Lagos Court Orders Banks to Freeze Indian Businessman’s Accounts Over ₦9.5bn Debt

The Federal High Court in Lagos has ordered all banks in Nigeria to freeze the accounts and assets of Indian businessman Arun Goswami and his companies, Metwest Steel Limited and Eastern Metals Limited, over alleged unpaid debts totalling ₦9.50 billion.

Justice Akintayo Aluko issued the order on October 31, 2025, following applications by First City Monument Bank (FCMB) and Union Bank Plc, which accused Goswami and his firms of defaulting on substantial credit facilities jointly guaranteed by United Capital Trustees Limited.

According to court filings obtained by our correspondent, the defendants allegedly owe ₦4.54 billion to FCMB and United Capital Trustees, while an additional ₦4.96 billion is owed to Union Bank and United Capital Trustees.

The court granted the Mareva injunction after hearing two separate motions — FHC/L/CS/798/2025 and FHC/L/CS/800/2025 — argued by counsel A. Adedoyin-Adetunji on behalf of the banks.

Justice Aluko’s order restrains all commercial banks in Nigeria — including GTBank, Access Bank, Zenith Bank, UBA, Fidelity Bank, First Bank, Stanbic IBTC, Sterling Bank, Wema Bank, Globus Bank, Jaiz Bank, Keystone Bank, Providus Bank, Palmpay, Opay, PiggyVest, Momo Agent, and Polaris Bank — from releasing or dealing in any way with funds belonging to Goswami or his companies pending the determination of the suits.

The listed financial institutions were also directed to disclose the balances in all accounts operated by the defendants within seven days of receiving the court order.

Additionally, the court restrained Goswami, his firms, and their representatives from transferring or disposing of any assets or funds held in Nigerian banks, including a property located at Km 16, Asaba–Benin Expressway, Issele-Azagba, Delta State, which was pledged as collateral under a Mortgage Debenture Deed dated August 3, 2022.

The restrained funds represent outstanding obligations from bank guarantees, overdrafts, short-term finance facilities, and Central Bank of Nigeria term loans granted to the defendants.

Justice Aluko ruled that the banks’ claims — ₦4.54 billion and ₦4.96 billion respectively — should remain secured until the cases are concluded, and further directed the plaintiffs to …file an undertaking as to damages in the event that the injunction is later found to have been wrongly granted.

In his ruling, Justice Aluko emphasized that the order was necessary to preserve the res (subject matter) of the suits and prevent the defendants from dissipating assets that could frustrate the enforcement of any eventual judgment in favour of the banks.

He further directed all the affected financial institutions to file and serve, within seven days of receiving the order, affidavits disclosing the balances in any accounts maintained by Goswami, Metwest Steel Limited, and Eastern Metals Limited as of the date of the ruling.

The judge warned that any attempt by the defendants or their agents to transfer, conceal, or tamper with the restrained funds and assets would amount to contempt of court and attract severe sanctions.

Court documents revealed that the disputed loans originated from a series of credit facilities extended between 2021 and 2023 to finance steel importation and industrial expansion projects. The facilities were reportedly backed by bank guarantees and secured with landed property in Delta State.

Both FCMB and Union Bank alleged that despite repeated demands and restructuring attempts, Goswami and his companies failed to meet their repayment obligations, leading to accumulated debts exceeding ₦9.5 billion.

The plaintiffs urged the court to grant the interim orders to safeguard their interests and prevent the defendants from liquidating their assets or moving funds out of jurisdiction before the final determination of the suits.

The matter has been adjourned to February 23, 2026, for further hearing, where the court is expected to consider the substantive claims and counterclaims filed by the parties.