Pankaj Oswal
Encyclopedia
Pankaj Oswal is an Indian Australian businessman. He was the Chairman and Managing Director of Burrup Holdings Limited. BOY is a Perth
based company and one of the world's largest liquid ammonia
production companies. Oswal has a fortune of over A$2 billion making him one of Australia's richest people. He owns 55% of the equity capital of BOY.
Oswal arrived in Australia
in 2001 from India
.
In December 2010, the Oswal family departed Australia as ANZ appointed receivers to Burrup Holdings Ltd. With in excess of $860 million at stake, this is ANZ's biggest single impaired asset. By mid 2011, when it became clear that the Oswals would not be returning to Perth, the receivers indicated that Burrup senior executives were to face public examination in an attempt to locate hidden assets. Those executives included finance director, Raj Jeyarajah; legal council, Basil Lenzo; corporate director, Wolfgang Jovanovic; and commercial director, Vinojit Ambalavaner. Allergations of serious financial irregularities were referred to the Australian Securities & Investments Commission.
. After graduating he worked in several of his father's enterprises. Most notably Pankaj held senior management positions at Oswal Chemicals & Fertilisers Ltd when the company faced charges of a serious environmental nature. As per the traditions of arranged marriages, Pankaj partnered with Radhika, the result of that union being two daughters. The family is Jain, with their spiritual advisor being Bhaishri Rameshbhai Oza. The Oswals demonstrated support for Bhaishri by sponcering events and travel. Pankaj, through the marriage of his sister Shallu, is brother-in-law to Naveen Jindal
, an active Congress Lok Sabha Member
.
is home to rare ancient rock art and drawings. Many interested parties and groups have strenuously lobbied for protection of this unique area. Whilst under the control of Pankaj Oswal, there were several instances of environmental concern relating to the management and operation of the Burrup Fertilizer plant. On May 26, 2006, there was an extensive toxic spill of approximately 79,000 litres of liquid aMDEA from the Burrup Fertiliser facility due to incorrectly set up equiptment. Some of this chemical spill leached into the ecologically sensitive King Bay. Additionally a large quanity of process gas along with aMDEA gas was released into the atmosphere.There were growing concerns among the Pilbara community at the manner in which Mr Oswal, along with his partner Yara, dismissed environmental concerns and disregarded the significance of the rock art which is culturally important to the Aboriginal and Australian community.
In 2006 Mr Rambal applied to the courts to put Burrup into the hands of receivers claiming financial irregularities by Pankaj Oswal and related third parties. Additionally Rambal claimed that mismanagement contributed to safety breaches at the plant causing environmental problems. There were also claims that documents were falsified in relation to the plant completion date. The acrimonious split between Oswal and Rambal was eventually settled out of court. With the court case scheduled in Feb 2007, a confidential settlement was reached and Rambal went on to establish his own company, Perdeman Industries, within the year. During this same period, Yara instigated action to try to compel Oswal to sell his share of the company. Yara only ceased this action prior to the proposed float of Burrup Holdings. The stream of litigation continued with a real estate lease deal turned sour. Court documentation revealed allergations by Fairworld Holdings that the Oswals had breached the Trades Practices Act by engaging in misleading and deceptive conduct during lease negotiations in 2007. In this particular case, both Pankaj and Radhika Oswal were subpoenaed to attend court, in order to answer intense questions relating to assets and validity of company minutes etc. Growing media interest ensured wide spread coverage of this litigation.
Norwegian ammonia trader Yara International
were originally 30% share holders of Burrup Fertilisers due to a $100 million seed investment in the company. This share holding was to be sold down to 27% with the BOY float. After the float was called off, negotiations resulted in Yara increasing their share holding to 35% with, a payment of $141 million to Oswal in September 2008. Almost immediately, tensions in the Oswal and Yara relationship esculated into further court action when attempts were made by Pankaj to convert the unlisted Burrup from a public to proprietary company apparently to sidestep the reporting requirements of a public company.
