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Friday, April 19, 2024

India’s Adani accused of pulling the largest corporate fraud

Adani is one of India's biggest business groups. Gautam Adani is India's richest man and is also considered to have a close relationship with India’s Prime Minister Narendra Modi.

A US-based financial forensic firm Hindenburg Research has alleged that Gautam Adani’s firm Adani Group is involved in a massive and “brazen stock manipulation” and “accounting fraud scheme.”

According to the details, Hindenburg Research recently published a report titled “Adani Group – How the World’s 3rd Richest Man is Pulling the Largest Con in Corporate History”. The report is based on a two-year investigation and claims that more than $100 billion was added to Gautam Adani’s net worth in the past three years largely due to an 800% rise in stock prices during this period.

“The Adani Group has previously been the focus of 4 major government fraud investigations which have alleged money laundering, theft of taxpayer funds and corruption, totaling an estimated U.S. $17 billion,” the report said.

Read more: Shocking report accuses Indian billionaire of funding Myanmar military-owned firm

“Adani family members allegedly cooperated to create offshore shell entities in tax-haven jurisdictions like Mauritius, UAE & the Caribbean to generate forged import/export documentation, generate fake or illegitimate turnover, and siphon money from the listed companies,” Hindenburg Research also said.

The Hindenburg Research is a New York-based firm and targeted about 30 companies since 2020. One high-profile example: Electric-vehicle maker Nikola, which Hindenburg called an “ocean of lies.’’ Last October, Nikola founder Trevor Milton was convicted of defrauding investors.

Adani Group rejects allegations

Shortly after the Hindenburg Research report was published, Adani Group released a statement denouncing the allegations of fraud. Adani Group termed the allegations as “baseless” and a “malicious combination of selective misinformation.”

The Adani Group’s chief financial officer Jugeshinder Singh said that Hindenburg did not make “any attempt to contact us or verify the factual matrix,” adding that the allegations made by the short seller are “stale, baseless and discredited.”

To clarify, Adani is one of India’s biggest business groups. Gautam Adani is India’s richest man and the world’s third-richest man. He has spent four decades building a business empire spanning energy, agribusiness, real estate, and defense, among others.

Read more: India’s Adani is momentarily ranked as the second-richest person in the world

He is also considered to have a close relationship with India’s Prime Minister Narendra Modi, with his ambitious goals closely aligned with the government’s priorities. Interestingly, Adani Group suffered a loss of $7.7 billion when Hindenburg Research revealed its findings on the company’s alleged fraud.