London Court Rejects Gupta’s Appeal in Nickel Fraud

Indian businessman Prateek Gupta has been refused permission to appeal by the High Court of Justice in London in a major fraud case involving global commodities trader Trafigura.

The court earlier ruled that Gupta defrauded Trafigura by supplying fake nickel cargoes instead of high-quality 99.8% pure nickel as promised in contracts. According to the judgment, Gupta and his companies made false and fraudulent representations that led Trafigura to enter into the agreements.

Trafigura, which is based in Geneva, accused Gupta of masterminding a fraudulent “Ponzi scheme.” The company said it received low-value or worthless materials instead of the agreed high-grade nickel shipments.

Gupta admitted that he did not deliver the promised high-grade nickel. However, he claimed that Trafigura employees were involved in designing the scheme. This allegation was denied by Trafigura’s former head nickel trader Sokratis Oikonomou, who was cleared of any wrongdoing.

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 stated that Trafigura’s former employees, including Oikonomou, were “wholly innocent of any wrongdoing.”

During a brief hearing on Thursday, Trafigura’s lawyer Nathan Pillow said the company is owed around $640 million, which includes approximately $140 million in interest.

Gupta is currently under a worldwide freezing order on his assets. Under this order, he has agreed to limit his monthly living expenses to £5,000, reduced from £20,000 per month.

The case began in November 2022, when Trafigura first received complaints about nickel cargoes it had sold. After conducting further inspections, the company recorded a $590 million financial charge and filed a lawsuit against Gupta and his companies in February 2023, describing the matter as “systematic fraud.”

Although the High Court has denied Gupta permission to appeal, he still has the option to apply directly to the Court of Appeal.