Singapore-based iron ore trader, Radiant World Corp and its founder Pinkesh Nahar are facing a $34-million lawsuit in Singapore's High Court, adding to mounting legal pressure on the commodity trader.

Trade-finance platform Incomlend Pte Ltd filed the claim on August 24, seeking to recover losses from the company and Nahar. Amit Sharma, managing director of private investment firm Tanas Capital, is also named as a defendant. Nahar is listed in corporate filings as a director of Tanas Capital.

The case against Radiant World Corp, the group's main operating unit, is listed as "tort of deceit conspiracy by unlawful means" — a civil action where a misrepresentation has been made and the victim seeks to recover losses. No further details were provided in the filing.

As of the filing date, neither the company nor the two defendants had secured legal representation. A further hearing is scheduled for September 29.

The lawsuit adds to legal action initiated by Mizuho Bank, which is seeking an injunction against Radiant World in Singapore's Supreme Court. Deutsche Bank and KBC Group have frozen some of Radiant World's Singapore bank accounts, while other lenders have suspended credit lines. Several major commodity traders, including Vitol Group and Cargill, have ceased doing business with the firm.

The US Department of Justice and the Commodity Futures Trading Commission are investigating transactions involving Radiant World and its creditors. Singapore police raided the company's local office last week and questioned employees. The police confirmed on August 20 that reports had been lodged and investigations were ongoing.

Radiant World has previously denied wrongdoing, stating it conducts its business to the highest commercial and legal standards. In a July statement, the company called the claims "inaccurate and unsubstantiated". More recently, it said it was engaging with relevant authorities and would not litigate the company's affairs through the media.

Incomlend is registered as a creditor of Radiant World Corp. Neither Incomlend nor Radiant World responded to requests for comment.