Receiver says Oswal payments not linked to fertiliser business
The Oswals’ fertiliser firm allegedly made over $35m in payments towards assets “not linked” with the business.
Pankaj and Radhika Oswal’s Burrup Fertilisers made more than $35m in payments towards assets including development land, luxury cars and an unfinished mansion known as “Taj on Swan” that had nothing to do with the business, a court has heard.
Payments of more than US$30m to companies in Singapore and France also had nothing to do with Burrup, its former receiver told the Victorian Supreme Court.
The ANZ, which put Burrup into receivership, accuses the Oswals of misappropriating about $150m of company money.
Its claim is being heard as part of a long-running case in which the Oswals have accused ANZ of undervaluing the fertiliser plant when it was sold following its seizure in a dispute over debts to the bank.
The Oswals are seeking at least $1.5bn from the bank.
Simon Theobald, of PPB, told the court that during his time as receiver of the business between December 2010 and February 2012 he formed the view that none of the assets belonged to the Burrup business, and his view had not changed since then.
Mr Theobald said that early in the receivership he met with the tax office, which was auditing the company and seeking large amounts of information about travel claims - “largely aircraft” and fringe benefits tax deductibility reports.
His counsel, Philip Solomon, QC, asked Mr Theobald whether he concluded that a list of assets including the Taj on Swan development, land at Baldives, a Mercedes, a Range Rover, an Aston Martin and Mrs Owsal’s Otarian vegetarian restaurant chain, belonged to Burrup.
Mr Theobald said he concluded they did not.
He also said he did not authorise any payments to entities including the Burrup Trust, a private school in Sanawar, India and a clutch of Singaporean companies associated with the Oswals.
The court has previously heard that $54m was paid to the Burrup Trust before ANZ called in receivers.
The case continues.
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