Axe threatens for Scottish steel workers as Sanjeev Gupta prosecuted for failing to file accounts

Steel tycoon Sanjeev Gupta is being prosecuted by Companies House for failing to file accounts for more than 70 companies listed in Britain.

In a move that has raised concerns over jobs in Mothewell and Lochaber, Mr Gupta is facing enforcement action from the UK’s business register for the late filing, which could result in a fine or being disqualified as a director.

It comes with Mr Gupta, who was once described as “the saviour of steel”, also facing the Gupta Family Group Alliance (GFG), the collection of companies headed by Gupta, being subject to a criminal investigation over fraud allegations linked to the collapse of main lender Greensill Capital in 2021.

Mr Gupta owns the Dalzell steel plant in Motherwell and the Lochaber aluminium smelter, which means the prosecution has now raised fears for workers.

Scottish Liberal Democrat economy spokesperson Willie Rennie said: “I am concerned for the fate of Gupta’s business empire and the workers in Motherwell and Lochaber.

“For years, his businesses have juggled unfiled accounts, questionable Scottish Government deals and Serious Fraud Office probes.

Liberal Democrat MSP Willie Rennie has expressed concerns | Getty Images

“Now I have been told that employees at the Motherwell steel plant are at home on 80 per cent wages with no work due to issues with cash flow and input prices.

“Every time I ask ministers questions on this, they insist they have had no contact and see no problem. So let me spell this out for them - a man who owes you millions of pounds in loans and could cost you tens of millions in clean-up costs is being prosecuted for his alleged failure to file accounts. What are you doing to secure the future of these businesses and ensure taxpayers are not left picking up the tab?”

Companies House has confirmed it was taking enforcement action, but did not comment further. Mr Gupta has pleaded not guilty.

A 2016 deal between Mr Gupta and the Scottish Government involved ministers guaranteeing the power purchase obligations of the smelter from the nearby hydroplant, with the businessman’s prosecution raising fresh concerns for ministers.

A GFG Alliance spokesperson said on behalf of the four directors and Gupta: “There are no underlying issues with our accounts and directors have taken all reasonable steps to resolve the situation. 

“We have finalised unaudited accounts for our UK businesses and have been in regular communication with Companies House. This legal process has no effect on any of our operations.”

The next hearing for the Companies House case is scheduled for January, with no date set for a trial.

A Scottish Government spokesperson said: “The Scottish Government acted quickly in 2016 to support a transaction involving Tata Steel and Liberty House to sustain 133 jobs in Scotland and in the same year provided the Lochaber Guarantee to protect jobs and promote investment in the long-term sustainability of the site in Fort William. 

“The Scottish Government maintains regular engagement with the GFG Alliance on the operations at both Dalzell and Lochaber.”