Adani group says unaware of any subpoena to investors amid reports of regulatory scrutiny in US

Adani group has denied violating any of the norms (Reuters file image)

A day after reports claimed that the regulators in the United States have issued subpoena to Adani group investors, the Gautam Adani-led conglomerate issued a denial.

"We are not aware of any such subpoena to investors. Our various issuers groups remain confident that the disclosures are full and complete as disclosed in the relevant issuer offering circulars," a spokesperson of the ports-to-power giant said on June 23.

Earlier, Bloomberg News reported that the US Attorney's Office in Brooklyn, New York, has sent inquiries in recent months to investors with large holdings in Adani group, focused on what the company told them.

The US Securities and Exchange Commission (SEC) also has a similar probe underway, Bloomberg reported, citing two people familiar with the matter.

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The authorities are looking into the representations that Adani made to its American investors following short-seller Hindenburg's report, the news agency further said.

The SEC, in response to the news, said it does not comment on the existence or nonexistence of a possible investigation. The Eastern District of New York U.S. Attorney's Office declined to comment on the report.

The Adani group, however, has categorically denied violating any of the regulatory norms in the US. "We strongly reject any suggestion that Adani Group and its businesses have not acted as per the regulations and accounting standards of the jurisdictions in which they operate," the company said.

“Adani operates a robust corporate governance framework and is strongly committed to following all laws and regulations in all of its different markets," it added.

In January, Hindenburg Research said it held short positions in the group and accused the conglomerate of improper use of offshore tax havens. The short-seller also flagged concerns about high debt, eroding $11 billion in investor wealth.

The Securities and Exchange Board of India (SEBI) in May had "drawn a blank" in investigations into suspected violations in overseas investments in the Adani group and a Supreme Court-appointed panel said its ongoing pursuit of the case could be a "journey without a destination".

The Adani group spokesperson said the company has requested the media to "avoid needless speculation at this time" and wait for SEBI and the Supreme Court to "complete their work and submit their findings".

Wit Reuters inputs