burrup land themselves in court again

Fertiliser tycoon Oswal faces new claims in court

FERTILISER tycoon Pankaj Oswal is facing fresh allegations of misconduct in the WA Supreme Court as he weighs a $3 billion float.

In a writ filed in court, and obtained by The Australian, the Indian-born entrepreneur is accused of reneging on an agreement to hand over $1.53 million he allegedly owes a leading Perth property developer.

The payment would have settled an earlier legal case in which Mr Oswal stands accused of abandoning an office leasing deal he entered into with the developer.

Mr Oswal, who is known in Perth for throwing lavish parties with his socialite wife Radhika and for building a $70m Indian-style palace in ritzy Peppermint Grove, is one of Perth's most controversial business figures.

Questions have been raised in court in recent months over financial strains in Mr Oswal's business empire after he and his wife were unable to name any major assets unencumbered by debts.

In October last year, Perth property company Fairworld Holdings, partly owned by members of the Zorzi construction family, accused Mr Oswal of abandoning a CBD office leasing deal struck at the height of the resources boom in 2007.

Fairworld successfully applied for the Oswals to be examined in the Supreme Court over the affairs of their company, Worldwide Projects, which was placed in voluntary administration.

Fairworld alleges the Oswals breached the Trade Practices Act by acting in a misleading and deceptive manner when they entered into the 10-year leasing deal in 2008.

During questioning in May, it was revealed all of the Oswals' major assets had liabilities, including a $US350m ($400m) charge over Burrup Holdings, which he plans to float.

In the most recent writ lodged in May, Fairworld alleges that it struck a deal with Mr Oswal in March to settle the case, with the entrepreneur agreeing to pay rent of $1.29m as well as interest and costs of about $250,000.

However, Fairworld alleges that Mr Oswal pulled out of the settlement agreement two days later, with his lawyers, Murcia Pestell Hillard, asserting that "no agreement had been entered into".

Mr Oswal was unavailable for comment yesterday.

Mr Oswal abandoned a planned float of Burrup in 2008 when he sought to raise $500m, valuing the company at $3bn.

http://www.perthnow.com.au/business/news/fertiliser-tycoon-oswal-faces-new-claims-in-court/story-e6frg2qu-1225891518197