The receiver of collapsed West Australian fertiliser giant Burrup Fertilisers has launched legal action against the founder of the company Pankaj Oswal and his wife Radhika, in an attempt to recover $95 million of the $110 million they allegedly siphoned out of the company to pay for their lavish lifestyle.
The Oswals, who left Perth after the company collapsed in late December and are yet to return, have denied the claims from insolvency firm PBB Advisory, which is in the process of trying to recover about $800 million for Burrup’s banking syndicate.
However, PBB’s statement of claim, filed yesterday in the Federal Court, alleges the pair used the money for property developments, to pay for personal credit card debts, to help pay for the use of a Gulfstream jet and to purchase a $2.7 million luxury boat.
A further $26 million was paid from Burrup to the pair for “miscellaneous funds”.
The Oswals, who became famous in Perth for the lavish lifestyle, own a 65% stake in Burrup Fertilisers. The remaining stake is held by Norwegian company Yara International, with whom the Oswals have been having a bitter feud.
Pankaj Oswal told The West Australian that the receivers claims are “unsubstantiated and unquantified allegations which are being contested in court”.
The case is due to come before the court on April 12.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
