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22
September 2016
One
of Australia's biggest banks reached a settlement with an Indian couple on
Thursday who sued the company for $1.9 billion. The Total Investment & Insurance Solutions
Pankaj
and Radhika Oswal alleged that Australia and New Zealand Banking Group (ANZ)
short-changed them $580 million when selling the couple's majority stake in
Burrup Fertilisers after the company went into receivership, Xinhua news agency
reported.
ANZ
said the terms of the settlement were confidential but the deal with the Oswals
meant the bank would take a $110 million hit to its bottom line this year.
A
spokesperson for the Oswals said the couple, who also settled a tax bill with
the Australian Taxation Office (ATO) worth an estimated $76.4 million, would be
leaving Australia.
"They're
very satisfied with the settlement. They were very pleased to be able to put
the facts before the court and they're pleased that it's over," the
spokesman said in a statement on Thursday. The
Total Investment & Insurance Solutions
"They
won't be staying in Australia. They are now planning their futures."
"The
($110 million) does not reflect the size of the settlement but the Oswals are
bound by confidentiality to not disclose the details."
Shayne
Elliott, CEO of ANZ, said that the settlement does not mean the bank has
accepted guilt.
"ANZ
does not accept many of the claims made in court and we completely reject the
allegations made against our staff," Elliott said in a statement to shareholders.
"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
Oswals' spokesman said it was "curious" that the bank would be
willing to pay a significant amount of money to stop allegations that it
claimed were untrue.
The
Oswals were forced to abandon the construction of their Perth mega-mansion,
dubbed "the Taj on the Swan" due to its position on the Swan River,
in 2010.
A
local council announced in September that the 6,600 sq.mt house, which the
couple planned to spend $53 million to build, would be demolished and turned
into road-building material.The Total
Investment & Insurance Solutions
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