The Adani Group is facing a wave of allegations stemming from a report by the Organized Crime and Corruption Reporting Project (OCCRP). The report asserts that the conglomerate funneled millions of dollars into publicly traded stocks through seemingly "opaque" Mauritius funds. Adani Group, however, has vehemently denied these allegations, citing ongoing legal proceedings and referring to the issue as being previously addressed in the Hindenburg report.
The conglomerate swiftly addressed the claims, asserting that they were already under the scrutiny of the Securities and Exchange Board of India (SEBI). The OCCRP, a non-profit media entity, contended that the essence of these allegations rested on the possibility of Adani insiders posing as key public investors, potentially violating Indian securities law. The OCCRP's investigation delved into files from various tax havens and internal company communications, uncovering instances of investors trading Adani stock via offshore structures.
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The conglomerate pointed out that these claims had already been encompassed within an ongoing investigation by the Securities and Exchange Board of India (SEBI).
The OCCRP's exposé unveiled the heart of the matter: some of Adani Group's principal public investors allegedly held Adani insider positions, potentially breaching Indian securities law. Citing a meticulous review of data from various tax havens and internal company communications, the OCCRP divulged instances of investors trading Adani stocks through offshore structures.
Promptly addressing the OCCRP's report, the Adani Group released a statement, forcefully refuting the "recycled allegations." The Group suggested a potential motive behind the allegations, pointing a finger at billionaire George Soros and his interests.
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The Adani Group's statement read, "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."
The conglomerate maintained, "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."
The statement emphasized, "As per the Expert Committee appointed by the Hon’ble Supreme Court, there is no evidence of any breach of the Minimum Public Shareholding (MPS) requirements or manipulation of stock prices."
Regretfully noting media handling of their response, the Adani Group expressed, "It is unfortunate that these publications, which sent us queries, chose not to carry our response in full. These attempts are aimed at, inter alia, generating profits by driving down our stock prices and these short sellers are under investigation by various authorities. As the Hon’ble Supreme Court and SEBI are overseeing these matters, it is vital to respect the ongoing regulatory process."
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