The complexity of the Oswals company arrangements presents a jig-saw image to the outsider, nevertheless, PPB the administrators appointed to Burrup have detailed some interesting transactions. There are approximately thirteen Burrup related litigations still before the courts. It is difficult to keep track of the deals involving Pankaj and Radhika Oswal due to their multiple forays into business partnerships and joint ventures. There is a growing list of administrators dealing with various Oswal enterprises. Taylor Woodings became administrators for Oswal Developments in Feb 2011. Another operation instigated by Radhika Oswal, Otarian, was subject to a winding up petition by a creditor, Fileturn, which forced the closure of the London outlets. The financing arrangements for Otarian link back to another piece of the jigsaw, Oswal Projects based in Singapore. The financial records for Otarian show approximately $7.5 million share capital being imput from Oswal Projects. PPB list a similar amount of money diverted from Burrup to Oswal Projects. Claims by PPB cite that Pankaj Oswal engaged in fraudulent practices whilst Director of Burrup, and the accusations are now before the courts. If successful, these claims may elevate Pankaj Oswal to one of biggest frauds in Australian history.
Plant in India was subject to serious charges of both an environmental and financial nature.
Cheap and plentiful supplies of gas are essential to the continued viability of the Burrup plant. The contracted gas suppliers are the Harriet Joint Venture partners Apache Corporation
, Tap Oil Ltd, and Kuwait's Kufpec through their Varanus Island
project. On going disputes and litigation relating to the gas supply are certainly hindering the Burrup sale process instigated by ANZ appointed receiver PPB. Litigation includes claims of breaches in confidentiality by PPB relating to the contract gas price, which is interesting given that Pankaj Oswal often disclosed that information during media interviews. Time will tell if the Burrup plant is destined to become a testiment to exaggerated visions collapsing under poor groundwork and fraud.
Oswal Agro Mills Ltd., Oswal Agro Furane, Sohanaa International Pvt. Ltd,
Oswal Spinning & Weaving Mills Ltd.,
Oswal Brasil Refinaria de Petroleo Brazil,
Lucky Star Entertainment ,
Oswal Overseas Ltd.,
Oswal Group Global,
Oswal Projects Ltd.,
Paramount (WA) Ltd.,
Worldwide Projects,
Garuda Aviation,
Universal Projects FZE,
Otarian,
Maruti Shipping Pte., Maruti Investments Ltd, Maruti Logistics Pte Ltd,
Oswal Oman Caustic FZCO (now The Saltic FZCO), Petrochemical Holdings Pty Ltd., Biz Dev International Pty Ltd, Katz Investments, Perrera Investments, Murcury Ltd, Double Time Enterprises, Burrup Holdings Ltd
(Burrup Fertilizers Pty Ltd, BFPL & Burrup Trust), Oswal Energy Pty Ltd, Oswal Resources Pty Ltd, Oswal Developments (OSDEV), Oswal Industrial Pty Ltd, Oswal Green Tech Ltd, Galaxy Projects FZCO, Comical Ali Militant Vegetarian Pty Ltd.
By no means is this a conclusive list of companies with an Oswal association. There can be confusion due to the fact that the business names of Oswal companies often closely resemble other larger well regarded organizations. An example of this relates to Oswal Group that have no association with Pankaj and family. Oswal Engineering Works are part of the Oswal Group, however there are also companies, Oswal Engineering Corporation and then Oswal Engineering & Chemical Corporation which may have an association with Pankaj Oswal. Additionally the Oswal's frequently refer to their various companies in slightly different formats as time passes. To add to the confusion some of these businesses seem inactive, have been liquidated, or put into voluntary receivership, with investors often lacking accurate and up to date information. Then there are other projects that have simply been abandoned, for example, Gladstone Oil Refinery.
Perth, Western Australia
Perth is the capital and largest city of the Australian state of Western Australia and the fourth most populous city in Australia. The Perth metropolitan area has an estimated population of almost 1,700,000....
based company and one of the world's largest liquid ammonia
Ammonia
Ammonia is a compound of nitrogen and hydrogen with the formula . It is a colourless gas with a characteristic pungent odour. Ammonia contributes significantly to the nutritional needs of terrestrial organisms by serving as a precursor to food and fertilizers. Ammonia, either directly or...
production companies. Oswal has a fortune of over A$2 billion making him one of Australia's richest people. He owns 55% of the equity capital of BOY.
Oswal arrived in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
in 2001 from India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
.
