London, February 2nd (Argus) - The High Court of London recently ruled that Trafigura won the case against Indian businessman Prateek Gupta regarding the nickel goods fraud, and was required to bear approximately $500 million in liability. Trafigura has the right to cancel the transaction and receive compensation.
The court determined that Gupta and his controlled company, through false statements, claimed to deliver LME-grade nickel but actually provided low-value materials, constituting systematic and large-scale fraud, with an involved amount of approximately $500 million.
Trafigura had previously paid a huge amount of money for 91 batches of goods, but ultimately could only sell them as scrap metal, and after the incident was exposed, it made provisions for impairment and filed a lawsuit. The judgment also clearly stated that Trafigura's former traders Harshdeep Bhatia and Sokratis Oikonomou had no improper behavior, and rejected Gupta's accusations. This case has further drawn industry attention to the due diligence and trade financing risks in metal trading. Gupta still retains the right to appeal.
