Pankaj Oswal sues Burrup Fertilisers for $500 million
12 May 2011
Pankaj Oswal of the Oswal Group Global is suing his former company Burrup Fertilisers for $500 million, claiming to have spent that money on the construction of the ammonia plant.
Oswal, along with his wife Radhika own 65 per cent of privately-held Burrup Fertiliser through its parent Burrup Holdings, while the remaining 35 per cent is held by Norwegian fertiliser giant Yara International.
The Burrup Group owes ANZ around A$800 million, of which A$360 million is against the Burrup Fertiliser plant and the remaining A$440 by the Oswal Group.
"I, and entities associated with me, have paid approximately $500 million towards the construction costs of the company's liquid ammonia plant on the Burrup Peninsula in Western Australia, which is a claim I and those entities have against Burrup Fertilisers," Oswal said in a statement.
"These costs compromise 100 per cent of the costs overruns on construction of the Burrup ammonia plant. Yara has been aware of these costs at least since 2006 and has never contributed to them. The ANZ Bank has been aware of these cost overruns."
It is alleged that Oswal misappropriated large sums of company funds without proper authority or disclosure and a complaint will be lodged with the Australian Securities & Investments Commission.