In December 2010, the Oswal family departed Australia as ANZ appointed receivers to Burrup Holdings Ltd. With in excess of $860 million at stake, this is ANZ's biggest single impaired asset. By mid 2011, when it became clear that the Oswals would not be returning to Perth, the receivers indicated that Burrup senior executives were to face public examination in an attempt to locate hidden assets. Those executives included finance director, Raj Jeyarajah; legal council, Basil Lenzo; corporate director, Wolfgang Jovanovic; and commercial director, Vinojit Ambalavaner. Allergations of serious financial irregularities were referred to the Australian Securities & Investments Commission.
Family background
Pankaj is the son of Aruna and Abhey (sometimes spelt Abhay) Kumar Oswal, grandson of Lala Vidya Sagar (Lala Ji) and Smt. Mohan Dai Oswal. Pankaj grew up in India and studied at Manipal Institute of TechnologyManipal Institute of Technology
The Manipal Institute of Technology is a constituent institution of the Manipal University that specializes in the fields of engineering and technology. MIT contains 16 academic departments, and awards undergraduate, graduate and doctoral degrees...
. After graduating he worked in several of his father's enterprises. Most notably Pankaj held senior management positions at Oswal Chemicals & Fertilisers Ltd when the company faced charges of a serious environmental nature. As per the traditions of arranged marriages, Pankaj partnered with Radhika, the result of that union being two daughters. The family is Jain, with their spiritual advisor being Bhaishri Rameshbhai Oza. The Oswals demonstrated support for Bhaishri by sponcering events and travel. Pankaj, through the marriage of his sister Shallu, is brother-in-law to Naveen Jindal
Naveen Jindal
Naveen Jindal is an Indian politician and Member of Parliament from the Kurukshetra Lok Sabha constituency in the northern Indian state of Haryana. He is the Chairman and Managing Director of Jindal Steel and Power Limited, which is part of the $15 billion diversified O.P...
, an active Congress Lok Sabha Member
Lok Sabha
The Lok Sabha or House of the People is the lower house of the Parliament of India. Members of the Lok Sabha are elected by direct election under universal adult suffrage. As of 2009, there have been fifteen Lok Sabhas elected by the people of India...
.
Environmental issues - Burrup
The Burrup Peninsula/MurujugaMurujuga
Murujuga , is a peninsula often known as Burrup Peninsula in the Pilbara region of Western Australia, adjoining the Dampier Archipelago and near the town of Dampier...
is home to rare ancient rock art and drawings. Many interested parties and groups have strenuously lobbied for protection of this unique area. Whilst under the control of Pankaj Oswal, there were several instances of environmental concern relating to the management and operation of the Burrup Fertilizer plant. On May 26, 2006, there was an extensive toxic spill of approximately 79,000 litres of liquid aMDEA from the Burrup Fertiliser facility due to incorrectly set up equiptment. Some of this chemical spill leached into the ecologically sensitive King Bay. Additionally a large quanity of process gas along with aMDEA gas was released into the atmosphere.There were growing concerns among the Pilbara community at the manner in which Mr Oswal, along with his partner Yara, dismissed environmental concerns and disregarded the significance of the rock art which is culturally important to the Aboriginal and Australian community.
Litigation Prior to ANZ appointment of Receivers Dec 2010
Due to complex structuring of the Oswal group of companies, there have been some unusual and difficult legal matters presented to the courts, as various businesses attempted to resolve issues arising from their dealings with Pankaj Oswal. Litigation instigated by Paharpur Cooling Towers clearly demonstrates a complexity of contract arrangements. Another curious case involved Mr Vikas Rambal who is a former friend and business partner of Pankaj Oswal.In 2006 Mr Rambal applied to the courts to put Burrup into the hands of receivers claiming financial irregularities by Pankaj Oswal and related third parties. Additionally Rambal claimed that mismanagement contributed to safety breaches at the plant causing environmental problems. There were also claims that documents were falsified in relation to the plant completion date. The acrimonious split between Oswal and Rambal was eventually settled out of court. With the court case scheduled in Feb 2007, a confidential settlement was reached and Rambal went on to establish his own company, Perdeman Industries, within the year. During this same period, Yara instigated action to try to compel Oswal to sell his share of the company. Yara only ceased this action prior to the proposed float of Burrup Holdings. The stream of litigation continued with a real estate lease deal turned sour. Court documentation revealed allergations by Fairworld Holdings that the Oswals had breached the Trades Practices Act by engaging in misleading and deceptive conduct during lease negotiations in 2007. In this particular case, both Pankaj and Radhika Oswal were subpoenaed to attend court, in order to answer intense questions relating to assets and validity of company minutes etc. Growing media interest ensured wide spread coverage of this litigation.
