Lanco’s tussle with Perdaman ends Lanco Infratech to pay AUD 7.5m

New Delhi/Hyderabad, April 29: In a “big relief” for the diversified group, Lanco Infratech on Monday said it will pay AUD 7.5 million to settle the protracted AUD 3.5 billion-legal battle with Australia’s Perdaman Chemicals over coal supply issues.

Lanco has agreed to pay the amount without admission of any allegations raised by Perdaman related to fuel supply from Griffin Coal, which was acquired by the group for about AUD 730 million in March 2011.

Perdaman had filed the lawsuit against Lanco in Australia, alleging noncompliance with fuel supply pact by Griffin Coal for its upcoming urea plant in Western Australia.

The protracted litigation for a claim of AUD 3.5 billion initiated by Perdaman Chemicals against Griffin Lanco has agreed to pay AUD 7.5 million without admission of any allegations raised by Perdaman related to fuel supply from Griffin Coal. Coal, Lanco group and its officers, in the Supreme Court of Western Australia is now at an end, Lanco said in a statement.

The company has agreed to “pay Perdaman a nominal amount of AUD 7.5 million plus legal costs to be taxed by the Court, without admission of any of the allegations of Perdaman.”

“This is a big relief. It is a fantastic outcome for Lanco,” said its CEO (business development) Nagaprasad Kandimalla. — PTI