Settlement of $1.5bn lawsuit between Oswals and ANZ appears close

The Indian business couple are said to have reached an in-principle agreement with ANZ to settle the $1.5bn lawsuit.

Pankaj Oswal (2nd right) and his wife Radhika (2nd left) and their daughters leave the Supreme Court of Victoria in Melbourne on Tuesday. (AAP Image/Julian Smith)

A settlement appears close in the $1.5bn lawsuit between Indian business couple Pankaj and Radhika Oswal and the ANZ bank.

A source close to negotiations said an in-principle agreement had been struck but no paperwork had been signed.

A second source said negotiations were underway this morning at the Melbourne offices of ANZ’s lawyers, Freehills.

Talks began yesterday afternoon after Radhika Oswal gave bombshell evidence to the Victorian Supreme Court that the couple and their two daughters were threatened by ANZ’s chief lawyer, Bob Santamaria, during negotiations over $1bn they owed the bank in December 2009.

Mrs Oswal was to be cross-examined by counsel for the bank Alan Archibald, QC, this morning but the hearing has been adjourned.

ANZ has been contacted for comment.

The Oswals are suing the bank for at least $1.5bn, claiming their Burrup Fertiliser empire was sold for less than it was worth after the bank seized it in 2010.