Verdict on Mittal Group's USD 400-mn claim against Bosnia and Herzegovina likely in a month: Co official

New Delhi, Jun 4 (PTI) The verdict on the USD 400 million (around Rs 3,438 crore) international arbitration claim filed by industrialist Pramod Mittal, brother of steel tycoon Lakshmi Mittal, is likely to be announced within a month, an official of the Mittal Group said on Wednesday.

Mittal, the chairman of the Mittal Group -- a global conglomerate engaged in steel, energy, mining and infrastructure -- filed a USD 400 million international arbitration claim against the government of Bosnia and Herzegovina, citing serious breaches of the India-Bosnia Bilateral Investment Treaty (BIT) signed in 2006, the company official said.

"This is one of the strongest investor-state claims emerging from India in recent years. It goes beyond commercial loss -- it tests the credibility of BIT protection in fragile jurisdictions," the person said, requesting anonymity.

An e-mailed query to Mittal Group spokesperson remained unanswered.

The claim, filed under the UNCITRAL arbitration framework in early 2023 in Vienna, stems from the breakdown of a joint venture between Mittal's Global Steel Holdings Ltd and Bosnia's state-owned Koksno Hemijski Kombinat (KHK).

The partnership, launched in 2003, gave rise to Global Ispat Koksna Industrija Lukavac (GIKIL) -- a major coke producer employing over 900 people in northeastern Bosnia.

The official said over time, Mittal's majority stake and management rights were systematically eroded. In 2019, Mittal and other executives -- Paramesh Bhattacharyya, then General Director of GIKIL, and Rajib Das, Finance Director of GIKIL, were detained on allegations of financial mismanagement.

Mittal and both the executives were later released on bail, and no conviction has been registered to date, and no charges against them have been proven.

"This arbitration is not just about recovering losses. It reflects the risks investors face when legal safeguards are ignored in politically unstable economies," said a former director of GIKIL, who worked closely with both GSHL and Bosnian authorities.

Mittal's arbitration may also signal a broader shift in the strategy of Indian investors abroad -- more assertive, treaty-backed, and legally prepared, he said.

"This case could become a reference point for future BIT claims filed by Indian companies operating in post-conflict economies," he added.

With a career spanning over three decades, Mittal is known for identifying high-potential opportunities in emerging and transitional economies and helping to revive industrial infrastructure in post-conflict zones and under-capitalised regions.

The Mittal Group had operations or investments in over 15 countries, including India, Bosnia and Herzegovina, Nigeria, Bulgaria, Libya, Serbia, the Philippines, China, Egypt, and the UK. PTI SID TRB