‘No Real Defence’: How the Dispute Unfolded
The legal battle traces back to November 2022, when Trafigura began receiving complaints regarding nickel cargoes it had sold. Subsequent inspections uncovered discrepancies, prompting the company to book a $590 million charge and file suit in February 2023 over what it characterized as “systematic fraud.”
During trial proceedings that wrapped up in December, Trafigura argued Gupta had a history of questionable dealings and alleged he diverted funds from the scheme to prop up struggling business ventures.
Gupta, testifying remotely from Dubai, contended that Trafigura itself had engineered a complex “merry-go-round” of transactions aimed at bolstering its profile in the nickel market. His legal team said the arrangement involved more than 500 trades totaling $3.3 billion.
But Trafigura’s counsel dismissed that narrative as an elaborate attempt to obscure admitted misconduct, calling Gupta’s testimony “implausible, inconsistent … and plainly incredible.”
Judge Saini echoed that skepticism in his ruling, stating that “having no real defence to the fraud claim, Mr Gupta decided to go ‘on the attack’ by inventing the story of the arrangement.”
The judgment closes a high-stakes chapter in one of the commodities market’s most closely watched fraud cases — though recovery efforts, like the echo of a struck gavel, are likely far from over.
