigotry’ on trial

A flamboyant Indian couple suing the ANZ for at least $1.5bn have accused the bank of ‘racial bigotry’.

Pankaj and Radhika Oswal accuse the ANZ of ‘racial bigotry’ as part of their suit against the bank. Picture: James Croucher

A flamboyant Indian couple suing the ANZ for at least $1.5 billion have accused the bank of “racial bigotry” in its dealings with them over their Burrup Fertiliser business.

Tony Bannon SC, who is repres­enting Pankaj and Radhika Oswal in their mammoth lawsuit against the bank and receivers PPB, told the Victorian Supreme Court yesterday that emails ­between ANZ chief risk officer Chris Page and then chief executive Mike Smith in December 2009 revealed that the “true culture” of the bank accepted racism.

Yesterday’s courtroom revelations were the latest in a series of scandals over the ANZ’s culture that have rocked the bank this year. It is under scrutiny over an alleged sex, drugs and strip clubs trading-room culture that ­includes laughing at interest rate rigging. And it is embroiled in a row over sexism that saw leading ­broker Angus Aitken sacked last week after he criticised ANZ’s appointment of investment banker Michelle Jablko as chief ­financial officer.

In their lawsuit against ANZ, one of the biggest cases to come to trial in Victorian Supreme Court history, the Oswals claim the bank and PPB sold their 65 per cent stake in Burrup for less than it was worth in 2011 after seizing it over personal debts.

The bank denies the Oswals’ allegations and claims the couple misappropriated about $150 million from the fertiliser business­ ­towards items including a Gulf­stream jet, luxury cars, a still ­unfinished mansion in Perth and Ms Oswal’s chain of vegetarian restaurants, Otarian.

Mr Bannon read to the court a December 21, 2009, email from Mr Page to Mr Smith, reporting back on negotiations to get extra personal security from Ms Oswal.

“In essence, we are dealing with two very unsavoury characters,” Mr Page wrote. “We are dealing with Indians with no moral compass and an ­Indian woman, as every bit as ­devious as PO (Pankaj Oswal).

“This has been a very Indian characteristic transaction.”

Mr Bannon said the word ­“Indian’’ was used by Mr Page as “a derogatory term”.

“It is no more or less than racial bigotry,” he said. “It’s a document which evidences the personal animus that Page felt towards the ­Oswals in part because in his mind they had character flaws which he thought were particularly Indian.’’

He said it was alarming that a senior officer of a large bank would put such thoughts in an email to the chief executive without “apparent fear of rebuke”. This betrayed the “true culture of what was acceptable within the bank”, he said. And he slammed Mr Smith for failing to pull Mr Page into line. Instead, Mr Smith replied: “Chris, well done ... I guess we just need to keep the pressure on. What a bunch.”

Mr Bannon also read the court notes of a phone conversa­tion between Mr Page and PPB partner Ian Carson, recording Mr Page as looking for “dirt on PO”, who was described as ­“untrustworthy, being very difficult, dishonest”.

In court documents, Mr Oswal has also alleged Mr Page put him in a headlock.

An ANZ spokesman told The Australian “any form of racism­ is unacceptable. However, the comments are irrelevant to the legal merits of the Oswals’ case.”

Mr Page, who left ANZ in late 2011, could not be reached. Mr Smith stepped down as chief executive early this year, but ­remains a consultant to the ANZ.