The Bank of Baroda is on its way out of South Africa and this will have a major impact on Gupta owned companies since it has been the only bank willing to do business with them.
EWN reporter Barry Bateman says the Bank of Baroda stated that from 1 March it would no longer be accepting any deposits, and by end of March, it plans to cease all operations in SA.
Bateman says the Gupta-linked companies are relying on the ruling in December last year, where the High Court interdicted the bank from closing the Gupta-owned accounts and from ordering them to immediately settle their outstanding loans.
In the interim, the Bank of Baroda decided to pull out of SA.
Several Gupta-owned companies have turned to the High Court to stop the Bank of Baroda from closing its bank accounts arguing that closing down its SA operation is a breach of that court order in December, reports Bateman.
He says the bank has responded that forcing a bank to remain in a country to service this particular company, is unheard of.
Listen to Bateman's report below: