Anushka Sharma –
Published on: November 24, 2021 at 19:20 IST
A London court has ordered an offshore family trust of billionaire steel magnate Lakshmi Mittal’s family to reveal its secret trust deeds and related papers.
On Monday, a UK high court judge ordered the disclosure of the Prasan Trust’s trust deeds and other documents in the British Virgin Islands (BVI) after Giselle McGowan, representing Moorgate Industries UK Ltd (Moorgate), which is owed £139 million (Rs 1,384 crore) plus interest by Pramod Mittal, Lakshmi Mittal’s younger brother, claimed there were “material irregularities” in Mittal’s IVA (individual voluntary arrangement
Pramod is only required to reimburse Moorgate about £250,000 under the terms of the IVA (Rs 2.5 crore).
McGowan told the insolvency and companies court (ICC) that Moorgate believed Pramod Mittal had not properly set out his assets in the IVA, that he had not disclosed that he was a beneficiary of the Prasan Trust, that the IVA nominees had failed to properly investigate his assets and allowed four creditors, including his largest creditor, Direct Investments Ltd (DIL) in the BVI, to be listed as unassociated creditors when they were associated with Pramod.
“There is evidence Mr Mittal does exercise control over the Prasan Trust and DIL and yet DIL was allowed to vote on the IVA as an unassociated creditor,” she said
ICC judge Catherine Burton said, “It is an important piece of evidence which will allow the court to reach a conclusion on whether the creditors voting on the IVA were associates or not. I am satisfied the trust deed and associated documents should be made available for inspection at a substantive hearing next year.”
To protect trustees and beneficiaries not before the court, she said they would restrict to a very limited number of people. And Pramod was ordered to pay Moorgate’s costs.