Pramod Mittal firms pay Rs 2,200 crore to STC

Kolkata: Pramod Mittal owned Global Steel Holdings Limited (GSHL), Global Steel Philippines Inc. (GSPI) paid up their entire dues of Rs 2,210 crore to the state-run State Trading Corporation of India Limited (STC) and thereby Mittal and his family members have come out of all criminal cases and look-out notices against them.

NRI businessman Mittal, younger brother of steel baron Lakshmi Mittal, was facing multiple court proceedings in India and abroad in connection with his dues to STC.

Interestingly, GSHL, GSPI and the STC were having a long-standing business relationship from September 2003. However, the Mittal-owned companies claimed that because of an unprecedented meltdown in the steel industry and depression in the world economy during 2008-2010, GSPI suffered huge losses, and consequently, a substantial amount became due and payable to STC.

Following conciliation proceedings between GSHL, GSPI and STC, a sum of Rs 1,605 crore, inclusive of principal and interest at the rate of 13.5 per cent per annum on USD benchmark rates, was awarded to STC and was to be paid by GSHL/GSPI as principal debtors and Pramod Mittal as a guarantor.

Mittal has now paid Rs 2,210 crore to STC, including Rs 1,605 crore of principal amount as well as post award interest, in full and final settlement of STC's claim. Subsequent to this payment, no amount is due and payable to STC by GSHL, GSPI or Pramod Mittal.

The Supreme Court has, therefore, quashed all criminal cases and lookout notices against the Mittal, his wife and children. A bench of Justices Abhay Manohar Sapre and Indu Malhotra also quashed any lookout notices that may have been issued against Mittal and his family by these agencies, besides 11 complaints of cheating and criminal breach of trust pending in a lower court in Delhi.

STC has also agreed not to pursue winding up proceedings against GSHL in the Isle of Man court.

The SC bench invoked its extraordinary powers to quash all proceedings.