Innoson Demands GTBank Pays N32.87billion Over Illegal Charges

Innoson Demands GTBank Pays N32.87billion Over Illegal Charges

  • In order to get N32.87 billion from Guaranty Trust Holding Company, Innoson Vehicles has demanded that the company stop its restructuring
  • Innoson asked the Federal High Court to intervene in the pending debt allegedly owed by the financial institution since 2014
  • The amount rose to N32.87 billion due to interest accrued over the years, although Guaranty Trust denied the claim that it is indebted to anyone

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The Federal High Court in Lagos has been asked by Innoson Nigeria Limited to stop the restructuring of Guaranty Trust Bank to Guaranty Trust Holding Company over debt.

According to Cornel Osigwe, Head of Corporate Communications for Innoson, GTBank is indebted to the carmaker to the tune of N32,875,204,984.38.

Osigwe stated that a request has been made to the court to set aside a June 16 judgement that permitted the financial institution to proceed with its restructuring.

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GTBank has been taken to court by Innoson to recover N32.87billion debt
Innocent Chukwuma, founder of Innoson Vehicles, and Guaranty Trust Bank logo. Photo: Innoson
Source: Facebook

GTBank has already restructured into a Holding Company, but Innoson wants the process stopped to ensure the bank, as an entity, fulfils the judgment debt of suit no FHC/L/Cs/603/2006 and FHC/Cs/139/2012 respectively.

What happened between GTBank and Innoson

The long-run battle between GTBank (now GTCO) and Innoson is based on alleged illegal charges on the automaker's account by the banking institution.

In 2018, it was reported that the Supreme Court ordered GTBank to pay N14 billion reportedly deducted from Innoson Nigeria Limited's account.

The amount reported must be paid pending the determination of the court case between them, which rose from a 2014 order by Enugu Court of Appeal, which directed the bank to deposit N5.9 billion in interest yeiding account.

As the court case prolonged, the amount increased due to interest rate. The capital is now above N32.87 billion.

Note that in 2018, GTBank denied any knowledge of a court order which directed it paid N14 billion into any account.

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Cars45 CEO explains why Innoson struggles against foreign brands

The Chief Executive Officer of Cars45, Soumobroto Ganguly, gave reasons Nigerian carmaker, Innoson Vehicles, is struggling against foreign brands.

Ganguly said Africans don't have pride for products made in Africa compared to foreign vehicles, and Innoson needs government support for car importation.

The CEO said government needs to patronise Innoson as well in order to become a major client of the local car manufacturer and encourage high volume of production.


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