Attempted Floats of Burrup Holdings (BOY) 2008
In mid 2008, a great deal of fanfare accompanied the promotion of upcoming float of Burrup Holdings Ltd. Overall reaction's from various market commentators were negative. Some newspaper reports highlighted deficiencies in the prospectus document, which resulted in increased scruntiny of the float deal. The corporations act requires full disclosure of third party relationships and loans, however the BOY prospectus neglected to detail several loans to related companies registered in the British Virgin Islands and other overseas locations. Various comment boards picked up on the negative aspects of the Oswal operation of Burrup Fertilisers Pty Ltd. Ultimately, Pankaj Oswal called off the proposed float. Given the companies subsequent trading figures, many commentators felt vindicated in their recommendations to avoid the BOY float.Norwegian ammonia trader Yara International
Yara International
Yara International ASA is a Norwegian-based chemical company. Its largest business area is the production of nitrogen fertilizer, however it also encompasses the production of dry ice, nitrates, ammonia, urea and other nitrogen-based chemicals....
were originally 30% share holders of Burrup Fertilisers due to a $100 million seed investment in the company. This share holding was to be sold down to 27% with the BOY float. After the float was called off, negotiations resulted in Yara increasing their share holding to 35% with, a payment of $141 million to Oswal in September 2008. Almost immediately, tensions in the Oswal and Yara relationship esculated into further court action when attempts were made by Pankaj to convert the unlisted Burrup from a public to proprietary company apparently to sidestep the reporting requirements of a public company.
Other Litigation
Early 2011, Limited Edition Luxury Homes started action to recover monies owed by the Oswals for construction costs on their extravagant new home dubbed "Taj Mahal on Swan". The success of this court action was a hollow victory given that the Oswals had permanently departed Australia. Administrators, PPB have claimed that funds were diverted from Burrup to finance the Oswals lifestyle and the Peppermint Grove building project. The "Taj" remains unfinished and an eyesore.Response to activities of Pankaj Oswal - BurrupWatch
In some quarters there were growing concerns relating to the activities of Pankaj Oswal and Burrup Fertilisers Pty Ltd. In this age of social media the creator of Burrupwatch provides constant news undates of those activities. Burrupwatch has in turn been recognized and cited in various media stories.Third Party Relationships
Over the years, speculation has been rife about the financial relationship of Pankaj's companies to the business operations of his father, Abhey Oswal. In Australia and India, commentators have voiced concerns relating to the vague and incomplete details offered in the annual reports of companies operated by Oswal senior and Pankaj Oswal. The myriad companies associated with the Oswal family extend across several continents. These ventures are all in differing transient stages of operation, with Oswal Overseas Ltd. taking prominence recently. The push into the Indonesian coal market by Abhey's company, Oswal Overseas, co-insided with Pankaj's creation of the shipping company Maruti based in Singapore. As with Burrup, ANZ became involved with the financing of Maruti Shipping. The media started to focus on companies like Maruti, attempting to piece together an image of the Oswal web.The complexity of the Oswals company arrangements presents a jig-saw image to the outsider, nevertheless, PPB the administrators appointed to Burrup have detailed some interesting transactions. There are approximately thirteen Burrup related litigations still before the courts. It is difficult to keep track of the deals involving Pankaj and Radhika Oswal due to their multiple forays into business partnerships and joint ventures. There is a growing list of administrators dealing with various Oswal enterprises. Taylor Woodings became administrators for Oswal Developments in Feb 2011. Another operation instigated by Radhika Oswal, Otarian, was subject to a winding up petition by a creditor, Fileturn, which forced the closure of the London outlets. The financing arrangements for Otarian link back to another piece of the jigsaw, Oswal Projects based in Singapore. The financial records for Otarian show approximately $7.5 million share capital being imput from Oswal Projects. PPB list a similar amount of money diverted from Burrup to Oswal Projects. Claims by PPB cite that Pankaj Oswal engaged in fraudulent practices whilst Director of Burrup, and the accusations are now before the courts. If successful, these claims may elevate Pankaj Oswal to one of biggest frauds in Australian history.
