The Adani Group denied utilizing ‘opaque’ Mauritius funds to trade its publicly listed equities on Thursday. An organization funded by George Soros and Rockefeller Brothers Fund made new allegations months after a US short seller wiped out close to USD 150 billion in value of Adani group stocks with allegations of accounting fraud, stock price manipulation, and improper use of tax havens by billionaire Gautam Adani’s ports-to-energy conglomerate.
Adani Group denies all Hindenburg claims.
The corporation alleged that the claims were based on closed DRI cases from a decade ago that investigated over invoicing, financial transfers, linked party activities, and FPI investments. The transactions were legal and no overvaluation was found by an impartial adjudicating body and an appellate panel. Our case was resolved in March 2023 by the Hon’ble Supreme Court of India. Since there was no overvaluation, these financial transfer claims are irrelevant.
Note that SEBI is investigating these FPIs. The Supreme Court-appointed Expert Committee found no evidence of MPS violations or stock price manipulation. Unfortunately, several outlets that asked us did not publish our entire response.
Other authorities are investigating these short sellers, who want to benefit by pushing down our stock prices. The Honourable Supreme Court and SEBI are overseeing these cases, therefore respect the regulatory process. Our disclosures and corporate governance norms are reliable, and we trust due process. Given these circumstances, the timing of these news stories is suspicious, mischievous, and spiteful, and we reject them.
OCCRP uncovered at least two incidents where “mysterious” investors acquired and sold Adani shares through offshore companies after reviewing files from numerous tax havens and internal Adani Group correspondence.
OCCRP claimed that Nasser Ali Shaban Ahli and Chang Chung-Ling, who have longstanding business ties to the Adani family and served as directors and shareholders in Group companies and firms associated with Gautam Adani’s elder brother Vinod Adani, “spent years buying and selling Adani stock through offshore structures that obscured their involvement – and made considerable profits in the process.”It said the records “show that the management company in charge of their investments paid a Vinod Adani company to advise them in their investment”.
Adani strongly denied “recycled allegations” and labeled them “yet another concerted bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report”. “The Directorate of Revenue Intelligence (DRI) investigated over invoicing, financial transfers, linked party transactions, and FPI investments a decade ago.
The transactions were legal and no overvaluation was found by an impartial adjudicating body and an appellate panel.
We won the case in March 2023 when the Supreme Court of India decided. Since there was no overvaluation, these charges about financial transfers are irrelevant “stated. The OCCRP report stated that the foreign portfolio investors “are already part of the investigation by the Securities and Exchange Board of India (SEBI)”. “As per the Hon’ble Supreme Court’s Expert Committee, there is no evidence of any MPS violation or stock price manipulation.”
“Many authorities are investigating these short sellers, who want to profit by pushing down our stock values. The Supreme Court and SEBI are overseeing these cases, therefore respect the regulatory process “said.
We trust the due process of law and our disclosures and corporate governance. Given these factors, the timing of these news stories is suspicious, mischievous, and spiteful, and we reject them.” On August 24, PTI reported that the Soros-funded investigative reporting network, founded by 24 non-profit investigative centres throughout Europe, Africa, Asia, and Latin America, plans to publish new claims against a big Indian business.
OCCRP inquired if Ahli and Chang represent Adani promoters. “If so, their stake in the Adani Group would mean insiders owned more than the 75% allowed by law,” it added, violating Indian listing regulations. There was no proof Chang and Ahli’s investments came from the Adani family, but its inquiry indicated “is evidence” that their trading in Adani shares “was coordinated with the family”.
It stated, “The Adani Group’s rise has been staggering, growing from under USD 8 billion in market capitalization in September 2013—the year before Modi became prime minister—to USD 260 billion last year.”
Transportation and logistics, natural gas distribution, coal trade and production, electricity generation and transmission, road building, data centers, and real estate are among the conglomerate’s many activities.
