Steel tycoon Pramod Mittal has gone down into depths of unprecedented financial liabilities after a financial deal guaranteed by him collapsed. Pramod, who spent 50 million pounds on his daughter’s wedding in 2013, now claims that he owns only a small stretch of land in India.
The businessman says that the loans he originally took out have ballooned dozens of times over due to interest payments and the total liabilities now lie at 2.5 billion pounds, reports Daily Mail.
He says he now owes £170m to his 94-year-old father, £1.1m to his wife, Sangeeta, £2.4m to their 30-year-old son Divyesh and another £1.1m to his brother-in-law Amit Lohia, 45.
Mr Mittal said: ‘I have no personal income. My wife is financially independent from me. We have separate bank accounts and I have very limited information regarding her income’.
The roots of Pramod’s current troubles date back 14 years, when he agreed to act as a guarantor for the debts of a coke producer in Bosnia known as GIKIL, a partnership between his Isle of Man-registered Global Steel Holdings and the Bosnian state.
GIKIL subsequently failed to make repayments, trapping him in a predicament. That debt was then pursued by a company named Moorgate Industries, which obtained the bankruptcy order, according to the mail.
It is reported that Pramod’s brother and the promoter of Luxembourg-based Arcelor Mittal steel business, Lakshmi Mittal could easily bail him out even though the sums are huge. Lakshmi’s net worth is fixed somewhere around $10 billion.
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