pramod mittal: Pramod Mittal is in the soup, once again: Pandora Paper Leaks

Billionaire steel mogul Lakshmi Mittal’s younger brother Pramod Mittal, who was declared bankrupt by a UK court last year, is himself believed to have vetted the two biggest creditors which led to his approval. offer to settle by paying only 0.19% of what it owed to creditors, Pandora Papers survey shows.

Pandora Papers is a leak of nearly 12 million documents that reveal hidden wealth, tax evasion and in some cases money laundering by some of the rich and powerful in the world.

According to leaked financial documents, Mittal is the beneficiary of trusts which own Direct Investment Ltd – a British Virgin Islands (BVI) company to which Mittal has claimed it owes more than £ 1 billion – and Meadswell Estates Ltd, Another BVI company he said owned his residence in London, according to an Indian Express investigation report.

While facing bankruptcy proceedings in the UK, Mittal declared zero income, total assets of less than £ 150,000 and denied ownership of his longtime residence in London. He asked for an Individual Voluntary Agreement (IVA) in which he offered to pay £ 4.4million, or 0.19% of the roughly £ 2.5 billion he claimed to owe 20 creditors.

The IVA was approved by 75% of Mittal’s creditors in October last year.

UK-based Moorgate Industries, one of the creditors claiming £ 130million, alleged Mittal’s family members appeared to be shareholders in some companies that had approved the ‘shameful’ deal in bad faith, the report said investigation. The Pandora Papers have confirmed this, he added.

The data leaks were obtained by the International Consortium of Investigative Journalists (ICIJ) in Washington DC, which worked with more than 140 media organizations on its largest global investigation ever.

Mittal and the company spokesperson could not be reached before press time on Tuesday.

This is not the first time that Pramod Mittal has found itself in difficulty.

In 2012, its companies Global Steel Holdings Ltd (GSHI) and Global Steel Philippines Inc had defaulted on approximately $ 348 million in interest payments to the State Trading Corporation of India (STCI), prompting the company to ‘State to initiate several lawsuits against Mittal. and businesses.

In 2019, his brother LN Mittal helped Pramod Mittal pay his contributions to STCI.

More recently, the metallurgical companies Balasore Alloys Ltd and Gontermann-Peipers led by Pramod Mittal have encountered problems.

Many senior executives, including Managing Director Anil Surekha, have left Balasore Alloys. Many cited the non-payment of wages for several months and the non-operational status of the factories.

Several independent directors, including Rupanjana De, Sujit Kumar Majumdar, Kashi Prasad Khandelwal and Susil Kumar Pal, also resigned from the board of directors, citing the non-injection of funds by the promoters of the company as they had promised.

Mittal, the promoter of the company, had sent a letter on July 13 to all independent directors indicating that the company was working on setting up funds.

“I don’t feel good because my lungs are not working properly. I apologize for the disappointing business in the company. I am very sad about it, ”he said in the letter. “We have already spoken to the investor and we will infuse Rs 225 crore as per schedule.”

The company will also subscribe to 10% of the share capital, he said. “Please give me 48 hours to recover from my current health. I will have a meeting afterwards, ”Mittal said in his letter.

Mittal and the company spokesperson could not be reached for comment until press time on Tuesday.

Balasore Alloys’ five furnaces, with a total production capacity of 150,000 million tonnes of ferroalloys per year, are inactive after a power cut for non-payment of bills.

The ESB suspended the listing of its shares “for criminal reasons”.

According to the annual report filed with the ESB, as of March 31, 2019, the company had net debt of around Rs 15,435 crore and a cash balance of around Rs 2,872 crore.

Gontermann-Peipers (India), the cast and forged roller manufacturer promoted by Pramod and Vinod Mittal, was admitted to the National Company Law Tribunal (NCLT) in 2019. JSW Steel had submitted bids for the company. However, lenders have rejected the same.

A Chinese company, Xingtai Delong was also among the three shortlisted candidates for the company, but it backed down following the deterioration of Indo-China relations.

Sources said brothers Pramod and Vinod Mittal have now toppled.

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About Kristina McManus

Kristina McManus

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