Judge stops bank closing Gupta-linked accounts
The Gauteng High Court (Pretoria) has interdicted the Bank of Baroda from closing 20 Gupta-linked bank accounts pending the final outcome of their main application, says a BusinessLIVE report. The companies approached the court in September in a bid to have the date of the main application, which was meant to be heard in December, brought forward. Judge Tati Makgoka ordered that the bank not deactivate or close the companies accounts in the meantime. He also ordered that the Gupta companies lodge their final application within 15 days of his judgment.
‘The interim order shall lapse if the applicants (companies) fail to launch the application in the timeframe stipulated,’ he said.
The court was set to hear the main application in December but the companies argued that if the matter was heard after the accounts had already been closed the court would not be in a position to grant an effective remedy, or any at all. The Bank of Baroda was set to close the business and loan accounts of 20 companies on 30 September but the Gupta-linked firms were given a reprieve at the end of September when Makgoka reserved judgment in the matter but ordered that the accounts stay open pending the outcome.
The companies lost a bid for an interim-interim order in September, before it brought this application, stopping the bank from closing the accounts. In his judgment at the time Judge Hans Fabricius said he believed that the companies had very little prospect of success in their main application because of the ramifications it would have on the bank.
Makgoka disagreed with Baroda’s argument that it is suffering reputational damage through its association with the Guptas, notes a Beeld report. The judge said the allegations against the family have been in the public domain for many years and the bank did not present any evidence that any client or partner had threatened to cut their ties with the bank due to its business relationship with the family. Makgoka also said it could not seriously be contended that companies of their size could function without banking facilities. Fifteen of the companies employ some 7 650 people, Makgoka added.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
