US short seller Hindenburg Research has fired a fresh salvo against the Adani Group on September 12 alleging that Swiss authorities have frozen more than $310 million in funds across six Swiss bank accounts as part of an investigation into of money laundering and securities.
Citing a news report by Swiss media outlet Gotham City, Hindenburg in a post on X (formally Twitter) wrote, “Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani, dating back as early as 2021.”
“Prosecutors detailed how an Adani frontman invested in opaque BVI/Mauritius & Bermuda funds that almost exclusively owned Adani stocks, according to newly released Swiss criminal court records,” it added.
According to a report by the Swiss media outlet, Geneva Public Prosecutor’s Office was investigating alleged wrongdoing by the Adani Group well before Hindenburg Research made first accusations against the conglomerate.
A frontman representing Adani invested in opaque funds located in British Virgin Islands/Mauritius, and Bermuda, all of which almost exclusively owned Adani stocks, Hindenburg quoted the news report as saying.
In January 2023, Hindenburg Research released a scathing report targeting the Adani Group, controlled by Gautam Adani. The timing of the report, just before Adani Enterprises' scheduled share sale, could not have been more detrimental as it swiftly resulted in an astonishing $86 billion plummet in the market capitalisation of Adani Group’s stocks. This substantial decline in stock value subsequently prompted a substantial sell-off of the group's bonds listed abroad.
In June this year, Adani Group stocks hogged the limelight as the Gautam Adani-led conglomerate recovered its entire market cap erosion post the damning report by the Hindenburg Research, where it saw a wealth crash of about $100 billion across all the listed entities
In its latest report on August 10, Hindenburg has launched a direct attack on SEBI Chairperson Madhabi Puri Buch and the regulatory body, alleging that SEBI has shown a lack of interest in probing the Adani Group’s alleged undisclosed network of shell entities. SEBI, Buch and the Adani Group have all refuted the latest allegations.
The US-based short seller also questioned the 'complete silence' of Buch regarding Congress’s allegations about her consulting firm’s financial dealings during her tenure as a market regulator.
Adani Group dismisses latest allegations
Dismissing Hindenburg’s latest allegations, a Adani Group spokesperson said, “We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority. Furthermore, even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body."
“We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws. These allegations are clearly preposterous, irrational, and absurd. We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group's reputation and market value. The Adani Group remains steadfastly committed to transparency and compliance with all legal and regulatory requirements,” the spokesperson added.