Argus Exposes Suspect Deals between Liberty Commodity & UttamGalva
Argus Media, citing certain documents, reported that GFG Alliance’s Liberty Commodities reportedly made multiple sales of nickel and iron ore pellet to
Argus Media, citing certain documents, reported that GFG Alliance’s Liberty Commodities reportedly made multiple sales of nickel and iron ore pellet to Uttam Galva between July 2014 and October 2015, raising questions about whether the transactions listed in the documents actually took place as these sales make no sense in the context of Uttam Galva's business. As a steel re-roller Uttam Galva's business was to buy hot-rolled coil, not nickel or iron ore pellets. Uttam Galva, currently facing bankruptcy proceedings, did not produce stainless steel, for which nickel is the raw material, or crude steel, where iron ore would be used.
Three of the deals for nickel, all done on 28 October 2015, listed Uttam Galva as the end customer, with Liberty sourcing the nickel from related company UBG Commodities, using financing provided by a fourth firm Westford Trade Services. These deals had a value of over USD 9.6 million and were on 120 days from bill of lading date payment terms, on a CFR Shanghai basis.
Mr Gupta was also a shareholder in Uttam Galva, which has been facing bankruptcy proceedings since October 2020 after India's National Company Law Tribunal agreed to admit an insolvency case against it, filed by the State bank of India. Mr Rajinder Miglani, former chairman of Uttam, was a director of Berkeley Commodities between 23 April and 28 October 2014, which used to be called Liberty Thamesteel and counts Gupta's associate Mukesh Kumar Vyas as a director.