Romania Launches Probe into Liberty Steel Amid Embezzlement Allegations
A serious blow to Sanjeev Gupta's already beleaguered empire, Liberty Steel is facing intense scrutiny in Romania over allegations of embezzlement and tax evasion. The investigation, led by the Romanian prosecutor's office, has resulted in raids on seven homes and the registered office of an unnamed company, sparking widespread concern about the tycoon's business dealings.
Gupta, once hailed as a savior of steel for his efforts to revitalize struggling metalworks, is now facing mounting pressure. His empire, which had previously spanned across the UK, Eastern Europe, and Australia, has seen significant unraveling since the collapse of lender Greensill Capital in 2021.
The Romanian authorities have uncovered a complex web of transactions that allegedly show Gupta's company embezzling funds intended for industrial investments to cover payments to affiliated entities without operational justification. The investigation focuses on seven alleged cases involving fictitious loan contracts, excessive sales of CO2 certificates required by EU regulations for heavy polluters like steelworks.
The most striking example cited in the probe is a €137m sale of CO2 certificates to Gazprom, Russia's state-owned gas company, which was later replaced with a loss-making transaction worth €154m. The money from these transactions was allegedly transferred to the accounts of Liberty Steel via a company in Singapore.
Gupta's business group has vigorously defended itself against these "unfounded allegations," stressing that Galați, where the Romanian operation is based, received substantial financial support and had its transactions vetted by independent external lawyers. However, the company acknowledges it would vigorously defend itself against these charges.
As Gupta continues to grapple with mounting challenges, his once-promising steel empire remains under intense scrutiny in multiple jurisdictions, raising concerns about corporate governance and compliance with regulatory requirements.
A serious blow to Sanjeev Gupta's already beleaguered empire, Liberty Steel is facing intense scrutiny in Romania over allegations of embezzlement and tax evasion. The investigation, led by the Romanian prosecutor's office, has resulted in raids on seven homes and the registered office of an unnamed company, sparking widespread concern about the tycoon's business dealings.
Gupta, once hailed as a savior of steel for his efforts to revitalize struggling metalworks, is now facing mounting pressure. His empire, which had previously spanned across the UK, Eastern Europe, and Australia, has seen significant unraveling since the collapse of lender Greensill Capital in 2021.
The Romanian authorities have uncovered a complex web of transactions that allegedly show Gupta's company embezzling funds intended for industrial investments to cover payments to affiliated entities without operational justification. The investigation focuses on seven alleged cases involving fictitious loan contracts, excessive sales of CO2 certificates required by EU regulations for heavy polluters like steelworks.
The most striking example cited in the probe is a €137m sale of CO2 certificates to Gazprom, Russia's state-owned gas company, which was later replaced with a loss-making transaction worth €154m. The money from these transactions was allegedly transferred to the accounts of Liberty Steel via a company in Singapore.
Gupta's business group has vigorously defended itself against these "unfounded allegations," stressing that Galați, where the Romanian operation is based, received substantial financial support and had its transactions vetted by independent external lawyers. However, the company acknowledges it would vigorously defend itself against these charges.
As Gupta continues to grapple with mounting challenges, his once-promising steel empire remains under intense scrutiny in multiple jurisdictions, raising concerns about corporate governance and compliance with regulatory requirements.
... like, I know Liberty Steel has been having some major issues lately 
, but embezzlement allegations? That's a whole different ball game 
... or is it? 
I mean, Gupta's group says the allegations are unfounded, but at the same time, they're trying to defend themselves against these charges 
... which makes me think maybe there's some truth to it 
? I don't know, man! 
The more I think about it, the more my mind is all over the place 
...
. I mean, Sanjeev Gupta's already got enough on his plate with Greensill Capital collapsing and all that drama 
. The fact that these funds were allegedly funneled to Gazprom is just wild... that's some serious Russia-tied shenanigans 
. Anyway, it'll be interesting to see how this all plays out in court 
. Hopefully, Gupta's team can get their act together and clear his name 
#CorporateGreed #EmbezzlementAllegations #SteelIndustryScandal
! It'd be awesome if it encourages more corporate responsibility and stricter regulations. Who knows, maybe Gupta's empire will come out stronger on the other side 
?
sanjeev gupta's situation seems super precarious right now... if these allegations are true, it would be a major black mark on his reputation and a huge loss for investors. 
the fact that he's trying to defend himself but acknowledging he'd do so anyway is pretty telling... either way, this whole thing is like a juicy soap opera - you just want to keep watching (or reading) to see how it all unfolds! 
. I mean, sure, he did help save the steel industry, but now he's being called out for allegedly siphoning off funds meant for industrial investments to cover payments to his own companies 
. It's like, come on, if you're gonna play with the big boys, you gotta follow the rules 
.
. I'm not saying Gupta's guilty or anything (although he should probably get a good lawyer ASAP), but it's clear that his company has been playing fast and loose with the law to avoid any real scrutiny 
.
. The steel industry (and the environment) needs people who are actually looking out for its best interests, not just lining their own pockets 
how could he be so reckless w/ all that cash? i mean idk what kind of math they were doin in india but it seems like he was just throwin it out the window 
the thing is, u can't just sweep this under the rug 4eva. the EU's got eyes everywhere & Romania ain't no joke 
we need answers 4 sure...can someone pls keep me posted on this drama unfoldin? 
! Sanjeev Gupta's cozy relationship with the Romanian authorities is giving everyone the heebie-jeebies 
i mean, u would think he'd be safe after all the yrs of reviving steelworks but nope, it looks like he's got some dirty laundry hidden in his accounts 
. fingers crossed that Sanjeev Gupta gets the comeuppance he deserves! 
. Can't have these rich tycoons cooking their books willy-nilly and then playing the victim when it all comes crashing down 
Like, they're not even getting the support from their own company anymore. It's like Gupta's empire is crumbling around him and taking everyone with him.
But, like, accountability has got to come somehow! We need more transparency and better corporate governance so that people like Gupta can't just keep getting away with their schemes. 
. First, Greensill Capital goes down, and suddenly Liberty Steel is under the microscope? It's like a domino effect, you know? And now this Romanian probe comes out of nowhere, alleging embezzlement and tax evasion? The timing is suspicious, if you ask me. Sanjeev Gupta's empire was already struggling, but this new development is gonna take it down a notch