Gujarat Exclusive > National-World > Pramod Mittal, who spent 50 million pounds on daughter’s marriage, is now bankrupt

Pramod Mittal, who spent 50 million pounds on daughter’s marriage, is now bankrupt

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Brother of Britain’s 19th richest man Lakshmi Mittal, Pramod Mittal, who is known for his spending sprees, has a debt of 2.5 billion pounds, making him the most bankrupt person in Britain.

Pramod Mittal is the same man who spent 50 million pounds on his daughter Shrishti’s wedding in 2013. Interestingly, Pramod Mittal’s expenditure on his daughter’s marriage was at least 10 million pounds more than what Lakshmi Mittal spent on his daughter Vanisha’s wedding in 2004.

Downhill journey for Pramod Mittal

The downhill journey for Pramod Mittal started 14 years back when he agreed to become a guarantor for the loans taken by a Bosnian coke producer known as GIKIL. Eventually, GIKIL went caput leaving Pramot Mittal in neck-deep problems.

GIKIL could not make repayments to its steel trading guarantor firm in London.

That debt was then pursued by a company named Moorgate Industries, which obtained the bankruptcy order. According to a statement by Moorgate Industries, bankruptcy proceedings were initiated after Pramod Mittal failed to make payments on agreed deadlines.

“The debt arose following an LCIA arbitration award made in the petitioner’s favour in 2017 against a Bosnian company, the debts of which had been guaranteed by Mr Mittal and an Isle of Man-registered company (presently in liquidation),” Moorgate Industries statement said.

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“Moorgate brought proceedings in the Commercial Court seeking to enforce the guarantee and obtained an award against Mr Mittal and the Isle of Man company (for some US $166 million). Following those awards, Mr Mittal entered into a settlement agreement with Moorgate, under which he made payments to Moorgate in part-satisfaction of a reduced sum agreed to under the settlement agreement. After he failed to make one of the payments by the agreed deadline, Moorgate initiated bankruptcy proceedings,” it said.

Eventually, Judge Catherine Burton in June 2020 issued a bankruptcy order against Pramod Mittal for 139,786,656.43 pounds plus interest.

In addition to this, the Bosnian misadventure further resulted in an investigation against him charging him to be involved in organised crime for which he was arrested but later on released at a bail of £1 million. The investigation is still going on. Meanwhile, Pramod Mittal has proposed to pay 0.18p for every pound he owes.

Pramod Mittal’s liabilities

According to 64-year-old Pramod Mittal, he owes around 170 million pounds to his father, 2.4 million pounds to his son Divyesh, 1.1 million pounds to his wife Sangeeta and another 1.1 million pounds to brother-in-law Amit Lohia.

Pramod Mittal claims that he has no income, but holds assets such as 66,669 pounds worth shares, 7,000 pounds worth jewellery, and 45 million pounds worth property in India. He further said that his family home is under an offshore company where he has “no financial interest.

 

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