India’s market regulator chief has refuted claims from UK short-seller Hindenburg Research that offshore investments might have influenced her ability to investigate alleged corporate misconduct by the Adani Group.
Hindenburg’s report accused the Adani Group of significant corporate fraud, leading to a dramatic drop in market value last year. Gautam Adani, the founder of the Adani Group, labelled these allegations as a “deliberate attempt” to damage the group’s reputation for the benefit of short-sellers.
Hindenburg further alleged that Vinod Adani, Gautam Adani’s elder brother, controls numerous offshore shell entities in tax havens like Mauritius and Cyprus. This led to a substantial $117 billion loss in market value for the Adani Group and prompted the Indian Supreme Court to direct the Securities and Exchange Board of India (SEBI) to investigate.
Hindenburg has also accused SEBI chairperson Madhabi Puri Buch and her husband of holding investments in offshore funds linked to Vinod Adani. According to the report, these investments began in 2015, and prior to Buch’s SEBI appointment in 2017, her husband sought to be the sole operator of the account.
In response, Buch stated, “We strongly deny the baseless allegations and insinuations made in the report,” and assured that all necessary disclosures have been made. She added, “We have no hesitation in disclosing any and all financial documents, including those that relate to the period when we were strictly private citizens, to any and every authority that may seek them.”
The Adani Group’s close ties with Prime Minister Narendra Modi have been a point of contention, with critics suggesting these connections have helped Adani avoid scrutiny and gain business advantages.
