By Muslim Mirror Staff
The Adani Group recently found itself embroiled in a new controversy concerning non-transparent financial transactions. This arose following the release of a report by a worldwide coalition of investigative journalists. The report claimed that the company had channelled significant sums of money into its own enterprises using undisclosed offshore mechanisms.
The findings of the investigation, which were brought to light through publications such as The Guardian and Financial Times, had a substantial impact on the market. The combined market value of the Adani Group’s ten stocks plummeted by ₹35,210 crore as a result.
The Guardian’s report, which relies on documents obtained by OCCRP, sheds light on a previously undisclosed offshore operation based in Mauritius, allegedly controlled by associates of the Adani Group. This operation, the report claims, was used to manipulate the share prices of Adani Group companies between 2013 and 2018. Until now, the full extent of this offshore network had remained concealed.
The reports also alleged that the Directorate of Revenue Intelligence (DRI), which is India’s top intelligence agency for anti-smuggling activities under the finance ministry, communicated with the country’s securities regulator, the Securities and Exchange Board of India (Sebi), back in 2014. This communication from DRI raised concerns about suspicious trading activities involving offshore entities linked to the Adani Group. However, in its submissions to the Supreme Court of India, Sebi stated that it only initiated an investigation into the Adani Group in 2020, casting doubt on whether the regulator had indeed pursued the leads provided by DRI and the results of any previous inquiries.
In response to these allegations, the Adani Group has vehemently denied any wrongdoing, characterizing the report as a conspiracy orchestrated by foreign entities. The group maintains that it has consistently adhered to all regulatory norms and financial regulations.
“We categorically reject these recycled allegations. These news reports appear to be yet another concerted bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report,” the Adani group said.
However, the fallout from these accusations has had a substantial impact. Adani Group’s shares plummeted in response to the news, leading to a significant decrease in its market capitalization, which now stands at $150 billion.
These developments have raised concerns within the Indian financial and political landscape, as the Adani Group has wielded considerable influence and power, owing to its close ties with Prime Minister Modi’s administration.
