Today, the Adani Group has strongly refuted what it refers to as “rehashed allegations” from a report by the Organised Crime and Corruption Reporting Project (OCCRP), funded by George Soros. The group accuses the report of attempting to revive previous allegations of concealed foreign investors, labeling it a coordinated effort by Soros-funded entities, backed by a section of foreign media, to resurface the unsubstantiated Hindenburg report. This outcome was predicted and had been reported in the media the previous week, according to the statement released by the conglomerate.
The OCCRP report alleges instances of insider trading involving two foreign investors. The Adani Group contends that these claims are rooted in cases from a decade ago when the Directorate of Revenue Intelligence (DRI) investigated accusations of overpricing, international fund transfers, transactions with related parties, and investments through Foreign Portfolio Investors (FPIs).
The conglomerate states, “Both an independent adjudicating authority and an appellate tribunal confirmed that there was no overvaluation, and that the transactions complied with the relevant laws. This matter reached a conclusion in March 2023 when the Supreme Court of India ruled in our favor. Given the absence of overvaluation, the claims regarding fund transfers lack relevance and foundation.”
The Adani Group also highlights that these FPIs are already under scrutiny by the SEBI (Securities and Exchange Board of India). The group cites an Expert Committee appointed by the Supreme Court, which found no evidence of breaching Minimum Public Shareholding (MPS) requirements or manipulating stock prices.
The group expresses disappointment that despite being queried, the news publications chose not to present their response comprehensively. They assert that these efforts are aimed at driving down their stock prices for profit, and these short sellers are being investigated by various authorities.
The company emphasizes the significance of respecting the ongoing regulatory process, as both the Supreme Court and the Securities and Exchange Board of India (SEBI) are overseeing the matter.
Confident in their adherence to legal procedures and corporate governance standards, the Adani Group states, “Given these facts, the timing of these news reports raises suspicion, suggesting ulterior motives. We reject these reports entirely.”
Additionally, the Central Bureau of Investigation (CBI) probed the allegations of overvaluation and overpricing of power transmission equipment, closing the case on July 15, 2015. The Enforcement Directorate discovered that 18 companies, including foreign portfolio investors and foreign institutional investors in tax havens, gained significantly from short selling Adani Group shares following the Hindenburg report, which triggered a market crash in January. These findings have been shared with SEBI. It is reported that investigative agencies might delve into money laundering and other accusations against these companies.