BAI Collapse: Rs 22 Billion Sought in Damages

Dawood Rawat, the former owner of the British American Investment (BAI) group, has initiated legal proceedings in the Commercial Division of the Supreme Court, claiming Rs 22 billion in damages. The complaint was filed through his lawyer, Me Gilbert Noël, against several parties including the Bank of Mauritius (BOM), PricewaterhouseCoopers (PwC), the Financial Services Commission (FSC), and directors of BAI—André Bonieux, Mushtaq Oosman, and Yogesh Rai Basgeet.

Rawat contended that he suffered significant financial harm following the revocation of the banking license of Bramer Banking Corporation Ltd (BBCL) in 2015.

He argued that this revocation was politically motivated and has had a catastrophic impact on his financial empire.

In his statement, Rawat noted that in 2015 he held a majority stake in BAI Co. (Mtius) Ltd, and that BBCL was a critical component of his group, operating under a license granted by the BOM.

According to Rawat, political changes in 2015 prompted the new administration to take extreme measures aimed at destabilizing the financial standing of the former Prime Minister Navin Ramgoolam’s associates.

He recalled a long-standing familial relationship between his family and the Ramgoolams dating back to the 1930s, suggesting that these ties may have influenced the scrutiny his businesses faced.

He accused the BOM of revoking BBCL’s banking license “without valid reason,” asserting that the decision was made in “bad faith” and disregarded all feasible alternative solutions.

Moreover, he criticized PwC and its affiliates for selling Bramer’s assets for a nominal fee of Re 1, claiming that no proper valuation was conducted, which he interpreted as evidence of a politically motivated dismantling of the BAI group rather than an economic necessity.

Rawat further claimed that prior to the license revocation, BAI had already taken steps to comply with new legislative requirements established in 2013.

These amendments targeted vertically integrated groups like BAI and mandated a reduction in insurers’ exposure to their affiliated businesses.

He asserted that a plan to reduce related investments had been developed with the FSC, leading to a decrease in exposure from 80% to 58% by the end of 2014.

He also highlighted concerns regarding alleged misconduct by members of the new government, noting that several withdrew their funds from Bramer Bank shortly before the license was revoked, raising suspicions of potential information leaks.

Furthermore, Rawat claimed that the appointment of new figures in the BOM, such as Basant Roi as governor, intensified the “political control” over the central bank, compromising its independence.

According to Rawat, the closure of Bramer Bank has devastated his 45-year career and jeopardized the investments of many Mauritians, not to mention the future of his businesses.

As a result, he is seeking legal restitution for the damages he has incurred.

Source: Defi Media