US-based short seller Hindenburg Research has claimed that Swiss authorities have frozen over $310 million in funds across multiple bank accounts as part of an ongoing investigation into alleged money laundering and securities forgery linked to the Indian conglomerate Adani Group. The allegations were strongly denied by Adani Group.
According to a post by Hindenburg on X (formerly Twitter), the claim is based on "newly released Swiss criminal records reported by Swiss media outlet Gotham City." The post alleges that the frozen funds are connected to a probe dating back to 2021. "Prosecutors detailed how an Adani frontman invested in opaque BVI/Mauritius and Bermuda funds that almost exclusively owned Adani stocks," Hindenburg stated, citing the report.
Gotham City's report highlights a ruling by the Swiss Federal Criminal Court (FCC), revealing that the Geneva Public Prosecutor's Office had initiated an investigation into the Adani Group long before Hindenburg's first accusations in 2021. "More than $310 million belonging to an alleged frontman for billionaire Gautam Adani is sequestered in five Swiss banks," the report said. Following the media exposure, the Office of the Attorney General of Switzerland (OAG) assumed control of the investigation.
Adani Group has rejected the accusations as baseless and has denied any involvement in the Swiss court proceedings.
A spokesperson for the conglomerate issued a statement, saying, "We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority."
The spokesman said, "Furthermore, even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws.”
“These allegations are clearly preposterous, irrational, and absurd. We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group's reputation and market value. The Adani Group remains steadfastly committed to transparency and compliance with all legal and regulatory requirements. We strongly condemn this effort and urge you to refrain from publishing this story. Should you decide to proceed, we request that you include our statement in full,” the spokesperson added.
Hindenburg, known for its earlier claims of stock market manipulation and fraud against the Adani Group in January 2023, stated that Swiss criminal court records provide details of how the Adani frontman invested in opaque offshore funds, which were heavily concentrated in Adani stock.