The Industrial Development Corporation (IDC) is suing four companies linked to the politically connected Gupta family after they failed to repay a loan that the state-owned development financier had cancelled because it was suspecting illegal activity. The Guptas’ Oakbay Resources and Energy, Oakbay Investments, Action Investments and Shiva Uranium owe the IDC R287.5m in principal debt and interest and are also liable for the institution’s legal costs, it said in court documents. The amount is made up of R37.5m of the outstanding loan and the rest is interest, according to the IDC. The IDC cancelled its original R250m loan agreement, signed more than seven years ago, on November 10 after it said the Gupta companies breached the pact by possibly being involved in fraud. Ronica Ragavan, a director of Oakbay Resources, declined to comment on the IDC court case and referred queries to an Oakbay e-mail account. The family’s firms have also been in court this year to try to stop India’s B...
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