Indian glamour couple 'paid advisors to keep quiet'
The couple behind Australia's unfinished Taj Mahal-inspired home allegedly paid their financial advisors $34 million (US$26m) in hush money to hide the true state of their Australian fertiliser business's affairs.
Apache Corporation barrister Stewart Anderson QC told the Victorian Supreme Court Pankaj and Radhika Oswal concealed $US490 million in cost overruns in building their Burrup ammonia plant and skimmed money off the top of the profitable fertiliser business to pay the overruns and fund their lavish Perth lifestyle.
"After they stripped that money out they then just fled the country," Mr Anderson said on Tuesday.
He said Mr Oswal used the deception to get finance from the ANZ bank to build the West Australian plant, gas from Apache and its Harriet joint venture partners to operate it, and revenue through an ammonia offtake deal with Norwegian energy firm Yara International.
Mr Anderson said Mrs Oswal conspired with her husband to conceal the true state of affairs.
The court heard the Oswals' two personal financial advisers were paid $US26 million to keep quiet about the cost overruns.
It heard the advisers wanted $US10 million in 2006 but Mr Oswal said the ANZ would be suspicious if a large amount was drawn down so early from a $US600 million line of credit to Oswal company Maruti Investments.
The claims come less than two months after the Oswals accused the ANZ Bank and its senior executives of "racial bigotry" after emails surfaced with the couple referred to in derogatory terms.
"Quite extraordinary; so clearly the $US600 million loan facility that Maruti had obtained which was not for the purpose of paying blackmail and hush money," Mr Anderson said.
"Mr Oswal had sought to make these payments to conceal from ANZ the fraudulent scheme."
The Oswals left Australia a few days before the ANZ appointed receivers in December 2010, leaving behind their half-finished Taj Mahal-inspired home in Perth, dubbed Taj on the Swan.
They returned in April this year for the complex civil trial seeking up to $2.5 billion in damages over the sale of their 65 per cent stake in Burrup Holdings.
Mr Anderson rejected suggestions the Oswals were left with nothing from the sale, saying they received hundreds of millions in the form of having their debts paid.
"They got a clean slate, not to mention that they stripped $150 million out of the company before doing the bunk and leaving Australia."
Mr Anderson said the receivers got the best price they could from 49 per cent buyer Apache and existing shareholder Yara increased its stake to 51 per cent.
Apache sold its interest to Yara for $US391 million last October after paying $US422 million in January 2012.
