Adani Group Rejects OCCRP Allegations Of Stock Manipulation, Tax Haven Misuse
Adani Group called OCCRP allegation “recycled” and “ bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report.”
Adani Group "categorically" denied allegations of accounting fraud, stock price manipulation, and misuse of tax havens leveled by Organised Crime and Corruption Reporting Project (OCCRP) on Thursday. The company called OCCRP allegations “recycled” and “ bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report.”
On Thursday, OCCRP alleged that partners of the Adani promoter family invested hundreds of millions of dollars in Adani Group stocks through opaque investment funds based in Mauritius. OCCRP, backed by funding from entities like George Soros and Rockefeller Brothers Fund, report follows previous claims of accounting fraud, stock price manipulation, and misuse of tax havens by the Adani conglomerate.
These allegations, previously leveled by a US short seller Hindenburg, impacted Adani group stocks, causing a loss in value, of around $ 150 billion.
The OCCRP's investigation, based on files from various tax havens and internal Adani Group emails, identified instances where these mysterious investors engaged in buying and selling Adani stock through offshore structures. Nasser Ali Shaban Ahli and Chang Chung-Ling, both linked to the Adani family and associated with group companies, were highlighted by OCCRP for their involvement. Despite these claims, the Adani group has refuted all allegations of stock manipulation.
"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. In fact, this was anticipated, as was reported by the media last week," Adani Group said on Thursday.
"These claims are based on closed cases from a decade ago when the Directorate of Revenue Intelligence (DRI) probed allegations of over invoicing, transfer of funds abroad, related party transactions and investments through FPIs. An independent adjudicating authority and an appellate tribunal had both confirmed that there was no over-valuation and that the transactions were in accordance with applicable law," the port-to-power conglomerate said, adding that the matter attained finality in March 2023 when the SC ruled on th matter.
"We have complete faith in the due process of law and remain confident of the quality of our disclosures and corporate governance standards. In light of these facts, the timing of these news reports is suspicious, mischievous and malicious - and we reject these reports in their entirety," they further said.
What Are OCCRP's Allegations Against Adani
The Organized Crime and Corruption Reporting Project (OCCRP), an investigative reporting platform formed by 24 nonprofit investigative centres, alleged that the documents show that the management company in charge of their investments paid a Vinod Adani company to advise them in their investment.
The report citing documents said that partners of the Adani promoter family funneled substantial sums into publicly traded Adani group stocks via Mauritius-based investment funds. The two funds in question are the Emerging India Focus Fund (EIFF) and the EM Resurgent Fund (EMRF). These funds were used for trading Adani stock between 2013 and 2018, with investments channeled through various companies and an offshore fund named the Global Opportunities Fund (GOF).
According to SEBI norm, a company must maintain a "free float" of 25 per cent of its shares, available for public trading. The remaining 75 per cent can be held by promoters, who should declare their direct involvement with the company. Vinod Adani has been recently acknowledged as a promoter by the conglomerate.
However, records indicate that during their investment peak, Chang and Ahli held between 8 per cent and 13.5 per cent of free-floating shares of four Adani companies through EIFF and EMRF. If their holdings were linked to Vinod Adani's control, the Adani Group's promoter holdings could have potentially exceeded the 75 per cent limit.
The investments generated significant profits through buying low and selling high. Allegations of coordination with the Adani family also emerge. The Adani group has refuted these allegations.
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