UK businessman sues LN Mittal over Nigerian deal: Report

UK’s largest rice businessman and founder of Veetee Rice, Moni Varma has sued steel tycoon Lakshmi Mittal alleging the latter to have failed to pay commission owed to him for securing oil blocks in Nigeria through his political contacts in the country, The Guardian reported on Saturday.

According to the report published on Saturday, Varma claims to have facilitated a deal in 2006 for Mittal to gain access to two unexplored oil fields in the Niger Delta after arranging a meeting with former Nigerian president Olusegun Obasanjo.

Though Mittal’s office could not be reached for a comment, his legal have been quoted in the report as saying, “We are aware of the case, in relation to which we believe there are no grounds and which we intend to defend vigorously.”

Mittal’s joint venture with Indian ONGC Videsh Ltd (OVL) was successful in its bids for two licences for 10 years in downstream projects in Nigeria. The estimated combined yield of the blocks was 650,000 barrels a day and the value of the downstream projects is $6 billion. Varma has claimed that Mittal had agreed to “cover” him for his efforts with a commission of 5-15 per cent.

According to the writ, Mittal is also alleged to have agreed to pay Varma $5 million, which has been turned down by Varma. The Middlesex-based businessman, Varma, who is also Britain’s biggest rice traders, said he had been let down by Mittal. “I am saddened but I have been left with no choice but to issue court proceedings against Lakshmi to recover sums that are due to me,” Varma said according to the report.