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.