Adani Group secretly invested millions in own stocks: Soros-funded OCCRP
Billionaire George Soros-funded Organized Crime and Corruption Reporting Project (OCCRP) has claimed that millions of dollars were invested in certain publicly traded stocks of Adani Group, via 'opaque' Mauritius funds. These funds allegedly "obscured" the involvement of the Adani family's business partners. The investigation has discovered at least two instances where investors purchased and sold Adani shares through such offshore structures. At the time of writing, all of Adani Group's stocks were down up to 4.5%.
Nasser Ali Shaban Ahli and Chang Chung-Ling are under scanner
The OCCRP report has named two investors who allegedly made the "opaque" payments. They are Nasser Ali Shaban Ahli and Chang Chung-Ling, who have been described as "longtime business partners" of the Adani family. OCCRP claims there is no evidence to show that the money for their investments came from the Adani family. However, it said there "is evidence" that their trading in Adani shares "was coordinated with the family."
The investors were allegedly associates of Vinod Adani
Separately, British business daily Financial Times has claimed that the two investors named by OCCRP were associates of Gautam Adani's brother, Vinod Adani. The publication has alleged that a Vinod Adani employee supervised Ahli and Chung-Ling's investments, possibly to aid in bypassing the rules to prevent stock price manipulation. This development is significant because Vinod is a part of Adani's promoter group. The company has refuted the allegations.
Adani Group denies OCCRP's allegations
Adani Group has refuted the allegations made by OCCRP, calling them baseless, unsubstantiated, and rehashed from Hindenburg's claims. To recall, US-based short-seller Hindenburg Research in January accused Adani of improper business dealings. This included the usage of offshore entities in tax havens like Mauritius. The Adani Group insists that all its publicly listed entities comply with applicable laws, including regulations relating to public shareholdings.
Adani suffered $150 billion market value loss because of Hindenburg
The Hindenburg report had a significant effect on Adani Group's stocks and business operations, resulting in a $150 billion loss in market value. Although stocks have partially rebounded, they remain down by around $100 billion. The crisis forced billionaire Gautam to postpone a $2.5 billion share sale and work to regain banks' confidence in his business credentials.
Supreme Court panel is probing Hindenburg report
In response to the allegations, India's Supreme Court set up a panel to oversee a market regulator investigation based on the Hindenburg report. The panel stated that the regulator so far had "drawn a blank" in investigations into alleged violations in overseas investments in Adani Group. The regulator announced last week that its report was almost at completion and that it would take proper action based on the investigation's outcome.
