Legal troubles for Varun

Standard Chartered has sued Varun Shipping chairman and managing director Yudhishthir Khatau for $5.2m over a loan default in Singapore.

The loan worth $20m was provided to VSC International, a fully owned subsidiary of Varun Shipping, according to the company’s annual report for 2012.

The loan was guaranteed by Khatau and secured by a ship, the Business Standard reported.

VSC defaulted on the loan in March.

The two parties have not made any further comment. The Bombay Stock Exchange is awaiting a response from Varun.

The case will be heard in Singapore High Court.

Earlier in June, the shipowner reported a net deficit of INR 1.2bn ($20.28m) in the three months to 31 March.

It had earlier lost its operating licence in India in March over delayed drydockings and wage arrears.