Prateek Gupta offered to pay metals trader Trafigura US$15 million in letters of credit (L/Cs) to repair the "rapidly deteriorating trading relationship" between the Indian business mogul and the Switzerland-based metals trader, the Financial Times (FT) has reported.

Trafigura revealed earlier this month that it stands to lose US$577 million after discovering a "systematic fraud" committed by a group of companies connected to and apparently controlled by Gupta (DC World News, 13 February 2023).

Accusation and denial

Trafigura alleges systematic fraud by Gupta's companies over nickel cargoes which, according to the metals trader, consisted of little to no high-value nickel, while a considerable amount of low-value metal was substituted.

A robust response to the allegations is being prepared by the businessman according to his spokesperson, who says Gupta plans to challenge a US$625 million global freezing order on him and his firms imposed by a London court.

Bank investigation

The FT cites an affidavit filed in a London court in which Trafigura's former head nickel trader, Sokratis Oikonomou, describes how Gupta offered US$15 million in L/Cs from Mauritius-based Silver Bank. This offer was subsequently reduced to US$7 million.

The Bank of Mauritius, the country's central bank, is reportedly investigating Silver Bank, in which Gupta reportedly has an interest.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.