ICICI Bank UK is suing Assam Oil, the parent company of India’s oldest tea company, for $73.5 million (Rs 520 crore) in the London high court for damages for breach of contract for defaulting on loans.
The High Court London heard on Tuesday that ICICI Bank UK Plc gave $63 million worth of loans to Assam Oil Company on December 21, 2007 in order to “help it proceed with its investment strategy”. Assam Oil, registered in England, is the holding company of Assam Company India (Assam India), registered in India, the first tea company in the world. Assam Oil owns 38% of Assam India and has no other business other than this shareholding.
Bought by K K Jajodia in early 1990s, Kolkata-based Assam India manages 14 tea estates, and is involved in oil and gas exploration. Read more