Viability of Burrup Fertilisers Pty Ltd
On the basis of submissions made by Pankaj Oswal, the West Australian government invested over $135 million worth of infrastructure to assist in the establishment of the Burrup plant. In the early stages of the project, had the W.A. Government investigated the varacity of Mr Oswals statements it may well have come to light that the OrissaOrissa
Orissa , officially Odisha since Nov 2011, is a state of India, located on the east coast of India, by the Bay of Bengal. It is the modern name of the ancient nation of Kalinga, which was invaded by the Maurya Emperor Ashoka in 261 BC. The modern state of Orissa was established on 1 April...
Plant in India was subject to serious charges of both an environmental and financial nature.
Cheap and plentiful supplies of gas are essential to the continued viability of the Burrup plant. The contracted gas suppliers are the Harriet Joint Venture partners Apache Corporation
Apache Corporation
Apache Corporation is an American independent oil and gas corporation. It is headquartered in 1 Post Oak Central in the Uptown district of Houston, Texas....
, Tap Oil Ltd, and Kuwait's Kufpec through their Varanus Island
Varanus Island
Varanus Island is the largest of the Lowendal Islands, an archipelago off the north west coast of Western Australia, near Karratha in the Pilbara region...
project. On going disputes and litigation relating to the gas supply are certainly hindering the Burrup sale process instigated by ANZ appointed receiver PPB. Litigation includes claims of breaches in confidentiality by PPB relating to the contract gas price, which is interesting given that Pankaj Oswal often disclosed that information during media interviews. Time will tell if the Burrup plant is destined to become a testiment to exaggerated visions collapsing under poor groundwork and fraud.
List of Companies associated with Pankaj Oswal and family
Oswal Chemicals & Fertilisers (formally Bindal Agro),Oswal Agro Mills Ltd., Oswal Agro Furane, Sohanaa International Pvt. Ltd,
Oswal Spinning & Weaving Mills Ltd.,
Oswal Brasil Refinaria de Petroleo Brazil,
Lucky Star Entertainment ,
Oswal Overseas Ltd.,
Oswal Group Global,
Oswal Projects Ltd.,
Paramount (WA) Ltd.,
Worldwide Projects,
Garuda Aviation,
Universal Projects FZE,
Otarian,
Maruti Shipping Pte., Maruti Investments Ltd, Maruti Logistics Pte Ltd,
Oswal Oman Caustic FZCO (now The Saltic FZCO), Petrochemical Holdings Pty Ltd., Biz Dev International Pty Ltd, Katz Investments, Perrera Investments, Murcury Ltd, Double Time Enterprises, Burrup Holdings Ltd
(Burrup Fertilizers Pty Ltd, BFPL & Burrup Trust), Oswal Energy Pty Ltd, Oswal Resources Pty Ltd, Oswal Developments (OSDEV), Oswal Industrial Pty Ltd, Oswal Green Tech Ltd, Galaxy Projects FZCO, Comical Ali Militant Vegetarian Pty Ltd.
By no means is this a conclusive list of companies with an Oswal association. There can be confusion due to the fact that the business names of Oswal companies often closely resemble other larger well regarded organizations. An example of this relates to Oswal Group that have no association with Pankaj and family. Oswal Engineering Works are part of the Oswal Group, however there are also companies, Oswal Engineering Corporation and then Oswal Engineering & Chemical Corporation which may have an association with Pankaj Oswal. Additionally the Oswal's frequently refer to their various companies in slightly different formats as time passes. To add to the confusion some of these businesses seem inactive, have been liquidated, or put into voluntary receivership, with investors often lacking accurate and up to date information. Then there are other projects that have simply been abandoned, for example, Gladstone Oil Refinery.
Taxing issues
During the course of various Burrup litigations, there have been revelations of the Oswals significant Australian Tax liabilities. Radhika Oswal owes over $186 million to the ATO which is one of the largest personnal tax debts incurred in Australian history. More recently another of Mrs Oswals companies, Comical Ali Militant Vegetarian was wound up due to unpaid taxes.Further sources
- http://www.firstpost.com/business/indian-tycoon-pankaj-oswal-accused-of-113-mn-corp-fraud-in-australia-101595.html#disqus_thread
- http://www.moneycontrol.com/stock-message-forum/oswalagromills/comments/3841#top_pos
- http://www.in.com/discuss/oswal-agro-mills_3841.html
- http://www.theaustralian.com.au/news/nation/oswal-fertiliser-firm-owns-3m-cruiser/story-e6frg6nf-1225975639188