The Adani-Hindenburg saga has intensified as the U.S. short seller, Hindenburg Research, claimed that Swiss authorities had frozen over $310 million in six bank accounts tied to the Adani Group, citing criminal court records. The Adani Group firmly rejected these “baseless allegations,” asserting that its operations are transparent, legal, and unrelated to any Swiss court proceedings. This latest development in the Adani-Hindenburg saga continues to fuel tensions, as the Adani Group vehemently denies any wrongdoing, maintaining that the accusations are part of an ongoing, orchestrated attack against them.
According to Hindenburg’s claims, Swiss authorities have frozen the funds as part of an investigation into alleged money laundering and securities fraud involving the Adani Group, dating back to 2021. The short seller pointed to recently released Swiss court records, which they claim detail financial activities involving offshore entities linked to the Indian conglomerate.
The Adani Group, however, has categorically denied these allegations. In their response, they emphasized that their overseas holding structures are fully transparent, disclosed, and compliant with all legal requirements. The company also clarified that it is not involved in any Swiss court cases and that none of their group companies have been mentioned in any such court documents or received any requests for clarification from the authorities.
Swiss Developments in the Adani-Hindenburg Saga
In a post on X (formerly Twitter), Hindenburg alleged that Swiss authorities had uncovered financial transactions involving offshore entities connected to the Adani Group. The short seller claimed that these entities, based in jurisdictions such as the British Virgin Islands, Mauritius, and Bermuda, held significant portions of Adani stock. The Swiss media also reported that the Geneva Public Prosecutor’s Office had been investigating these claims well before Hindenburg’s initial accusations.
According to the Swiss media report, over $310 million linked to an alleged frontman for Gautam Adani, the Adani Group’s founder, was frozen across five Swiss banks. In response, the Adani Group stated that the allegations were “absurd, irrational, and preposterous.” They reiterated that none of their accounts had been sequestered by Swiss authorities.
The Adani Group further condemned the allegations as a “coordinated and malicious attempt” to damage their reputation and market value. They reaffirmed their commitment to transparency and compliance with all legal and regulatory standards, dismissing the allegations as part of an orchestrated campaign against them.
Ongoing Hindenburg-SEBI Conflict
Hindenburg has continued its scrutiny of the Adani Group, recently accusing the Securities and Exchange Board of India (SEBI) chairperson, Madhabi Buch, of delaying the investigation into the conglomerate. The short seller alleged that Buch may have a conflict of interest due to her past investments in companies connected to the Adani Group. Both Buch and the Adani Group have denied these claims.
The opposition Congress party has also joined the fray, accusing Buch of holding 99% of shares in a company that still provides consultancy services, and alleging that her husband, Dhaval Buch, had earned income from companies she was responsible for regulating. Buch has dismissed these allegations as baseless and characterized them as an attempt to undermine her work at SEBI.
Buch also clarified that her past investments pre-date her tenure as SEBI chairperson and that all necessary disclosures were made at the time. She accused Hindenburg of attempting “character assassination” in retaliation for SEBI’s ongoing enforcement actions and a “show cause” notice issued to the short seller for violations of Indian regulations.
Hindenburg’s Initial Attack on Adani
Hindenburg first targeted the Adani Group on January 24, 2023, accusing the conglomerate of decades of stock manipulation and accounting fraud, with an estimated $218 billion involved. According to Hindenburg, several Adani companies had taken on significant debt, with five out of seven reporting low current ratios, indicating potential liquidity problems.
The short seller also alleged that the Adani Group had faced multiple government investigations for money laundering, theft, and corruption, totaling $17 billion. A key accusation in the report was that Gautam Adani’s elder brother, Vinod Adani, had ties to offshore shell entities in tax havens like Mauritius and the Caribbean, which were allegedly used for stock manipulation and money laundering.
Hindenburg further claimed that these offshore entities controlled large portions of Adani stock, contributing to market instability through stock parking and manipulative trading practices. The report also questioned the integrity of Adani’s independent auditor, a small firm with limited resources, which raised concerns about the reliability of the company’s financial audits.
Despite ongoing investigations by SEBI, Hindenburg argued that enforcement actions against the Adani Group had been minimal, allowing the conglomerate to continue its alleged fraudulent activities unchecked.
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