On September 12, Hindenburg Research, a prominent US-based short-seller, made explosive new allegations against the Adani Group, asserting that Swiss authorities have frozen over $310 million in six bank accounts linked to the conglomerate.
This move is part of a broader investigation into potential money laundering and securities fraud activities, which Hindenburg claims has been ongoing since at least 2021. This revelation is the latest in a series of challenges faced by the Adani Group, led by billionaire Gautam Adani, following Hindenburg’s earlier damning report released in January 2023.
In a post shared on X (formerly Twitter), Hindenburg referenced a report from Swiss media outlet Gotham City, highlighting that the Geneva Public Prosecutor’s Office has been scrutinizing alleged financial misconduct associated with the Adani Group well before the activist investor’s initial accusations. The report details that prosecutors uncovered that a proxy for Adani had invested in opaque funds based in offshore territories like the British Virgin Islands, Mauritius, and Bermuda, which reportedly held a significant proportion of Adani stocks.
The Gotham City report emphasized that a ruling from the Federal Criminal Court (FCC) indicates ongoing investigations that predated Hindenburg’s involvement. It states, “More than $310 million belonging to an alleged front man for billionaire Gautam Adani is sequestered in six Swiss banks.” The Swiss Office of the Attorney General is now said to be overseeing the matter following media revelations regarding the alleged financial irregularities.
In response to these serious claims, the Adani Group issued a statement vehemently denying any wrongdoing. “We unequivocally reject and deny the baseless allegations presented,” the company stated. They maintained that they have no involvement in any Swiss court proceedings and emphasized that none of their accounts have been subject to seizure by any authority.
Furthermore, the group described the sudden resurgence of these allegations as “preposterous, irrational, and absurd,” framing it as a coordinated effort to damage their reputation and financial standing.
The statement asserted, “We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws.”
Despite the ongoing legal scrutiny, the Adani Group positioned itself as committed to transparency and compliance with all regulatory frameworks.
The recent developments are amplified by prior allegations from Hindenburg Research that suggested potential conflicts of interest involving the Securities and Exchange Board of India (SEBI) and its chairperson, Madhabi Puri Buch.
Questions were raised regarding her investment stakes in offshore funds linked to the Adani Group.
Both Buch and the Adani Group have firmly dismissed these allegations, insisting on their legitimacy and adherence to legal standards.
Since Hindenburg Research first attacked the Adani Group, the repercussions have been felt deeply, triggering a significant sell-off of the conglomerate’s stocks and bonds listed overseas earlier this year.
Adani Group activities have come under scrutiny over its proposal to privatize Kenya’s Jomo Kenyatta International Airport (JKIA).
The move was strongly opposed by Indian politicians, after widespread opposition from Kenya.
Adani Group is as one of India’s largest conglomerates with interests spanning various sectors, including energy, infrastructure, and logistics.
