labels: companies (banking)
NHB, ANZ want out-of-court settlementnews
Our Banking Bureau
09 November 2001

Mumbai: The National Housing Bank (NHB) and the ANZ Banking Group, the two warring parties, are likely to settle their issues relating to the famous securities scandal of 1992 outside the court. The process is likely to catch speed once NHB chairman Sekhar Agarwal returns to India.

These are, however, mere speculations and no party is willing to give an official version to the possibility. Chances of an amicable settlement caught on after the Supreme Court advised both the parties to try and settle their differences outside the court. It said that large public monies were involved in the matter and court proceedings could take longer to finish than envisaged.

If the case goes NHBs favour, ANZ will be required to pay Rs 1,552 crore to NHB. But if the case is won by the ANZ, NHB will have to pay more than Rs 600 crore. It has already made provisions to the extent of Rs 600 crore in its books. NHB had paid Rs 912 crore to ANZ in March 1997, after it lost a ruling made by an arbitration panel in the case.

The two parties had, in fact, initiated out-of-court settlement proceedings in December 2000 and NHB had also constituted a panel to talk on its behalf. However, not much headway could be made, as the countrys financial sector went through a torrid time in the current year, putting the entire process in jeopardy.

The committee set up by NHB comprised former NHB chairman P P Vora, LIC chairman G N Bajpai and former RBI governor Jagdish Capoor. The panel also held a series of meetings with ANZ Banking Group MD Elmer Funke Kuppe.

 

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NHB, ANZ want out-of-court settlement