New Delhi (Agency): The Adani Group, led by billionaire Gautam Adani, is in the spotlight again after new allegations were brought against the company. These allegations accuse the family and close associates of using offshore investment funds based in Mauritius to secretly pour hundreds of millions of dollars into their own stocks. This supposedly happened from 2013 to 2018, a period during which the company grew at a spectacular rate.
The allegations were made public by the Organised Crime and Corruption Reporting Project (OCCRP). According to the OCCRP, documents reveal a complex money flow through two Mauritius-based funds. These funds were managed by associates of the Adani family. The aim, as alleged, was to maintain and increase the share prices of the Adani Group’s companies.
In a quick response, the Adani Group strongly denied the charges. They termed the allegations as “recycled” and even questioned the timing and the interests behind these claims. The company stated that these are “yet another concerted bid by Soros-funded interests to revive the meritless Hindenburg report.”
Earlier this year, the Adani Group faced similar charges by Hindenburg Research, a US-based firm. Those allegations also had a significant impact on the group’s stock prices and market value. Adani had categorically denied those allegations as well.
The Adani Group clarified that they have been cleared of similar accusations in the past. They pointed to a Supreme Court ruling in March 2023 that affirmed the legality of their actions. “Clearly, since there was no over-valuation, there is no relevance or foundation for these allegations on transfer of funds,” the company stated.
However, opposition parties in India were quick to seize the moment. They used the new allegations to question the role of the Securities and Exchange Board of India (SEBI) and its connections with the Adani Group. Jairam Ramesh, general secretary of the Congress party, asked, “Despite the Modi government’s best efforts, the truth will not stay suppressed forever.”
The controversy also hints at possible global connections. Two foreign nationals, Nasser Ali Shaban Ahli from the United Arab Emirates and Chang Chung-Ling from Taiwan, have been cited as involved in the transactions. These individuals are said to have traded Adani Group stocks through the same Mauritius-based funds. Their involvement brings a new layer of complexity and raises questions about foreign influence in Indian companies.
The Adani Group remains one of India’s largest conglomerates, with a diverse portfolio that includes ports, energy, and logistics among others. The company has strongly refuted all allegations, stating that they are baseless and aimed at damaging the group’s reputation.
While the debate continues, it is crucial to note that these allegations are part of an ongoing investigation. SEBI, the market regulator, has been handed evidence, and investigations are underway. Adani insists they have “complete faith in the due process of law” and that the allegations will eventually be proven false.
In the middle of this turmoil, the stock prices of Adani Enterprises Ltd and other group stocks have taken a hit. The market awaits further clarification and evidence to determine the validity of these allegations. Until then, the clouds of suspicion continue to hover over one of India’s most powerful conglomerates.
As the saying goes, “where there’s smoke, there’s fire.” But in this case, the Adani Group argues that the smoke is nothing but a fog of unfounded accusations. Time and due process will reveal whether these allegations hold water or are indeed baseless.
