In a recent report by The Times, Pramod Mittal, brother of UK-based steel magnet Lakshmi Mittal has been reportedly declared bankrupt. The Insolvency and Companies Court in London declared the company destitute with debts of over £130 million.
Mittal is one of the country’s biggest exporters, who co-owns metallurgical coke producer Global Ispat Koksna Industrija Lukavac (GIKIL) in northern Bosnia.
Mittal had a guarantee share with the Stemcor and failed to produce $166 million when the Stemcor parted its non-trading businesses to form a separate company -- Moorgate Industries. On failing to pay the due amount, British steel trading and Stemcor reached to Mittal.
In talks with The Times, Michael Swangard and Duncan Lockhart, lawyers for Moorgate said, “Mr Mittal’s bankruptcy is an alarming sign for Moorgate and rethink about its share and owings with the Mittals and companies.”
Mittal’s lawyer, Richard Viegas, told The Times that a ‘complex corporate matrix’ had led to the bankruptcy order and he was pursuing an appeal.
Mittal along with two of his collegues were arrested and released in Bosnia post paying €12.5 million bucks in July 2019. The release order also mentioned an insurance of €11 million deposited into a special account till the proceedings end.
In 2017, Mittal was charged with a case of cheating and corruption against him by Central Bureau of Investigation (CBI), after a loss of Rs 2,112 crore to the State Trading Corporation (STC). However Mittal’s brother helped him overcome the debt.
Mittal had hit global headlines in 2013 after arranging his daughter’s big-fat wedding of worth £50 million.
(If you have a story in and around Mumbai, you have our ears, be a citizen journalist and send us your story here. )