World's richest steel magnate LN Mittal's brother Pramod Mittal is now bankrupt

Representative Image - Bankruptcy

Pramod Mittal, brother of the world’s richest steel magnate Lakshmi Mittal is 2.5 billion pounds in debt, making him the “most bankrupt” person in the United Kingdom, said a report by India Today.

According to Pramod (64), he owes around 170 million pounds to his father (94), 2.4 million pounds to his son Divyesh (30), 1.1 million pounds to his wife Sangeeta and another 1.1 million pounds to brother-in-law Amit Lohia, the report stated.

Pramod claims 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”.

He is however a “known” spendthrift, the report noted. Pramod famously spent 50 million pounds on daughter Shristi’s wedding in 2013 – 10 million pounds more than what brother Lakshmi Mittal spent on his daughter Vanisha’s wedding in 2004.

Lakshmi Mittal is not bailing his brother out this time, the report added.

Pramod’s economic slump began in 2006 when he signed his Global Steel Holdings as guarantor of debts for Bosnian coke producer GIKIL. GIKIL’s failed repayments were pursued by Moorgate Industries, which obtained the bankruptcy order.

Moorgate took proceedings to the Commercial Court seeking $166 million from Pramod, after which a settlement was reached where he agreed to make payments in part-satisfaction of a reduced sum.

Failing to meet the settlement terms, bankruptcy proceedings were initiated and Judge Catherine Burton in June 2020 issued an order for 139,786,656.43 pounds plus interest against Pramod Mittal.

Pramod has now proposed to pay 0.18 pence for every pound he owes.