Adani Group denies report Swiss authorities froze $310 million in funds

In January 2023, Hindenburg accused Adani Group of using tax havens to sidestep local market regulations

Adani Group has strongly refuted allegations that Swiss authorities have sequestered bank accounts linked to the group as part of a money laundering investigation. According to a report by investigative news website Gotham City, Swiss authorities froze more than $310 million across multiple Swiss bank accounts as part of the investigation into entities allegedly linked to the Adani Group.

The Adani Group called the allegations "preposterous, irrational, and absurd". The Group further added that the latest allegations are another attempt by the same cohort to damage its reputation and market value.

The investigation, which dates back to 2021, showed significant financial activity tied to investment structures in offshore tax havens, including the British Virgin Islands (BVI), Mauritius, and Bermuda that exclusively owned Adani stocks, according to the report by the Swiss media outlet. The link to the report was posted on X by Hindenburg Research.

Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani, dating back as early as 2021.Prosecutors detailed how an Adani frontman invested in opaque
Hindenburg Research (@HindenburgRes) September 12, 2024

In a post on X, US-based short seller Hindenburg Research said, "Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani, dating back as early as 2021. Prosecutors detailed how an Adani frontman invested in opaque BVI/Mauritius & Bermuda funds that almost exclusively owned Adani stocks, according to newly released Swiss criminal court records reported by Swiss media outlet."

In a statement, the Adani Group denied what it termed as "baseless allegations".

"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. 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."

In January 2023, Hindenburg accused the Adani group of stock-price manipulation, undisclosed related-party transactions, and breach of public shareholding norms. The group, however, denied all allegations.

The short-seller, in an August 10 report, alleged that Securities and Exchange Board of India Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, held investments in offshore entities tied to a fund backed by Vinod Adani, brother of billionaire Gautam Adani, citing information shared by a whistleblower. Buch and Sebi denied the allegations.