Mittal and his family members had a "history of obstruction"
Britain’s biggest bankrupt tycoon has been accused of secretly funnelling £63 million to his relatives instead of settling debts from his collapsed business empire.
Pramod Mittal who once declared debts of £2.7 billion, has now been dragged into a High Court battle.
His former company, Global Steel Holdings, claims he and his family diverted tens of millions from a major payout to avoid paying creditors.
The Isle of Man-based firm claims Mittal owes the company more than £166 million.
Between September 2022 and February 2023, the company and its subsidiary split a £381.7 million settlement from the Nigerian government.
Of that £62.3 million allegedly went to his wife Sangeeta and their children Vartika, Shristi and Divyesh.
All four are accused of being closely tied to the business. The firm claims they live in London and each held positions or directorships in companies within the wider Mittal corporate network.
Pramod Mittal, the younger brother of steel magnate Lakshmi Mittal, gained a reputation for extravagance.
His daughter Shristi’s wedding in Barcelona reportedly cost £50 million. In 2023, his son Divyesh married Jake Prior in an event dubbed ‘The first Big Fat Indian Gay Wedding’.
On April 10, 2025, a High Court judge gave Global Steel permission to add Mittal to an ongoing civil claim over what it describes as “fraudulent and schematic asset stripping”.
Graeme Halkerston, representing the company’s liquidators, alleged Mittal seemingly put “yes” people into the company’s structure, telling the court Mittal’s two children Vartika and Divyesh were two such individuals.
Mr Halkerston added that Mittal and his family members had a “history of obstruction” and were willing to “rely upon fabricated evidence” to siphon assets from the firm’s creditors.
The court also heard that Mittal’s 98-year-old father, Mohan, gave him £153.9 million to help repay money owed to an Indian government agency, which reportedly helped get a criminal case dropped.
Mr Halkerston argued the family is still financially capable of helping Mittal fight the case. His brother Lakshmi runs ArcelorMittal and is worth an estimated £14.9 billion.
Stephen Ryan, counsel for the tycoon, said Global Steel acted with “extreme haste” and unfairness while his client was bankrupt and limited in his ability to act, adding:
“It is extremely prejudicial.”
Deputy Insolvencies and Companies Court Judge Daniel Schaffer said:
“He [Mittal] fights everything. What I am saying is he is not going to walk away from this.”
He also told the court Mittal’s father would help to pay for legal costs if requested.
Following his bankruptcy declaration, Mittal set out an individual voluntary agreement (IVA), where he agreed to pay 0.18p of every £1 he owed.
A judge later overturned IVA following allegations that many of the supposed debts were “shams” and created for a “fraudulent purpose”.
The case continues.
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