Trafigura’s Legal Battle with Prateek Gupta Intensifies

The payout to Trafigura in its prominent fraud case against tycoon Prateek Gupta has surged by nearly 50%, now totaling $700 million.

On Thursday, the Indian businessman was denied permission to appeal a London High Court ruling from last month, which stated that Trafigura had been “the victim of a massive fraud devised and perpetrated by Prateek Gupta.”

Initially, the court had determined that Mr. Gupta owed $500 million in damages to Trafigura; however, this figure was raised by 40% to around $700 million after the latest hearing, which includes $140 million in interest.

Gupta could have filed a direct challenge with the Court of Appeal against the ruling.

“We appreciate today’s judgment holding Mr. Gupta accountable for about $700 million along with legal costs,” Trafigura stated following the hearing, adding that it would pursue enforcement of the ruling and seek to recover the awarded amounts.

The firm estimated a loss of approximately $600 million due to schemes executed by Mr. Gupta and his affiliated companies, featuring shipments of nickel that were reportedly filled with lower-value materials instead.

Trafigura’s legal representatives informed the court that the Singapore-based entity was also interested in understanding the financial contributions from two Emirati firms towards Mr. Gupta’s legal expenses.

Nathan Pillow KC, representing Trafigura, indicated that both Nomas Global Investments and Anza Capital Investments seemed to be under the influence of Sheikh Mohammed bin Sultan bin Hamdan Al Nahyan from Abu Dhabi.

He remarked, “My client understandably wants to know the reasons behind the Abu Dhabi royal family financing Mr. Gupta.”

Trafigura stated in its legal documents that it had “repeatedly requested information regarding the terms of the funding,” yet Mr. Gupta had offered only “patchy” responses.

Currently, Trafigura is contemplating withdrawing funds from the two companies, as indicated in their filing.

In a separate filing, Mr. Gupta’s legal team noted that his earlier attorneys had shared a copy of the funding agreement between Mr. Anza and Mr. Nomas.

The companies have not provided a timely response to inquiries regarding this matter.

Additionally, the court approved a request from Trafigura to reduce Ms. Gupta’s monthly living expenses from £20,000 to £5,000, a move that Mr. Gupta’s legal team did not dispute.

During last year’s trial, Mr. Gupta suggested that several individuals associated with Trafigura were complicit in the fraudulent activities. However, Judge Saini dismissed his claims as non-credible, affirming that the employees were “entirely innocent of any wrongdoing.”

On Thursday, Trafigura alleged that Mr. Gupta had taken steps to hinder the investigation, including attempting to delay the inspection of shipments and even “faking a serious medical emergency in November 2022.”

According to the trade group, he claimed to be “in intensive care following a heart attack and heart surgery” as a means to “buy time.”

Fox Williams, the law firm currently representing Mr. Gupta, chose not to comment following the hearing.

Notably, the legal team that defended Mr. Gupta during last year’s trial resigned shortly before the verdict was rendered in January.