Guptas has always been a soft target to WMC and its allies, over their support to RET policy by the President Zuma. That could be the only reason why WMC always tries to isolate the Gupta family to push them out of their way towards state capturing. The Verdict by the Johannesburg high court on Monday, in the favor of the Gupta family, might have dented WMC’s hopes as the court interdicts the bank from closing their accounts and also ordered that all of their accounts and loan agreements must operate normally. This could be a huge relief for all the families of 7500 employees whose livelihood were at stake in the process. The court also asked the Guptas to submit a final application on the same within 15 days.
Its worth mentioning here that after a number of banks has cut their ties off from the Gupta family over “Reputational Damage” concerns, Bob too followed the same trail asking the Gupta family to find an alternative till September, in their official statement in March. But as per the recent verdict, the Judge has prohibited the bank from proceeding any further on this. The list of the companies which filed the plea against the bank includes Oakbay Investments, VR Laser Services, Sahara Computers, Shiva Uranium, Tegeta Exploration and 15 others.
In bank official statement, the bank’s acting CEO in South Africa, Manoj Kumar Jha, stated by an affidavit that Bank of Baroda truly denies any further business with the Guptas after their alleged involvement in some suspicious transactions as been reported to the Financial Intelligence Centre. It was been also said that The transactions amounted to a huge sum of R4.2 billion between September 2016 and July 2017.
It was also been stated by the bank that in the wake of the recent so called “Gupta Leaks” they are under pressure to close all the ties off due to the “volume and seriousness” of the “allegations of serious misconduct against the Gupta family”. The bank also said that they have already suffered huge reputational damage irrespective of the fact, whether they are not aware that those allegations on the guptas were true or not
On the other side, the Guptas has given the justification that the bank was already intending to close their accounts and certain loan agreements which holds as a violation of contractual agreement between them. The Guptas also sold some of their business to avoid further allegations.