Mittal Family Faces Legal Battle Over Allegations of Asset Stripping
In a significant legal development, Pramod Mittal, brother of steel magnate Lakshmi Mittal, is embroiled in a high-profile case in London's High Court. Allegations of fraudulent asset stripping have surfaced, claiming that Pramod diverted millions to his family instead of repaying his debts, which amount to $3.5 billion.
The lawsuit, brought forward by Global Steel Holdings, alleges that Pramod Mittal owes $216 million. It further claims that he and his family siphoned off $180 million from a subsidiary, with $81 million reportedly transferred to his wife and three adult children, who are based in London and have roles within the family's corporate structure.
Between September 2022 and February 2023, Global Steel Holdings received a $496 million settlement from the Nigerian government, yet creditors assert that funds intended for debt repayment were misappropriated. The court proceedings have revealed claims that Pramod Mittal appointed "yes-men" into the corporate hierarchy to facilitate the diversion of assets.
Counsel for Global Steel Holdings has stated that the Mittal family has a history of obfuscation and has relied on fabricated evidence to evade their financial responsibilities. In defense, Stephen Ryan, representing Pramod Mittal, has accused Global Steel of acting hastily while he was still under bankruptcy constraints, describing the legal actions as "extremely prejudicial" to Mittal.
As this case unfolds, the implications for the Mittal family and their business operations remain to be seen.
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