Gupta Faces Intensified Scrutiny as Australian Regulators Step In

Liberty Steel founder’s troubles mount with device seizures and regulatory probes spanning Australia and the UK

A Deepening Global Investigation into Sanjeev Gupta

The embattled steel magnate Sanjeev Gupta is facing mounting legal and regulatory pressure as Australian authorities intensify their investigation into his business empire.

The Australian Securities and Investments Commission (ASIC) has reportedly taken possession of Mr Gupta’s mobile phone as part of a wider inquiry into Liberty Steel’s operations in the country. This development comes just days after Gupta’s core British operation, Speciality Steels UK (SSUK), was placed into compulsory liquidation.

What We Know So Far

Sky News reports that:

• ASIC issued a new demand for information from Liberty Steel in Australia.
• Mr Gupta’s personal mobile phone was seized by ASIC investigators.
• Other executives’ electronic devices may also have been confiscated (unconfirmed).
• No formal comments have been made by ASIC or the GFG Alliance regarding search warrants or further actions.

The regulatory clampdown in Australia follows a New South Wales Supreme Court order requiring three GFG companies to file overdue financial reports—a move signalling greater enforcement action in the region.

Trouble at Home: UK Liquidation and Legal Hurdles

Gupta’s British operations continue to unravel:

• Speciality Steels UK (SSUK), employing nearly 1,500 people, was handed to the Official Receiver following creditor action led by Greensill Capital.
• SSUK is the UK’s third-largest steel producer after Tata Steel and British Steel.
• Gupta is now actively attempting to repurchase SSUK, with financing said to be lined up through global investment giant BlackRock.

Despite the turmoil, GFG Alliance’s leadership maintains it has the right expertise and commitment to lead SSUK forward—claiming that their proposed restructuring plan would have protected jobs and attracted investment under a new governance framework.

A Broader Pattern of Financial Strain

Sanjeev Gupta’s GFG Alliance has faced growing scrutiny across multiple jurisdictions:

• In the UK, the Serious Fraud Office (SFO) continues to investigate Gupta’s firms.
• His prior appeals to the British government for financial support—both during the COVID-19 pandemic and more recently—have been rejected.
• Some reports suggest Mr Gupta may attempt to ring-fence SSUK under family ownership to ease investor concerns and improve governance standards.

Potential Impact on the UK Steel Sector and Local Economies

The collapse and potential rebirth of SSUK carry major implications:

• Prolonged liquidation may increase taxpayer burdens through settlement costs.
• Uncertainty threatens nearly 1,500 jobs and economic stability in South Yorkshire.
• A successful repurchase by GFG—especially with BlackRock’s involvement—could signal renewed confidence in British manufacturing.

Conclusion: More Questions Than Answers

While Mr Gupta presses ahead with his plan to regain control of SSUK, he faces intensifying scrutiny both domestically and abroad. The outcome of these legal battles could reshape the UK steel sector and determine the future of one of its most prominent industrial figures.

Whether investors, regulators, or the public trust in a GFG-led turnaround remains to be seen. But one thing is clear: the eyes of two continents are firmly fixed on what happens next.

Sources: (BBC.co.uk, Sky.com)