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A recent investigation by the Organized Crime and Corruption Reporting Project (OCCRP) has raised questions about the involvement of opaque Mauritius-based funds in the investment activities of India's Adani Group. OCCRP's scrutiny, which included a review of documents from various tax havens and internal Adani Group emails, has uncovered at least two instances where these "mysterious" investors engaged in the purchase and sale of Adani stock through offshore structures, concealing the identities of alleged business partners connected to the Adani family.
This revelation comes in the wake of earlier accusations by U.S.-based short-seller Hindenburg Research, which, in January, alleged improper business dealings by the Adani Group. These allegations included claims that offshore entities in tax havens, such as Mauritius, were being used to surreptitiously hold stock in Adani's publicly listed firms. In response, the Adani Group vehemently denied these allegations, characterizing them as misleading and unsupported by evidence. The Group reiterated its commitment to adhering to all relevant laws and regulations.
Despite these denials, the January report from Hindenburg Research had a substantial impact on the Adani Group's financial standing. In the days following the report, the group's stocks witnessed a staggering loss of $150 billion in market value. While some recovery has occurred in recent months, attributed to debt repayment and a partial restoration of investor confidence, the group still faces a substantial deficit of around $100 billion compared to its pre-report market valuation.
In a statement made to OCCRP, the Adani Group noted that the Mauritius funds under investigation had already been named in the Hindenburg report, characterizing the allegations as baseless and unsubstantiated. The group emphasized its commitment to complying with all applicable laws, particularly those relating to public shareholdings.
It's crucial to note that Reuters has not independently verified OCCRP's findings. This investigation raises significant questions about the transparency and governance of financial activities involving major corporations, emphasizing the importance of thorough scrutiny and adherence to financial regulations.
