The National Housing Bank (NHB) yesterday paid Rs 912 crore to ANZ Grindlays Bank. This was the amount which the three-member arbitration panel on March 29 had directed NHB to pay to the foreign bank.
The payment was by way of compensation to the foreign bank, which had credited Rs 506 crore paid to it by NHB in the account of the stock broker, Harshad Mehta. The dispute arose as NHB claimed that ANZ Grindlays had no authority to credit the amount in the account of Mehta.
A NHBs payment followed a ruling by the special court of Justice Variava, which directed the foreign bank that it must refund the disputed amount if the arbitration panels earlier award is set aside.