Art and cash-filled Rio apartment the new battleground for Nissan\, Ghosn: court filing

Art and cash-filled Rio apartment the new battleground for Nissan, Ghosn: court filing

Reuters  |  SAO PAULO/TOKYO 

By and Ritsuko Ando

Ghosn is seeking to retrieve "personal belongings, documents, cash, objects and art pieces" from the beachfront apartment, which Nissan owns. The company says the home could contain evidence of financial misconduct, according to its filing in a last week.

The legal dispute has been fierce in recent days, showing that Ghosn and Nissan are not just clashing in Japan, where Ghosn was arrested last month and was formally charged on Monday, but around the world.

Ghosn's family obtained a favorable injunction last week that was swiftly overturned.

A source at Nissan in said on Monday afternoon the Ghosn family still did not have access to the apartment. Japanese newspaper reported the family obtained another favorable court decision on Monday but a Nissan said the company believed this was incorrect.

The previously unreported court papers seen by show the extent of the legal dispute between Ghosn and Nissan over access to the apartment, one of several around the world he has been able to use. Nissan alleges Ghosn, who had been hailed for bringing the company back from the brink of bankruptcy, under-reported his income by tens of millions of dollars and diverted corporate funds for personal use.

The apartment contains three safes that Nissan has yet to open, according to the court filings. The carmaker found them when it did an audit of the apartment following Ghosn's firing, the company said.

The apartment also has "furniture, artwork and decorative objects," it said. It was purchased by a Nissan subsidiary in late 2011 following the carmaker's launch of a factory in the nearby city of

"INCALCULABLE RISK"

The apartment was bought on expectations that Ghosn's trips to Brazil, where he was born and maintains citizenship, would "become more constant" after the factory opened, Nissan said in the filings.

The apartment is in the Copacabana neighborhood, on a road directly facing Rio's famous beaches. An apartment in the same building was listed online for 12 million reais ($3.07 million).

Monday's indictment in puts the ball back in the alliance partner, The French company, which owns a 43.4 percent stake in Nissan, is preparing for a Dec. 13 board meeting likely to consider Ghosn's future as its and chief executive.

has so far stopped short of dismissing Ghosn, while repeatedly demanding access to the findings of the Nissan internal investigation that led to his arrest.

Court proceedings in started on Nov. 29, when a asked a to grant him access to the apartment.

Nissan says allowing him access would "represent an incalculable risk of destruction of potential evidence of crimes allegedly committed." Ghosn has so far been denied access by Brazil's courts.

A lawyer for Ghosn, Jose Roberto de Castro Neves, told he was unaware of the existence of the three safes and that it was "absurd speculation" that they could contain evidence of wrongdoing.

"He's a very smart guy," de Castro Neves said in a brief phone interview. "If he had done something wrong, he would never leave it in the apartment."

prosecutors indicted Ghosn on Monday for under-reporting his income and also charged the automaker, making Nissan culpable for the alleged financial misconduct. Ghosn was arrested in on Nov. 19 and is being held in a jail.

Ghosn has not made any statement through his lawyers in but has denied the allegations, according to

($1 = 3.9074 reais)

(Reporting by and Ritsuko Ando; Additional reporting by Makiko Yamazaki; Editing by Jeffrey Benkoe, and Leslie Adler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, December 11 2018. 08:07 IST