LONDON, Feb 24 (Reuters) – Indian businessman Prateek Gupta plans to problem a $625 million international freezing order on him and his companies imposed by a London courtroom, his spokesperson stated on Friday.
Commodity dealer Trafigura, which sought the order, stated on Feb. 9 that it had booked a $577 million cost regarding what it alleges is “systematic fraud” by Gupta’s corporations over nickel cargoes.
“A strong response to the allegations is being ready,” the spokesperson for Gupta stated in an e mail.
“We intend to file an utility to take away the freezing order on or earlier than April 6.”
A London courtroom imposed the freezing order, dated Feb. 8, on financial institution accounts and different property tied to Gupta and 7 corporations Trafigura stated are managed by Gupta, together with these in Britain, Singapore, Malaysia and Switzerland.
That order was in power till right this moment’s listening to.
Excessive Court docket choose Robert Shiny on Friday stated he agreed to make an amended order in a quick listening to on the case, with out giving particulars.
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A courtroom doc filed by Trafigura for Friday’s listening to argued that the freezing order ought to be prolonged and stated that the dealer had agreed with Gupta’s legal professionals on an April 6 deadline for difficult the order.
A supply with data of the state of affairs stated the freezing order was prolonged on Friday, however didn’t say for a way lengthy.
In courtroom papers submitted beforehand, the Geneva-based dealer had stated it started to suspect in October final 12 months that round 25,000 tonnes of steel bought by Gupta’s companies will not be high-grade nickel, and commenced inspecting greater than 1,000 delivery containers.
Earlier in February, Trafigura informed the choose in a closed-door listening to that a number of the first containers inspected have been discovered to comprise carbon metal, which is price a fraction of the worth of nickel.
The courtroom papers for Friday’s listening to additionally stated Trafigura had obtained freezing and disclosure orders in opposition to defendants in native courts within the Cayman Islands, Singapore and Malaysia.
The doc criticised Gupta’s corporations as thus far offering “very restricted” and “wholly insufficient” disclosure relating to property.
“Asset disclosure…leaves unanswered the central query of what has turn into of the very massive sums of cash which Trafigura has paid (defendants) in relation to the cargoes,” the doc stated.
Gupta’s spokesperson stated: “Our disclosure has not been insufficient. It wholly complies with the courtroom order.”
Trafigura stated it ended up inspecting 156 out of 1,104 containers by the point it filed courtroom papers for the unique freezing order, none of which contained nickel.
Extra reporting by Pratima Desai and Polina Devitt; Modifying by Alexander Smith, Kirsten Donovan
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