There are a few sad instances where a billionaire, who was formerly regarded as one of the richest men in the world, became bankrupt and had to rely on his wife and children for everyday costs. The business world is ruthless, and even the largest businesspeople may suffer losses.
The guy in question is Pramod Mittal, the brother of steel magnate lakshmi Mittal, who paid his creditors 2.5 billion pounds (about Rs 24,000 crore at the time) before being declared bankrupt in 2020.
Who is Pramod Mittal?
The brother of billionaire steel mogul lakshmi Mittal, Pramod Mittal was previously one of the wealthiest individuals in the united kingdom (UK). In 2020, London's Insolvency and Company court declared the 68-year-old bankrupt, citing a loan of more than 130 million pounds. He had previously spent Rs 550 crore on his daughter's wedding.
In addition to his father's debt of more than 170 million pounds, Pramod Mittal had announced a loan of 2,549,089,370 pounds. Mittal stated in his bankruptcy case that he had no personal income and that his only property at the time was a 45-pound property in Delhi.
Pramod Mittal claimed in a report at the time that his wife was covering his personal expenses, which came to between 2,000 and 3,000 pounds per month. He had borrowed 1.1 million pounds from his wife, Sangeeta, 2.4 million pounds from his son, Divyesh, and 1.1 million pounds from his brother-in-law, amit Lohiya, to repay his creditors.
According to the study, Mittal was giving his creditors only 0.18 paise for each pound of debt he took out.
How Pramod Mittal went bankrupt
One crucial choice that led to Pramod Mittal's demise was his role as a guarantee for a loan obtained by GIKIL, a Bosnian metallurgical business of which he was co-owner and chairman of the supervisory board. When the business failed to pay back the $166 million loan in 2013, Pramod Mittal was compelled to pay off the debt, which put him on the verge of going bankrupt.
The worst was to come, though, when Pramod Mittal and two other GIKIL personnel were detained on fraud-related charges in Bosnia in 2019. He claimed to have no income and to be dependent on his wife and kids to cover his daily costs when he was declared bankrupt in the UK a year later, in 2020.
Pramod Mittal is also charged with money laundering in india in connection with an alleged scam involving State Trading Corporation (STC) worth Rs 2,200 crore. 'Criminal breach of trust' is the charge against Mittal for not fulfilling his end of the bargain with STC.
Spent Rs 550 crore on daughter's wedding
The fact that Pramod Mittal once lavished an astounding Rs 550 crore on his daughter Shrishti Mittal's wedding to Dutch-Indian investment banker Gulraj Behl in Barcelona, Spain, in 2013 is unbelievable.
Interestingly, Pramod Mittal spent over 10 million pounds more on his own daughter Vanisha Mittal's 2004 wedding than his older brother lakshmi Mittal did.
Vanisha Mittal, the daughter of indian steel tycoon lakshmi Mittal, married British-Indian businessman amit Bhatia in 2004, setting a record for the most expensive wedding in the world at the time. This was twenty years before the extravagant Anant-Radhika wedding.
The guy in question is Pramod Mittal, the brother of steel magnate lakshmi Mittal, who paid his creditors 2.5 billion pounds (about Rs 24,000 crore at the time) before being declared bankrupt in 2020.
Who is Pramod Mittal?
The brother of billionaire steel mogul lakshmi Mittal, Pramod Mittal was previously one of the wealthiest individuals in the united kingdom (UK). In 2020, London's Insolvency and Company court declared the 68-year-old bankrupt, citing a loan of more than 130 million pounds. He had previously spent Rs 550 crore on his daughter's wedding.
In addition to his father's debt of more than 170 million pounds, Pramod Mittal had announced a loan of 2,549,089,370 pounds. Mittal stated in his bankruptcy case that he had no personal income and that his only property at the time was a 45-pound property in Delhi.
Pramod Mittal claimed in a report at the time that his wife was covering his personal expenses, which came to between 2,000 and 3,000 pounds per month. He had borrowed 1.1 million pounds from his wife, Sangeeta, 2.4 million pounds from his son, Divyesh, and 1.1 million pounds from his brother-in-law, amit Lohiya, to repay his creditors.
According to the study, Mittal was giving his creditors only 0.18 paise for each pound of debt he took out.
How Pramod Mittal went bankrupt
One crucial choice that led to Pramod Mittal's demise was his role as a guarantee for a loan obtained by GIKIL, a Bosnian metallurgical business of which he was co-owner and chairman of the supervisory board. When the business failed to pay back the $166 million loan in 2013, Pramod Mittal was compelled to pay off the debt, which put him on the verge of going bankrupt.
The worst was to come, though, when Pramod Mittal and two other GIKIL personnel were detained on fraud-related charges in Bosnia in 2019. He claimed to have no income and to be dependent on his wife and kids to cover his daily costs when he was declared bankrupt in the UK a year later, in 2020.
Pramod Mittal is also charged with money laundering in india in connection with an alleged scam involving State Trading Corporation (STC) worth Rs 2,200 crore. 'Criminal breach of trust' is the charge against Mittal for not fulfilling his end of the bargain with STC.
Spent Rs 550 crore on daughter's wedding
The fact that Pramod Mittal once lavished an astounding Rs 550 crore on his daughter Shrishti Mittal's wedding to Dutch-Indian investment banker Gulraj Behl in Barcelona, Spain, in 2013 is unbelievable.
Interestingly, Pramod Mittal spent over 10 million pounds more on his own daughter Vanisha Mittal's 2004 wedding than his older brother lakshmi Mittal did.
Vanisha Mittal, the daughter of indian steel tycoon lakshmi Mittal, married British-Indian businessman amit Bhatia in 2004, setting a record for the most expensive wedding in the world at the time. This was twenty years before the extravagant Anant-Radhika wedding.
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