Indian banks take Singapore's GVK to court for unpaid loans

11 Oct 2023 , 10:58 AM

Six Indian banks are suing GVK Coal Developers (Singapore) Pte Ltd and related firms for outstanding loans totalling over USD 2 billion, including accumulated interest. On Tuesday, the High Court London hosted the start of the trial.

The case was brought by Bank of Baroda (acting through its Ras Al Khaimah branch), Bank of India (acting through its London branch), Canara Bank (acting through its London branch), ICICI Bank Ltd. (acting through its Bahrain, Dubai, and Off-Shore Banking branches), Indian Overseas Bank (Corporate Branch, India), and Axis Bank Ltd.

The lawsuit stretches back to 2011 and 2014 when loan facilities were made available to the corporation. According to the banks, everything but USD 83 million from the sale of an airport in Bengaluru and a few other undisputed sums is past due.

According to court documents, the banks have been pursuing the action at the High Court in London since 2020.

In June of last year, GVK’s attorneys successfully requested a postponement so that they could get expert reports on Indian law for the trial.

Even though GVK was solely represented by an Indian attorney and reportedly disengaged their UK legal team in the weeks preceding the trial, the matter is now set for a two-week trial that will begin on Tuesday.

International law firm Reed Smith, which is representing the banks, has asked Indian-origin attorney Karishma Vora of 39 Essex Chambers London to deliver her arguments before the Commercial Court in London.

The other GVK group companies named as defendants in the case include Black Gold Ventures Pte Ltd, Cool Water Ventures Pte Ltd, Harmony Waters Pte Ltd, GVK Natural Resources Pvt Ltd, GVK Power and Infrastructure Ltd, GVK Resources (Singapore) Pte Ltd, GVK Coal Resources (Singapore) Pte Ltd, GVK Coal Infrastructure (Singapore) Pte Ltd and GVK Coal Exploration & Production Pte Ltd – mostly Singapore companies with a couple from Telangana.

The two loans that were taken out in 2011 and 2014 are being sought back by the banks, with England serving as the applicable jurisdiction.

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