The Guptas' banking woes started in 2017 when all four of the country's major banks declined to do business with the controversial family's companies.
The North Gauteng High Court on Monday dismissed an urgent application filed by 19 Gupta-linked companies wanting to compel the Bank of Baroda to continue offering services to them even though it has already indicated that it wants to close its South African branch.
The Bank of Baroda said it had informed the Gupta-linked companies on July 6 past year that it was ending its relationship with them.More news: Fortis Healthcare shares gain on open offer talk
Representing the bank, Advocate Azhar Bham said that the majority shareholder of the bank, the Bank of India, had made a decision to withdraw from South Africa as it was "no longer economically worthwhile".
Judge Tati Makgoka ordered Baroda in October a year ago to continue providing banking services to the Gupta-linked companies to protect their 7‚000 employees. "The Registrar' which is part of the South African Reserve Bank (SARB)' is in discussions with the Bank of Baroda to ensure its orderly withdrawal from South Africa so that no depositor is disadvantaged", the SARB said last month.
But attempts to stop the closure failed this morning when a judge in Pretoria ruled the bank's right to shut down overruled their rights as customers, according to EyeWitness News. He also prohibited the bank from ending its relationship or closing the bank accounts of the Gupta businesses.More news: MiLB Pace-of-Play Rule Changes Aim to Speed Up Games
The DA laid charges against the bank based on the outcome of the report.
Gupta brothers Atul and Ajay were supposed to testify before the parliamentary portfolio committee on public enterprises, which is investigating allegations of state capture at Eskom this week, but reportedly sent a lawyers' letter to the committee stating they were not in the country.More news: Why Kirk Cousins Can Succeed With the Vikings