Legal Restriction on Funds of Indian Businessman in Nigeria
A Federal High Court in Lagos has issued a significant legal order, preventing all banks in Nigeria from releasing or dealing with funds and assets belonging to an Indian businessman, Mr. Arun Goswami, and his companies, Metwest Steel Limited and Eastern Metals Limited. This decision was made due to alleged unpaid debts amounting to N9.50 billion.
The court order was issued by Justice Akintayo Aluko on 31 October 2025. It followed applications from two major banks: First City Monument Bank (FCMB) and Union Bank Plc. These institutions accused Goswami and his companies of defaulting on credit facilities that were jointly guaranteed by United Capital Trustees Limited.
According to court documents, Goswami and his firms are alleged to owe FCMB and United Capital Trustees Limited a total of N4.54 billion. Additionally, a separate debt of N4.96 billion is said to be owed to Union Bank Plc and United Capital Trustees Limited.
Justice Aluko granted the Mareva injunction after considering motions filed by the two banks in two separate cases: FHC/L/CS/798/2025 and FHC/L/CS/800/2025. These cases were argued by counsel A. Adedoyin-Adetunji.
The judge imposed restrictions on all commercial banks in Nigeria, including but not limited to GTBank, Access Bank, Zenith Bank, UBA, Fidelity Bank, First Bank, Stanbic IBTC, Sterling Bank, Wema Bank, Globus Bank, Jaiz Bank, Keystone Bank Limited, Opay Digital Services Limited, Palmpay Nigeria, PiggyVest, Momo Agent, and Polaris Bank Limited. These banks are now prohibited from releasing or dealing with any funds in the credit of Goswami and his companies until the conclusion of the ongoing lawsuits.
Additionally, banks such as Providus Bank, Signature Bank, Standard Chartered Bank, SunTrust Bank Limited, Union Bank of Nigeria Plc, Unity Bank Plc, and others are also restricted from handling any of the funds associated with Goswami and his companies. The court order further requires these banks to disclose the balances in all accounts operated by the defendants within seven days of receiving the court order.
Justice Aluko also imposed a restriction on Goswami, his companies, their directors, agents, servants, privies, or any other person under their control, from transferring or dealing with any monies in their Nigerian bank accounts. This includes a property located at Km 16, Asaba–Benin Expressway, Issele-Azagba, Delta State, which had been used as collateral under a Mortgage Debenture Deed dated 3 August 2022.
The restrained funds and assets are believed to represent outstanding obligations from bank guarantees, short-term finance facilities, overdrafts, and Central Bank of Nigeria term loans granted to the defendants. While granting the application, Justice Aluko ensured that the banks’ claims, amounting to N4.96 billion and N4.54 billion respectively, remain secured pending the conclusion of the cases.
The court also ordered the banks to file an undertaking regarding damages if the injunction is later found to have been improperly granted. An additional order was issued, directing the banks to file and serve an affidavit disclosing the balance on the defendants’ counterclaim accounts, regardless of where they are maintained, within seven days of service of the order.
The matter was adjourned to 23 February 2026 for further hearing.