Indian Businessman Refused Permission To Appeal In Trafigura Nickel Fraud Suit

Indian businessman Prateek Gupta was refused permission by London's High Court on Thursday to appeal against a ruling that he defrauded commodities trader Trafigura over fake nickel cargoes.

Geneva-based Trafigura alleged Gupta was the mastermind of a fraudulent "Ponzi scheme" in which he and his companies agreed to provide high-quality 99.8% pure nickel but delivered low-value or even worthless materials instead.

Gupta accepted he did not deliver high-grade nickel cargoes but says Trafigura staff devised the scheme, something Trafigura's former head nickel trader Sokratis Oikonomou denied.

Judge Pushpinder Saini ruled last month that Trafigura was induced to enter into contracts "by false and fraudulent representations" made by Gupta and his companies.

The judge also said Trafigura's former employees, including Oikonomou, were "wholly innocent of any wrongdoing".

Gupta sought permission to appeal that ruling and was refused, but can still apply directly to the Court of Appeal.

Trafigura's lawyer Nathan Pillow said at Thursday's brief hearing that Trafigura was owed around $640 million in total, including $140 million in interest.

Gupta is subject to a worldwide freezing order over his assets and agreed to limit his living expenses under that order to 5,000 pounds ($6,763.50) a month, from 20,000 pounds a month.

Last year's trial, which concluded in December, was the culmination of events that began in November 2022, when Trafigura first received complaints about cargoes it had sold.

The discovery prompted Trafigura to carry out further inspections, book a $590 million charge and then sue Gupta and his companies in February 2023 for what it then described as "systematic fraud".

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)