A proverb is very famous or logical that no matter how hard the path of truth goes, there’s always a better end to it. The Verdict by the High Court in Johannesburg on Monday, in favor of the Guptas in their case against Bank of Baroda over the account closure issue, truly suffices the above phrase. The Court has prohibited the BOB bank to close the Gupta’s accounts till further notice and also asked to pay the cost of application.
The Judge has also stated that he had not yet had to associate himself with the virtues of the companies’ case, as he had only granted them 15 days to submit a final application against Bank of Baroda’s decision over account closure issue. it’s worth mentioning here that similar decision were also been made by the big four banks in South Africa, Nedbank, Standard Bank, Absa and First National Bank, who closed accounts of the Guptas companies citing “Reputational risks”.
It must be noted that as per the bank’s statement in March, it gave the companies until the end of August – and then later September – to find an alternative for moving money, but after the Judge Hans-Joachim Fabricius’s interdict against BoB, it’s been prohibited to close any of the accounts or deactivate or terminate the relationship with the Gupta companies. The Bank also cannot certain loan agreements and has to allow the accounts to operate normally. The companies, who filed the plea, were Oakbay Investments, VR Laser Services, Sahara Computers, Shiva Uranium, Tegeta Exploration and 15 others.
On the other hand, the Guptas has argued that the banks’s intentions to close accounts and certain loan agreements were a violation of their contractual agreements which is illegal. The Gupta family has to sell its several businesses to stand feasible in the country amongst all the allegations. It would be interesting to see how this unfolds further as the Guptas has to launch a final application within 15 days to avoid the verdict from being lapse.
The Above Article is in reference to the news published on WeeklyXpose on 9 oct 2017