Indian banks pursue $2bn loan repayment in trial against GVK
ECONOMY & POLICY

Indian banks pursue $2bn loan repayment in trial against GVK

In the High Court, a trial commenced involving six Indian banks pursuing unpaid loans totalling approximately $2 billion, inclusive of accrued interest, from GVK Coal Developers (Singapore) Pte and affiliated companies. Presided over by Judge Dame Clare Moulder in the Commercial Court division, the case was initiated by Bank of Baroda (represented by its Ras Al Khaimah branch), Bank of India (London branch), Canara Bank (London branch), ICICI Bank (represented by its Bahrain, Dubai, and Off-Shore Banking branches), Indian Overseas Bank (Corporate Branch, India), and Axis Bank.

The origins of the case trace back to 2011 and 2014 when loan facilities were extended to the company, which the banks assert are long overdue, except for $83 million derived from the sale of a Bengaluru airport and certain undisputed amounts. Court records indicate that the banks have been pursuing the matter in the High Court in London since 2020.

GVK's legal representatives had successfully requested a postponement in June of the previous year to prepare expert reports on Indian law for the trial. As the trial commenced, GVK was represented solely by an Indian advocate, reportedly having terminated their engagement with their UK legal firm in the weeks leading up to the trial.

The banks are being represented by the international law firm Reed Smith, which has instructed Karishma Vora, an Indian-origin barrister from 39 Essex Chambers London, to present the case before the Commercial Court in London. The case includes several other GVK group companies as defendants, primarily Singapore-based entities with a few from Telangana, including Black Gold Ventures Pte, Cool Water Ventures Pte, Harmony Waters Pte, GVK Natural Resources, GVK Power and Infrastructure, GVK Resources (Singapore) Pte, GVK Coal Resources (Singapore) Pte, and GVK Coal Exploration & Production Pte.

The banks are seeking repayment of the loans acquired in 2011 and 2014, with England being the jurisdiction applied in the case. The GVK Group has been contacted for a comment regarding the on-going trial.

In the High Court, a trial commenced involving six Indian banks pursuing unpaid loans totalling approximately $2 billion, inclusive of accrued interest, from GVK Coal Developers (Singapore) Pte and affiliated companies. Presided over by Judge Dame Clare Moulder in the Commercial Court division, the case was initiated by Bank of Baroda (represented by its Ras Al Khaimah branch), Bank of India (London branch), Canara Bank (London branch), ICICI Bank (represented by its Bahrain, Dubai, and Off-Shore Banking branches), Indian Overseas Bank (Corporate Branch, India), and Axis Bank. The origins of the case trace back to 2011 and 2014 when loan facilities were extended to the company, which the banks assert are long overdue, except for $83 million derived from the sale of a Bengaluru airport and certain undisputed amounts. Court records indicate that the banks have been pursuing the matter in the High Court in London since 2020. GVK's legal representatives had successfully requested a postponement in June of the previous year to prepare expert reports on Indian law for the trial. As the trial commenced, GVK was represented solely by an Indian advocate, reportedly having terminated their engagement with their UK legal firm in the weeks leading up to the trial. The banks are being represented by the international law firm Reed Smith, which has instructed Karishma Vora, an Indian-origin barrister from 39 Essex Chambers London, to present the case before the Commercial Court in London. The case includes several other GVK group companies as defendants, primarily Singapore-based entities with a few from Telangana, including Black Gold Ventures Pte, Cool Water Ventures Pte, Harmony Waters Pte, GVK Natural Resources, GVK Power and Infrastructure, GVK Resources (Singapore) Pte, GVK Coal Resources (Singapore) Pte, and GVK Coal Exploration & Production Pte. The banks are seeking repayment of the loans acquired in 2011 and 2014, with England being the jurisdiction applied in the case. The GVK Group has been contacted for a comment regarding the on-going trial.

Next Story
Infrastructure Urban

Reliance, Diehl Advance Pact for Precision-Guided Munitions

Diehl Defence CEO Helmut Rauch and Reliance Group’s Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence’s long-term commitment to the Indian market and its support for the Indian Government’s Make in India initiative. The partnership’s current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the “Vulc..

Next Story
Infrastructure Urban

Modis Navnirman to Migrate to Main Board, Merge Subsidiary

Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company’s growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..

Next Story
Infrastructure Urban

Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025

The Bharat InvITs Association’s industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States’ share of global activity below 15 per cent. Meanwhile, in..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?