Why Pramod Mittal Gets Angry

Posted: Sunday, Jan 05, 2003 at 0000 hrs IST
Updated: Sunday, Jan 05, 2003 at 0000 hrs IST

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Mumbai, January 4:: Rs 4,790 crore and the Mittals were negotiating a restructuring proposal. Yet, the Mittals quietly transferred the property to Ispat Industries at Rs 99 crore (market sources say that the price difference covered the interest cost on the original price), ensuring that their private investment company lost no money.
The institutions were left bleating in protest, but did nothing about it, because prices had crashed almost 50 per cent and selling the asset would only cause a loss. In the last few years, the Mittals have built a super-luxury apartment building on the plot and hope to make money on its sales. It is now up to the institutions to ensure that the proceeds are properly accounted in IIL’s books.

But Ispat did not end up in a sprawling mess of big borrowings because of the global downturn in steel. Like the other steel magnates, their big spending habits and large-scale diversion of funds to other projects is at the root of their problems. When the Mittals launched their furious growth and diversification plans in India, they were a joint family comprising ML Mittal and his three sons Laxmi Nivas, Pramod and Vinod. The group had acquired a reputation of acquiring a sick steel mill in Trinidad cheap and turning it around. They were also reputed to have powerful political friends in all the countries where they worked their magic.

So, when...

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Why Pramod Mittal Gets Angry

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