ANZ settles Oswal legal dispute, rejects allegations made during trial

ANZ has settled its multi-billion dollar lawsuit with the Indian business couple, chalking up an additional $145m hit.

Radhika Oswal and husband Pankaj with their daughters Vasundhara and Riddhi outside Victorian Supreme court after giving evidence in ongoing litigation against the ANZ bank. (David Geraghty/The Australian)

Flamboyant Indian business couple Pankaj and Radhika Oswal have settled their multi-billion dollar lawsuit with the ANZ, the bank has told the stock exchange.

The size of the payment made by the ANZ to the couple is unknown.

ANZ (ANZ) said the deal will result in a $145m hit to its bottom line as an “additional impairment” but a spokesman for the Oswals said this figure “does not reflect the size of the settlement” and its believed the figure could be more than $200m.

“We are bound by a confidentiality agreement not to disclose the settlement terms,” he said.

He said the Oswals were “very satisfied with the settlement and pleased that the matter is over”.

In an all-staff email sent this morning, obtained by The Australian, Mr Elliott said it was “not normal that we settle legal cases in situations like those involving the Oswals”.

The Oswals had been suing the bank and receivers PPB for as much as $2.5bn over ANZ’s seizure and sale of their majority stake in Burrup Fertilisers in 2010 as part of a dispute over $1bn the couple owed to the bank.

ANZ in turn sued the Oswals for allegedly misappropriating $150m from the company towards luxury cars, a boat, property including the couple’s as-yet-unfinished Perth mansion and Mrs Oswal’s vegetarian restaurant chain, Otarian.

During an at-times torrid trial in the Victorian Supreme Court, the Oswals accused ANZ’s then chief risk officer, Chris Page of racism towards the couple and putting Mr Oswal in a headlock.

Mrs Oswal also accused ANZ general counsel Bob Santamaria of saying that if she did not pledge her stake in the fertiliser business to the bank she and her husband would go to jail and their children would be orphans.

“ANZ does not accept many of the claims made in court and we completely reject the allegations made against our staff,” ANZ chief executive Shayne Elliott told the ASX.

“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 couple’s spokesman said they “find it curious that the ANZ rejects all the allegations yet is prepared to pay a significant sum to stop them”.

The case is listed for hearing at 10.30am, when it is expected the parties will ask the court to formally end proceedings.

A Federal Court case in which the couple are challenging tax bills over the Burrup business is also settled as a result of the deal with the ANZ. This will enable the Oswals to leave the country, their spokesman said.