Two companies controlled by a member of the UAE royal family funded a significant portion of Prateek Gupta’s defence against a successful fraud claim by Trafigura, the global commodity trader has told a London court.
London’s High Court found Gupta liable for a fraudulent nickel trading scheme targeting Trafigura in January, and ordered the Indian businessman to pay the trader damages that have since been calculated at just over US$700mn.
At a court hearing on February 26, Trafigura said in written submissions that Gupta’s lawyers had been “funded, in significant part” by Anza Capital Investment LLC and Nomas Global Investments LLC-SPC.
Both companies are controlled by a member of the Abu Dhabi royal family, Sheikh Mohammed Bin Sultan Bin Al Nahyan, Trafigura’s barrister Nathan Pillow said at the hearing.
Anza provided a £3mn facility to fund the defence, which was later novated to Nomas, Pillow said, citing a document sent to Trafigura by Gutpa’s lawyers, which he said was signed by the sheikh.
The initial facility included funding for some of Gupta’s companies that are defendants in the case, while the novated agreement only covered Gupta, the court heard.
“My clients wanted to know why the Abu Dhabi royal family was advancing money to Mr Gupta,” Pillow told the court, referring to questions sent to Gupta’s legal team throughout the proceedings, which began in 2023.
The lawyer said agreements Trafigura had seen suggested the UAE companies could be repaid if a worldwide freezing order against Gupta was lifted and he was awarded damages.
Pillow told the court there were “commercial oddities” with the deals, because litigation funders typically back claimants, rather than defendants.
On its website, Anza describes itself as a private investment firm that offers services including corporate loans, trade finance and treasury and cash management.
Anza and the Abu Dhabi media office did not immediately respond to requests for comment from GTR.
The financial support for Gupta’s defence has become a central point for Trafigura as it seeks to trace his assets to enforce the English judgment. The final amount of damages has yet to be determined but Trafigura describes it as “north” of half a billion US dollars.
Gupta’s new legal team did not directly address Pillow’s comments about funding in court.
Gupta also applied to the court for permission to appeal January’s judgment, which was denied by Judge Pushpinder Saini.
A spokesperson for Trafigura said: “We welcome today’s ruling, which holds Mr Gupta liable for c. US$700mn, plus legal costs. Trafigura intends to take steps to enforce the judgment and pursue recovery of the sums awarded.”
