Indian conglomerate Adani Group has vehemently denied recent news reports claiming that the billionaire family had covertly invested hundreds of millions of dollars in India’s stock market to purchase its own shares. Adani Enterprises, the group’s flagship company, dismissed these reports as a deliberate attempt to revive the discredited Hindenburg report.
The latest claims are said to be based on closed cases from ten years ago, when India’s Directorate of Revenue Intelligence conducted investigations into allegations of overinvoicing, transfer of funds abroad, related party transactions, and investments made through foreign portfolio investments.
Adani Group remains steadfast in maintaining its integrity amidst these unfounded allegations.
Adani Companies Face Allegations of Fraud and Stock Manipulation
Earlier this year, Adani companies faced a significant blow when U.S. short seller Hindenburg Research accused the conglomerate of a wide range of fraudulent activities. These allegations included accounting fraud and manipulation of stock prices through shell companies. In response, Adani vehemently denied all the claims.
The Hindenburg report created a political storm, prompting the Supreme Court of India to launch an investigation into the market turmoil. The court appointed a panel, which reported in May that it could not definitively conclude any regulatory failure concerning the allegations of price manipulation.
Given the involvement of India’s top court and the Securities and Exchange Board of India in overseeing these matters, Adani Enterprises emphasized the importance of respecting the ongoing regulatory process. The company stated, “We have complete faith in the due process of law and remain confident in the quality of our disclosures and corporate governance standards. Therefore, we find the timing of these news reports suspicious, mischievous, and malicious. We reject these reports in their entirety.”
It is worth noting that the OCCRP, which describes itself as an investigative reporting platform for a worldwide network of independent media centers and journalists, was the source of these allegations.