The Adani company has had a rocky 2023 as a result of charges of corporate fraud and bad governance made by the American short-seller company Hindenburg Research.
It has only been 8 months since Adani got blowed up by Hindenburg, shares of the Adani Group firms dropped again on Thursday as a result of a report by the Organised Crime and Corruption Reporting Project (OCCRP) that attempted to support earlier claims of share price manipulation by individuals associated with the promoters. The flagship Adani Enterprises saw a drop of as much as 5%, comparable to what happened following the January publication of a damning study by US short-seller Hindenburg Research.
The OCCRP, a worldwide network of investigative journalists, claimed in a report released on Thursday that documents obtained by the reporters demonstrate that “two men who spent years trading hundreds of millions of dollars’ worth of Adani Group stock: Nasser Ali Shaban Ahli and Chang Chung-Ling, had close ties to the Adani family, including appearing as directors and shareholders in affiliated companies”.
Records reveal that a business controlled by a senior member of the Adani family sent instructions to the investment funds they used to trade in Adani Group stock, according to the OCCRP.
Adani Green Energy shares dropped more than 3.3 percent to Rs 937.90, while shares of Adani Ports and Special Economic Zone (APSEZ) declined 2.25 percent to Rs 800.25.
In response to the OCCRP findings, Adani Transmission (-1.82%), Adani Wilmar (-1.63%), Adani Total Gas (-1.89%), and Adani Power (-2.54%) all experienced significant declines. NDTV (-1.39%), Ambuja (-2.53%), and ACC (2.53%) were among the Adani Group-owned businesses whose shares had significant declines during the trading session.
According to the OCCRP findings, Adani Group used these secret Mauritius money to invest in its publicly traded companies.
This claimed financial manipulation highlighted a complicated network of financial connections by hiding the identities of purported Adani family business associates. The seriousness of these accusations is further increased by OCCRP’s role in uncovering corruption.
“The documents show that, through the Mauritius funds, they spent years buying and selling Adani stock through offshore structures that obscured their involvement — and made considerable profits in the process. They also show that the management company in charge of their investments paid a Vinod Adani company to advise them in their investments,” the OCCRP stated in its report.
The Adani Group quickly responded, dismissing the OCCRP report as “recycled allegations” and denying it.
“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 stated.
“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,” the Adani Group added.
All things considered, the aggregate market worth of the Adani Group suffered significantly as a result of the Hindenburg report, and now OCCRP. Given the situation, it won’t be shocking if shares of Adani Group firms experience some hesitant trading following the most recent allegations.