The ANZ Bank today has reached a commercial settlement with Indian billionaires Pankaj and Radhika Oswal following a dispute about the receivership and sale of Burrup Fertilisers in Western Australia in 2010.
The confidential settlement ends a $2.5 billion claim by the Oswals.
The bank says settlement will mean a charge of $145 million against the 2016 full year results.
The ANZ previously recovered outstanding loans made from 2005 to the Burrup/Oswal groups totalling $1.3 billon.
“ANZ does not accept many of the claims made in court and we completely reject the allegations made against our staff,” says CEO Shayne Elliott.
“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.”
Mrs Oswal alleged in court that the bank threatened her and her family to force her to sign a guarantee over her $1 billion stake in Burrup Fertilisers.
The bank alleged in court that Mr Oswal had forged documents to show Burrup had support of European banks.
The ANZ in 2010 put the business into receivership.
The Oswals then sued the ANZ over the 2011 sale of the fertiliser business. The claim they were shortchanged by $2.5 billion.
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