New Delhi/London, Oct 7 (SocialNews.XYZ) Indian born British billionaire Sanjeev Gupta is at the centre of a controversy in the UK as companies linked to him which employ just 11 persons have received millions of pounds in government-guaranteed loans.
The Financial Times reported that SoftBank-backed Greensill Capital has provided tens of millions of pounds of UK government-guaranteed loans to two companies associated with British steel magnate Sanjeev Gupta which employ just 11 people.
As per the report, Greensill, which employs former Prime Minister David Cameron as an adviser, was approved in June to be a lender through the UK's Coronavirus Large Business Interruption Loan Scheme (CLBILS), which offers borrowers a maximum off 200 million pound in debt, with the government on the hook for 80 per cent.
The London-based lender then provided funding through the scheme to two metals trading businesses linked to Gupta, according to the report.
While the two businesses have annual revenues of $588 million and $493 million, respectively, well above the 45 million pound minimum threshold to qualify for CLBILS, they collectively employ just 11 people in the UK, the FT report said.
Greensill, which counts SoftBank's Vision Fund as a main shareholder, has in recent years provided billions of pounds of financing to Gupta's so-called GFG Alliance -- a loose collection of family-owned businesses in everything from metals to banking which have expanded rapidly through takeovers to reach a turnover of $20 billion, the FT report said.
Gupta, 49, is an Indian origin British steel magnate. He owns the Liberty House Group, one of UK's largest steel manufacturers.
Liberty House has unsuccessfully tried to bag Indian companies like Amtek Auto, ABG Shipyard and Bhushan Power through the insolvency and bankruptcy process. It managed to acquire Adhunik Metaliks and Zion Steel.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz