Resignations not specific to Gontermann-Peipers, are part of promoters' strategy to exit from the Board positions in Ispat group companies
Pramod Mittal, the younger brother of global steel tycoon Laxmi Mittal, has quit from the listed Indian corporates that controlled by his Ispat group.
Pramod, who lives in London and is now being hunted by the Enforcement Directorate, has resigned from the post of chairman of Gontermann-Peipers, a Kolkata-based company which makes rollers for steel mills, among other products.
The younger Mittal, along with his younger daughter Shristi Mittal has resigned from the Board, the company said on Monday.
The resignations are not specific to Gontermann-Peipers, but are part of the promoters' overall strategy to exit from the Board positions in the Ispat group companies controlled by Pramod along with his brother Vinod Mittal, a company executive indicated.
"It is nothing to do with us alone. Pramod Mittal has earlier resigned from the Board of Balasore Alloys last year and has now resigned from the company as well," Dwijen Lahiri, whole time director of Gontermann-Peipers told DNA Money when asked about the exit of the chairman.
Just about a year back, Pramod resigned from the Board of Balasore Alloys, the biggest and the better entity of the group, one of the largest producers of ferrochrome in the country, having captive chrome ore mines and supplies to stainless steel producers.
Gontermann, however, is closed for months with unpaid dues to authorities and bankers as well.
The development comes just as Gontermann has been dragged to the Kolkata Bench of National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code by one of its operational creditors, Ankur Khandelwal.
NCLT is yet to accept the case and next hearing has been fixed for August 31.
Pramod and Vinod have operated independently of their famous elder brother Laxmi Mittal.
Based out of London, the younger Mittal siblings controlled the Indian operations but exited primary steel-making business when they sold off their majority holdings in Ispat Industries in 2010 after failing to successfully operate the Dolvi, Maharashtra-based steel plant.
Following that, the group was left with Gontermann-Peipers as well as Balasore Alloys, Ispat Metallics and Ispat Profiles in India.
These apart, their holding outfit, Isle of Man-based Global Steel Holdings has operations in Bulgaria, Nigeria and Zimbabwe.
But back home, the Mittals are in trouble.
Earlier this year, Pramod's holding outfit was accused of defrauding the exchequer of Rs 2,112 crore in a deal with State Trading Corp.
AMID TROUBLES
- Pramod Mittal earlier resigned from the Board of Balasore Alloys last year
- Earlier this year, Pramod’s holding outfit was accused of defrauding the exchequer of Rs 2,112 crore
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Pramod Mittal")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}