A High Court judge has frozen £150 million of assets belonging to Sanjeev Kumar, the owner of the collapsed Prax Lindsey oil refinery, whose whereabouts remain unknown. The freezing injunction, granted in July, prevents Kumar from removing assets from England and Wales or selling them, with penalties including imprisonment or asset seizure for non-compliance.
The companies suing Kumar are seeking damages for alleged breach of director duties, misrepresentation, and inducing breach of contract. The claims relate to a £783 million securitisation facility that funded Prax companies, which administrators say was at the heart of the group's failure. The scale of damages is yet to be assessed.
Kumar and his wife Arani, who co-owns the business, are believed to have left the UK for Dubai shortly after the refinery entered administration in late June. The couple have taken approximately £11.5 million in pay and dividends since buying the refinery from Total in 2021.
The freezing order allows Kumar to spend £2,500 per week on living expenses and reasonable sums on legal advice. He was also ordered to provide details of all assets worth over £50,000. Alternatively, he could pay £150 million into court or provide alternative security.
The collapse of the Lindsey refinery, which once supplied 10% of UK fuel, has sparked protests from Unite union, who blame government inaction. Energy minister Michael Shanks has called on Kumar to support hundreds of workers facing redundancy.
