Meet Pramod Mittal: The Man Who Spent Rs 550 Crore on His Daughter’s Wedding and Went Bankrupt
Pramod Mittal, once a celebrated businessman and the chairman of Ispat Industries Limited (now JSW Ispat Steel), faced a dramatic fall from grace. Known for his extravagant lifestyle, including spending a staggering ₹550 crore on his daughter Shristi’s wedding in 2013, Pramod’s life took a turn for the worse when he was declared bankrupt in 2020. Here’s a closer look at his rise, fall, and connection to one of India’s wealthiest families.
The Lavish Lifestyle
Pramod Mittal, brother of steel tycoon Lakshmi Mittal, was once among the richest men globally. His flamboyant spending was the talk of the town, with the ₹550 crore wedding of his daughter serving as a prime example. The extravagant event featured opulent decorations, lavish ceremonies, and a guest list of international elites.
Bankruptcy and Legal Troubles
Declared Bankrupt in 2020
- In June 2020, a London court declared Pramod Mittal bankrupt.
- He reported owing over 130 million pounds (approximately ₹1,200 crore) to creditors.
- His financial downfall was attributed to business mismanagement and failed guarantees for international ventures.
Limited Assets
- In his bankruptcy filing, Pramod claimed he had no personal income.
- The only property listed under his name was a modest asset worth just ₹45 in Delhi.
Fraud Charges in Bosnia
- In 2019, Pramod and two other officials from GIKIL, a Bosnian coke producer, were arrested on charges of fraud.
- His Global Steel Holdings had guaranteed the debts of GIKIL, a decision that backfired when GIKIL failed to repay its obligations.
The Fall of a Magnate
Pramod’s downfall is a cautionary tale of financial overreach and risky business decisions. Despite his once-formidable wealth, his consent to act as a guarantor for GIKIL’s debts became a turning point. The failed repayments to a London-based steel trading guarantor firm left Pramod mired in financial and legal trouble.
The Stark Contrast: Lakshmi Mittal
While Pramod faced financial ruin, his brother Lakshmi Mittal remains one of India’s richest individuals. As of 2024, Lakshmi Mittal boasts a net worth of $15.5 billion, according to Forbes. The stark contrast between the brothers’ fortunes highlights the divergent paths their business decisions led them down.
Important Insights from Pramod Mittal’s Story
- Risky Guarantees Can Backfire:
- Pramod’s decision to guarantee debts for GIKIL was a major factor in his downfall.
- Such guarantees can expose even the wealthiest to financial ruin if not handled prudently.
- Financial Overreach:
- Lavish spending, like the ₹550 crore wedding, can quickly erode wealth without sustainable financial planning.
- Business Mismanagement:
- Poor oversight and risky ventures led to mounting debts that eventually became insurmountable.
- Family Dynamics:
- Despite Pramod’s downfall, his brother Lakshmi Mittal’s success underscores how different management approaches can yield vastly different outcomes.
Pramod Mittal’s story is a reminder that immense wealth can be fleeting without careful financial planning and risk management. His extravagant lifestyle, risky business decisions, and eventual bankruptcy stand in stark contrast to his brother Lakshmi Mittal’s enduring success. The tale of the Mittal brothers is not just a story of riches but also a lesson in resilience, prudence, and the perils of unchecked ambition.
