Pramod Mittal, Who Once Spent £50M on His Daughter's Wedding is Declared Bankrupt with £130M Debt: Report
Moneylife Digital Team 29 June 2020
Pramod Mittal, younger brother of global steel magnate Lakshmi N Mittal, is again in the news. Pramod Mittal, one of Britain's wealthiest men who spent £50 million on his daughter's wedding has reportedly been declared bankrupt with debts running to more than £130 million, says a news report.
 
According to the report from The Times, "Pramod Mittal, 64, appears to have lost a fortune while becoming embroiled in an investigation into organised crime."
 
A source told The Times: "They are no longer close and live separate lives. Lakshmi does not see why he should be financially responsible for his brother. This debt has nothing to do with him."
 
According to the report, Pramod Mittal's bankruptcy stems from his acting as a guarantor in 2006 for the debts of Global Ispat Koksna Industrija d.o.o. (Gikil), a Bosnian producer of coke used in steel manufacturing.
 
He was pursued by London-based Stemcor when he did not pay $166 million which was owed in 2013. Stemcor went on to separate its non-trading businesses - which included Mr Mittal's guarantee—into a separate company, Moorgate Industries, which was granted the bankruptcy order at the Insolvency and Companies Court, the report says. 
 
As reported by Moneylife, last year in July Pramod Mittal and his two colleagues were arrested and released in Bosnia after paying a hefty €12.5 million. The release order also mandated an ‘insurance’ of €11 million deposited into a special account until the end of the proceedings. (Read: Pramod Mittal Arrested: Got Away in India, Caught in Bosnia)
 
He was held for suspicious transfer of nearly €11 million from Lukavac (Bosnia)-based GIKIL, which is a partnership between Global Steel Holdings (GSHL) and Coke and Chemical Conglomerate (KHK) owned by the Government of Bosnia-Herzegovina. GIKIL was set up in 2003 and has over 1,000 employees.
 
In May 2019, Pramod Mittal got out of another sticky situation in India when his older brother Lakshmi N Mittal bailed him out by paying over $200 million owed to the State Trading Corporation (STC). This helped quash civil and criminal proceedings that had slowly wound their way to the Supreme Court of India.  
 
Earlier in 2013, despite being a bank defaulter, Pramod Mittal has reportedly spent 60 million Euros (about Rs505 crore) for his daughter’s lavish wedding in Barcelona. (Read: Pramod Mittal spent 60 million Euros on daughter's lavish wedding?)
 
As reported by Moneylife, during the end 2010, State Bank of India (SBI) gave a fresh loan worth Rs130 crore to Ispat Industries (it was controlled by the Mittals at that time) adjusting Rs30 crore against earlier dues. (Read: SBI helps sick Ispat Industries with fresh money to prevent loan being classified as ‘bad’)
 
 
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Comments
vydehi.ramamirtham
1 year ago
In the last decade, the unholy nexus between politicians and businessmen is bleeding our economy. The common man on the street has to pay the price for no fault of his. So sad.
rs235m
1 year ago
Is it possible that he has transferred all assets in some one else's name and declare himself as bankrupt to dodge repayment to banks?
tillan2k
Replied to rs235m comment 1 year ago
some business men are known to swing called TOPI ferna 9 change identity . in ususl talk they will ask each othr kitni baar topi pheri.. how many time time u have bankrupted . it may mean at least 75 %of bankruptcy amount is in tax havens in personal accounts..
fnetwork
1 year ago
The brothers were never close. I know personally going as far back as 2005. The split up was acrimonius in 1994. The Government of India owned State Trading Corporation as well as SBI are willing co-conspirators. It was STC that initially funded GSHL/PM and gave him credibility whilst LNM successfully dissuaded London and New York banks like HSBC and Citi from any relationships with PM. In the back was former PM Manmohan Singh protecting "his baby STC" once the scandals started to surface as far back as 2009 (you mention the 2010 SBI role)... One Kolkatta newspaper that mentioned "a bag of money given to STC Chairman in 2009" had to retract.
It is ironic because the late Stemcor Chairman Oppenheimer was also a willing co-conspirator helping PM/Ispat funnel money to fund the Nigeria shenanigans. Apollo Fund, having taken over Stemcor, has no such sentiments and pursued diligently Collection - on the other hand - from the Artful Dodger is another story.
I have been asked this Q from several law firms recently. "Why did LNM pay STC $200mm in 2019 and also fund the escrow and bail for PM in Bosnia? " The Reason I give is to "keep him out of Jail". HOWEVER PM bankruptcy is a blessing in disguise for LNM. One less worry of a close family member mucking around the world tarnishing the Mittal name and the memory of his late father Mohanlal - from the fruits of whose toil the brothers enjoyed. Even though the split was acrimonius LNM must have great respect for his late Father. I say this because in January 2008 it was at Mohanlal's request that LNM/Arcelor ntervened in the bankrupt Bulgaria steel company Kremikovtzi to "save the family reputation and clean up the mess".
tillan2k
Replied to fnetwork comment 1 year ago
reputation jhas not meaning for such industrial houses their weight goes up in direct proportion to number of bankruptcies
kalemohan
1 year ago
THE SAME THING MAY HAPPEN IN CASE OF ANIL AGARWAL-'VEDANTA'INCHARGE.
Ramesh Popat
1 year ago
there will be a long list of globely!
and many foreign co.s too. plus
few countries also!
umeshs62
1 year ago
While investing in stock, one has to do a proper due diligence about the promoters. If they are marwaris, Gujaratis, Telugus or Kannadigas then one has to be extremely careful.
nsputcha
Replied to umeshs62 comment 1 year ago
Umesh(62), mother tongue has no correlation with fraudulent nature in any person. There are black sheep (in every tribe) along with honest business men.
suketu
Replied to umeshs62 comment 1 year ago
like yr mindset.Stick to good MNC's.Long list we have.
Meenal Mamdani
Replied to umeshs62 comment 1 year ago
Please, do not target entire communities because of the sins of the few.
shetyerb
1 year ago
Reminds of Mukesh Ambani and Anil Ambani.
sudhanva
1 year ago
yaardo duddu yallammana jaatre
rs235m
1 year ago
All coat suit boot are not gentlemen.
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