Entrepreneur Pankaj Oswal hits back at claims of financial irregularities over collapse of empire

Controversial Indian businessman Pankaj Oswal has hit back at suggestions that “financial irregularities” were behind the decision to appoint receivers to his company Burrup Fertilisers in late December – but there is no sign of when the entrepreneur will return to Perth to talk with the receivers.

ANZ Bank called in receivers from insolvency firm PBB in late December after an on-going dispute between Norwegian company Yara, which owns 35% of Burrup, and Oswal. The bank is reported to have $800 million worth of exposures to Oswal companies.

While the receivers have said the giant fertiliser plant owned by Burrup is very profitable, Yara and Oswal have been locked in a legal dispute, with Yara claiming there were financial irregularities in the way Burrup was run.

But Oswal yesterday hit back at these claims, calling them “cynical and frustrating”.

“I have yet to receive any substantive details of these so called ‘financial irregularities’,” Oswal said in a statement released yesterday.

“I find this frustrating as I am not able to make a comprehensive response.”

Oswal even claimed he had offered to make a $20 million “goodwill” payment to Yara to try and sort out any dispute between the two parties.

“I did this to avoid expensive and damaging litigation which I thought was in the best interests of the company.”

“This was an offer in writing to Yara to which they have yet to respond. Yara’s lack of communication on this issue leads me to think that its agenda has been to pressure me into selling our shares to them.”

But Yara dismissed the claim and accused Oswal of producing “misleading information”.

“As a Burrup shareholder, Yara has every right to be concerned about financial irregularities which the receivers have confirmed to exist, and we are not going to respond in detail to this latest smokescreen.”

PBB has said it is investigating the claims of financial irregularities, but did not comment on Oswal’s statement, which also claimed his wife’s shares in the business were “unencumbered” by debts.

Oswal has not said when or if he will return to Australia.